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Jindalee Resources achieves key milestones at McDermitt Lithium Project

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The estimation of a maiden resource and a substantial exploration target surrounding the resource have confirmed McDermitt as one of the largest lithium deposits in the US.

Jindalee Resources Ltd - Jindalee Resources achieves key milestones at McDermitt Lithium Project

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Price: 0.345 AUD

ASX:JRL
Market: ASX
Market Cap: $13.41 m
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Jindalee Resources Limited (ASX:JRL) is continuing to focus on its 100% owned McDermitt Lithium Project in the US after confirming excellent results from the 2019 drill program.

The high-grade lithium results have resulted in a significant increase in the exploration target range (ETR) at McDermitt and the estimation of a maiden inferred resource.

Jindalee also lodged an Exploration Licence application at Gruyere North, immediately along strike from the 5.78 million ounce Gruyere gold deposit being mined by Gold Fields Limited (NYSE:GFI) and Gold Road Resources Ltd (ASX:GOR).

McDermitt Lithium Project

On 13 November, Jindalee confirmed that the ETR at McDermitt has increased to 2.2-4 billion tonnes at 1,200-1,600ppm lithium (at 1,000ppm lithium cut-off), more than six times larger than the 2018 ETR at the same cut-off.

On 19 November Jindalee announced a maiden inferred resource of 150 million tonnes at 2,000 ppm lithium (0.43% lithium oxide) at 1,750 ppm lithium cut-off.

The estimation of a maiden resource and substantial ETR surrounding the resource have confirmed McDermitt as one of the largest lithium deposits in the US.

Despite recent softening of lithium prices, industry fundamentals remain strong with accelerating demand continuing to be driven by regulatory actions and consumer demand.

The US currently imports most of its lithium for Li-ion battery construction and Jindalee believes that McDermitt has the potential to provide a significant, long life supply of lithium for both domestic consumption and export.

Jindalee will continue to advance and de-risk McDermitt through 2020 with activities planned including additional metallurgical test work, commencement of preliminary permitting activities and further drilling to build on the mineral resource and ETR.

North Gruyere (Jindalee 100%)

Late December 2019 Jindalee advised that it had applied for an Exploration Licence (E38/3461) along strike of the Gruyere gold deposit, situated 160 kilometres northeast of Laverton, WA.

E38/3461 is uncontested and abuts the Gruyere deposit, which is jointly owned by Goldfields and Gold Road Resources.

The Gruyere mine is expected to produce 300,000 ounces of gold per annum for the next 12 years.

Jindalee plans to collate historical exploration results and initiate negotiations with the traditional owners and is aiming to commence exploration as soon as E38/3461 is granted.

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Jindalee Resources' Lindsay Dudfield talks plans to unlock value at its...

Jindalee Resources Ltd's (ASX:JRL) Lindsay Dudfield discusses with Proactive London's Andrew Scott the plans to advance its McDermitt US lithium project. Back in June they received encouraging metallurgical test-work results from the project which confirmed an increase in lithium head grade...

1 day, 8 hours ago

2 min read