Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF) said it has started a feasibility study for its wholly-owned Clayton Valley lithium project in Nevada and named engineering giant Wood PLC as its lead author.
It added that Global Resource Engineering (GRE) will also conduct work to complete the NI 43-101 compliant document on the asset, which sits just east of Albemarle’s Silver Peak mine - North America’s only lithium brine operation.
Wood, which employs 40,000 staff and operates in over 60 countries, has been responsible for, or involved in, the preparation of more than 300 such reports.
It will author the overall report, including direct responsibility for infrastructure, process design, processing facilities, tailings and waste facilities, and environmental stewardship, said Cypress.
Last month, Wood was awarded a deal with processing firm Green Lithium to be its owner's engineer, tasked to build and operate the UK's first large-scale commercial lithium refinery.
READ: Cypress Development consolidates strategic land position at Clayton Valley in Nevada
GRE has already completed the preliminary economic assessment (PEA) and pre-feasibility study on the firm's Clayton Valley project and will be responsible for the geologic model, estimation of resources and reserves, and compiling the mine plan and mining production schedule for the feasibility study.
Cypress Development is a focused on advancing its project towards the production of high-purity lithium hydroxide suitable for tier-one battery usage.
In February it reported the successful completion of a 14-day operating test at its lithium extraction pilot plant
The Clayton Valley project already has an indicated resource of 6.3 million tonnes of lithium carbonate equivalent (LCE) and a probable reserve of 1.28 tonnes.
The project was the subject of a pre-feasibility study in 2021, which showed a net present value (NPV) of US$1.03 billion and an internal rate of return (IRR) of 25.8%, based on an LCE price of $9,500 per tonne.
The mine-life was pegged at over 40 years at 15,000 tonnes per day (tpd), while the capital cost of the project was put at US$493 million over two years.
Contact the writer at giles@proactiveinvestors.com