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Jindalee Resources outlines work program for McDermitt Lithium project in the US

Snapshot

The company believes McDermitt has the potential to provide a significant and long-life supply of lithium for both domestic consumption and export, and make the US self-sufficient in lithium.

Jindalee Resources Ltd - Jindalee outlines 2020 program for its McDermitt Lithium project in the US

Quick facts: Jindalee Resources Ltd

Price: 0.32 AUD

ASX:JRL
Market: ASX
Market Cap: $12.44 m
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Jindalee Resources Ltd (ASX:JRL) has outlined its upcoming work program for the McDermitt Lithium Project near the Nevada-Oregon border, one of the largest lithium deposits in the US.

The company believes the project has the potential to provide a significant, and long-life supply of lithium for both domestic consumption and export, and make the US self-sufficient in lithium as the country currently imports most of its lithium for li-ion battery construction.

Program of work

Jindalee's work program includes:

➢Further drilling to increase resources and exploration target range (ETR);

➢Review and assess new drill data and generate targets;

➢Additional metallurgical optimisation underway to reduce costs (attrition test-work, carbonate flotation);

➢Commence permitting studies for environmental assessment and water rights, including community engagement; and

➢Engage with US investors and potential partners.

 

The McDermitt deposit covers 34 square kilometres and has a maiden inferred mineral resource of 155 million tonnes of 2,000ppm lithium.

Jindalee has two lithium projects in the US – the McDermitt project and Clayton North in Nevada which is at the pre-exploration planning stage.

Encouraging test results

The company said that leach recycling tests had shown excellent lithium recoveries of more than 95% with short residence times, using both sulphuric acid and hydrochloric acid.

Metallurgical test-work using sulphuric acid for leaching has shown that up to 97% of lithium can be leached within two hours at moderate temperature and atmospheric pressure.

Recent test-work recorded ‘very high’ leach rates with 97.9% of the lithium extracted after 30 minutes and 98.7% extracted after 60 minutes, indicating that a leaching residence time of 30 minutes (once the leaching temperature reaches 106°C) may be viable.

Estimated acid consumption was relatively high and further work on removal of acid consuming minerals (such as carbonate) and recycling of acid is planned.

The test-work by SGS confirmed that beneficiation of McDermitt ore through screening can potentially result in a ‘significant’ increase in head grade as a reduction in the volume of material being leached.

It has also shown that leaching with HCI may represent a viable alternative processing route, with further investigation of this concept warranted before selection of the flowsheet for a future development scenario at McDermitt.

A separate metallurgical test-work program has been developed in conjunction with US-based consultants and a total of 44 kilograms of representative samples from holes MDD-006 and MDD-012 (adjacent to hole MDD-008) have been received by the laboratory to be tested to evaluate the potential to:

➢Upgrade the ore by screening; and

➢Reduce acid consumption by removing carbonate prior to leaching with H2SO4.

Fundraising to advance McDermitt

In April 2020, the company raised A$110,000 through a small placement of 366,667 shares at 30 cents each to a corporate sophisticated investor.

The funds raised will go towards advancing its McDermitt project as well as for general working capital purposes.

It noted that the decision to undertake a small raising was based on timing and no underwriting or other fees were paid.

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