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Jindalee Resources' McDermitt Lithium Project strategically placed to capitalise on US drive for domestic supply

Last updated: 09:45 19 Nov 2020 AEDT, First published: 08:32 19 Nov 2020 AEDT

Snapshot

Jindalee is highly encouraged by the strong bi-partisan US Government support for the development of large, strategic lithium projects like McDermitt.

Jindalee Resources Ltd -

Jindalee Resources Ltd (ASX:JRL) is focused on its strategically placed McDermitt Lithium Project in Oregon, USA, and drilling is underway aimed at extending the inferred resource and exploration target with results expected in late December.

The company has an overarching strategy which includes acquiring prospective ground, adding value through low-cost exploration and, where appropriate, introduce partners to assist in funding further progress or fund this activity via a dedicated company in which Jindalee retains a significant interest.

On September 30, Jindalee held cash and marketable securities worth around $3.9 million, with a further $620,000 raised in an entitlement offer that closed on October 16.

This funding combined with the company’s tight capital structure provides a strong base for advancing projects held by Jindalee and leveraging into new opportunities.

Location of Jindalee’s Lithium Project’s and US battery factories.

Recent announcements by Tesla Inc (NASDAQ:TLSA) regarding its commitment to invest in ‘localisation’ of its cathode supply chain and production in the US as well as acquisition of the rights to a Nevada sediment-hosted lithium deposit have underlined the importance of very large sediment-hosted lithium deposits.

The McDermitt project is strategically located with respect to Tesla’s Gigafactory.

Tesla is the first automotive OEM to enter lithium production, a move that may be replicated by other US automakers keen to gain greater control over the supply chain for minerals critical for the manufacture of electric vehicles.

Jindalee is also highly encouraged by the strong bi-partisan US Government support being shown for the development of large, strategic lithium projects like McDermitt.

Australian project portfolio

As well as McDermitt, the company has key Australian projects within its portfolio including Leinster Gold-Nickel Project, Widgiemooltha Gold-Nickel-Lithium Project, Joyners Iron Ore JV and Aries Diamond Project.

Of these, the Widgiemooltha is Jindalee’s largest Australian project in the Western Australian Goldfields south of Kalgoorlie.

During the September quarter, the company continued to build on its holding, adding several new tenement applications and consolidating others.

Holding costs remain minimal with most tenements still under application and Jindalee is the sole applicant in almost all cases.

Jindalee holds ground north along strike of Mincor Resources’ (ASX:MCR) exciting Cassini nickel deposit (1.254 million tonnes at 4.0% nickel) and south of Anglo Australian’s (ASX:AAR) Mandilla gold discovery.

Leinster

Auroch Minerals (ASX:AOU) is earning a 70% interest in Jindalee’s Leinster tenements (comprising exploration licence 36/895, 36/910, 36/953 & 37/1370) by spending $500,000 within three years, with Jindalee’s 30% free carried to a decision to mine, based on a bankable feasibility study.  

Late in the quarter, Auroch announced that RC drilling was underway to test nickel targets at the Firefly and Sinclair North prospects, both on E36/8957.

Assay results are pending.

Jindalee Lithium welcomes Ian Rodger as CEO

Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF) interm CEO Lindsay Dudfield tells Proactive the company has appointed experienced mining executive Ian Rodger as chief executive officer. Rodger is due to commence in the role from mid-January 2024, when Dudfield will retire from the interim role....

on 5/12/23