Cypress Development Corp (TSX-V:CYP, OTCQX:CYDVF) has reported positive lithium recovery rates at the Direct Lithium Extraction (DLE) portion of its pilot extraction plant in Nevada, USA.
The DLE area is just one part of the plant and consists of a proprietary process and equipment acquired from Chemionex Inc.
Based on the results, the firm will now release 1 million Cypress shares, held in escrow, to Chemionex, satisfying last year's share purchase and license agreement with the latter, meaning Cypress now has full ownership of the equipment and a royalty-free license in perpetuity to use the Chemionex technology at the pilot plant and its Clayton Valley asset.
"We are very pleased with the DLE results from the pilot plant," said Bill Willoughby, Cypress CEO, in a statement.
"Thanks to Chemionex, vendors of the DLE process, and the work of our team, the results are consistent over time and sufficient to give Cypress confidence in this part of our overall process. The information gained from the testing along with the license to the technology are important steps for Cypress and the ongoing feasibility study."
READ: Cypress Development updates investors on feasibility study progress at its Clayton Valley lithium project in Nevada
Assays received from samples collected during continuous operating cycles at the DLE in March, April, and May this year revealed an average lithium recovery of 99.5%, with the high lithium recoveries accompanied by high levels of impurity rejection.
The extraction of the lithium begins in the pilot plant with acid leaching a slurry of lithium-bearing claystone. The solution obtained then passes through several steps before entering the DLE process.
In continuous 24-hour-per-day tests from the end of March through mid-May 2022, lithium recoveries in the DLE portion were consistently above 99%. These high lithium recoveries were observed in 76 sets of feed and discharge samples.
The samples were collected at six-hour intervals and were assayed at ALS Global for lithium and other elements. Rejection of major cations, calcium and magnesium during the period was also above 99%.
Cypress Development is a Canada-based lithium explorer, focused on developing its 100%-owned Clayton Valley project, which it is advancing towards completing a feasibility study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle (EV) and battery storage market.
Contact the author at giles@proactiveinvestors.com