Cypress Development Corporation – Fall Drill Program Update
In my opinion, oil is still the commodity that rules the roost when it comes to political power throughout the world. With the feud between North Korea and the United States appearing to be far from over, and Saudi Arabia’s move toward better relations with the Chinese and Russians, arguably, the geo-political landscape has never been more cloudy.
Given my opaque geo-political outlook, mixed with the idea that we may be seeing a tightening in the oil supply, I think we will see higher prices in the near future, after a few years of low prices and reduced production.
While higher oil prices will only make the transition to electrically propelled vehicles easier and more desirable, I don’t believe oil’s dominance is something that’s going to be overturned in a year or two; it’s going to be at least a decade before green energy and electric vehicles make a meaningful dent in the overall energy and vehicle propulsion fields.
However, grabbing 10% of world energy production and 10% of an estimated billion world car market will have a MAJOR impact on the materials, mainly the metals, which will make up these new machines. The primary metals I’m referring to are lithium, nickel, cobalt, manganese, copper and graphite.
Whether it be through government legislation, international initiatives, such as the Paris Accord, or the general population’s desire for cleaner air, electrification of the world is coming – and coming sooner than many may think!
The Tesla Semi
The push toward the electrification of the world took another giant step last week as Elon Musk, founder of Tesla, unveiled his most recent creation, the Tesla Semi. The Semi is an electrically driven transport truck that’s set to replace its diesel equivalent, which currently delivers products via highways around the world.
At first, I was skeptical about the Semi’s capabilities, but surprised to see that it does have some impressive specifications, such as:
- Unloaded – 0 to 60 mph in 5 seconds
- Loaded to maximum weight of 80,000 lbs gross weight – 0 to 60 mph in 20 seconds
- Loaded to maximum weight of 80,000 lbs gross weight and highway speed – Batteries have a 500 mile range
- Drag Coefficient – 0.36 – This is really good ,and key to the range
In the unveiling ceremony, which you can watch here, Musk mentions that like Tesla’s cars, the Semi will have access to their worldwide Tesla Mega Charge Network (TMCN), which is powered by solar electricity, which is stored in Tesla Power Packs and available at charging stations across the world, 24-hours a day, 7-days a week, as Musk puts it.
Oil is still going to play a major role in the world for years to come, but I think it’s undeniable that the future is in green energy production and the electrification of our vehicles. For investors looking to get an early start on positioning themselves for this electric future, buying companies that are exploring, developing or producing the battery metals may be a fortuitous decision.
Which brings me to a junior lithium company that I introduced a couple of weeks ago, Cypress Development Corporation. Today, I have an update on the company – let’s take a look!
Cypress Development Corp. Update
To recap from my introductory article, Cypress’ contiguous Dean and Glory Lithium Projects are located in Clayton Valley, Nevada. This location is of particular importance, as the projects are located directly beside Albemarle’s Silver Peak Lithium brine mine, currently the only producing lithium mine in North America. Not only is this area highly prospective because it’s close to an active mine, but the infrastructure, roads, power and labour make it ideal for future development.
Also, Clayton Valley is located near the future site of Tesla’s Gigafactory, which will have an annual battery output of 35 Gigawatt-hours, which is equivalent to the entire world’s battery production.
Secondly, Cypress possesses a good technical team which is led by CEO, Dr. William Willoughby, who, along with VP of Exploration, Robert Marvin, is working toward expanding and proving deposit continuity and, ultimately, achieving economic extraction of lithium from the claystones.
Thirdly, Cypress’ total land package in Clayton Valley is roughly 4200 acres, with a current known strike length of claystone containing lithium of roughly 6 km by 2 km wide at a depth of 100 m.
2017 Fall Drill Program Update
Cypress’ fall drill program will consist of 12 to 14 holes and will target 100 m of depth, as previous drilling has indicated this shallow mineralization. As outlined in my previous article, previous drilling this past spring on the Dean Lithium Project intersected continuous and consistent grades, averaging 899 ppm Li throughout the depths of all 9 holes.
Source: Cypress Development Corp – Core Samples
From this fall’s drill program, 5 diamond core drill holes have been completed on the Dean Project, thus far, with assays pending and news released by the end of November or the beginning of December. In the meantime, Cypress has moved the drill rig on to the Glory project and has begun drilling the second phase of the drill program.
PUSH: Watch for continued fall drill program results, showing the continuity of grade and expansion of the deposit.
In my opinion, the move toward green energy and the electrification of our vehicles is well on its way to removing oil and/or fossil fuels as the world’s primary energy and vehicle propulsion source. The change doesn’t occur overnight, but every step toward this clean air future can have dramatic effects on the resource sector, specifically in the battery metals, lithium, nickel, cobalt, manganese, copper and graphite.
For me, I’m investing a significant portion of my personal portfolio into the battery metals, as I prepare for what I think is going to be a major sector in the world of the future.
In Cypress’ case, the main question mark comes with the economic viability of extracting lithium from the claystones. While answering this question is vital to the future development of the project, there are a lot of great points that should be considered and, in my mind, make it a good risk to reward proposition:
- Good technical team which is focused on working toward expanding and proving deposit continuity, and, ultimately, achieving economic extraction of lithium from the claystones.
- Contiguous Dean and Glory Lithium Projects are located in Clayton Valley, Nevada; a premier destination for mining and home to North America’s only producing lithium brine mine.
- High potential for a large deposit – current known strike length and depth, 6 km x 2 km x 100 m deep
- Low MCAP and Tight Share Structure
- Cash on hand and a low cost of exploration – Cypress’ cash position should last through 2018
- PUSH: Watch for continued fall drill program results, showing the continuity of grade and expansion of the deposit.
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Until next time,
Brian Leni P.Eng
Founder – Junior Stock Review
Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company(s) and sector that is best suited for your personal investment criteria. Junior Stock Review does not guarantee the accuracy of any of the analytics used in this report. I do own Cypress Development Corporation shares. Cypress Development Corporation is a Sponsor of Junior Stock Review.