VANCOUVER, Canada, May 11, 2015 (GLOBE NEWSWIRE) -- Cypress Development Corp. (TSX-V: CYP) (OTC Pink: CYDVF) (Frankfurt: C1Z1) ("Cypress" or the "Company") is pleased to announce it has entered into an Option Agreement with Robert D. Marvin (the "Optionor") of Reno, Nevada to earn a 100% interest in the 1056 acre (48 claims) Frost gold property (the "Property") located in Malheur County, south eastern Oregon, approximately eight miles west from Calico Resources Grassy Mountain gold project. The Calico Resources Grassy Mountain gold project is currently tracking to a production scenario based on major exploration programs completed by Newmont and Seabridge Gold.
Frost Gold Project Claims Map:
Frost Property Geology and Mineralization
The Frost property lies within the Owyhee Highlands, a Miocene age geologic terrain which is known to contain high grade gold mineralization hosted in both low sulfidation (quartz-adularia) veins and within pervasively altered and brecciated sandstone units.
The Frost project is centered on an outcropping, reed cast fossil bearing, hot springs sinter. Limited drilling has discovered blind, coarse gold bearing veining at shallow levels below the outcropping sinter. Strike extension exploration of the known discovery vein system is incomplete. In addition, exploration of the discovery vein system within a massive and highly favorable basalt unit located deeper in the rock section under the known mineralized structure has not been done. The high potential for the discovery of significant gold bearing vein systems within the massive, thick basalt unit is due to the brittle nature of the unit, repeated fracturing of such units provide excellent pathways for vein development.
The complex stratigraphy of the Frost property, as at Fire Creek, creates strongly vertically zoned mineralization including the existence of blind veins which are concealed below altered cap rocks. The discovery of strong gold mineralization at the Frost property by Western Mining Corp (USA) was done by reverse circulation drilling (1990) along a linear soil geochemical anomaly that was high in silver and anomalous in gold. Drill results included an intercept of 4.6 metres of 14.5 grams per tonne gold within a steeply dipping quartz vein. The intercept occurred from 88.4 to 93 meters downhole. A second high grade intercept of 4.6 metres of 8.0 grams per tonne gold occurred in a separate RC hole at a depth of 65.5 to 70.1 meters. Potential extensions to the discovery vein have not been explored in any detail at the Frost property. (The drill results are historical in nature and have not been verified by Cypress and therefore should not be relied upon.)
Frost Gold Project Exploration Area Map:
At Fire Creek, Klondex Mines has been very successful at discovering wider and higher grade veining at depth by drilling deeper in the section and intercepting a thick basalt flow which has now been shown to be an excellent host for bonanza grade gold veining. The Frost property has a very similar basalt unit in position below the known mineralized vein, veinlet stockwork and breccia zones. This basalt has not been explored by drilling to date.
Cypress is contemplating an initial reverse-circulation drill program of 1000 meters in 4 to 6 holes to substantiate previous work and to further delineate the geometry and extent of high grade vein mineralization. A previous detailed soil geochemical survey has indicated a strong linear soil anomaly approximately 215 meters to the south west of known mineralization. Two additional priority targets with strong multi-element soil geochemical data coincide with the projected trend of the known NW-SE orientated structures.
Terms of Frost Project Option Agreement .
Pursuant to the terms of the Option Agreement, Cypress has been granted an option to earn a 100% interest in and to the Frost property for total consideration of USD$30,000, the issuance of 250,000 shares of Cypress and exploration expenditures on the Property totaling USD$350,000 over the four-year term of the Agreement. The Property is subject to a 2% net smelter return royalty ("NSR") in favour of the Optionor. The Company may purchase, at any time, one-half of the NSR (1%) for the total consideration of USD$500,000.
In order to maintain the Option in good standing, Cypress shall;
- Make a cash payment of USD$5,000 and issue 50,000 share of the Company upon acceptance of this Agreement by the TSX Venture Exchange.
- Make a cash payment of USD$5,000 and issue 50,000 share of the Company on the first anniversary date of this Agreement.
- Make a cash payment of USD$10,000 and issue 75,000 share of the Company on the second anniversary date of this Agreement.
- Make a cash payment of USD$10,000 and issue 75,000 share of the Company on the third anniversary date of this Agreement.
- Expend not less than USD$350,000 on exploration and/or development of the Property at any time before the date which is four years from the date of TSX Venture Exchange approval.
Robert Marvin, P.Geo., CPG, Exploration Manager for Cypress Development Corp. is the Qualified Person as defined by National Instrument 43-101 and has approved of the technical information in this release.
About Cypress Development Corp.:
Cypress Development Corp. is a diversified precious and base metals exploration and development company with properties in Red Lake, Ontario, Canada, and in Nevada and Oregon, U.S.A. The Company has approx. 15 million share outstanding.
To find out more about Cypress Development Corp. (TSX-V: CYP), visit our website at www.cypressdevelopmentcorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
DONALD C. HUSTON
For further information contact myself or:
Cypress Development Corp.
Toll Free: 800-567-8181
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
Suite 1610 - 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4
Source:Cypress Development Corp.