Jindalee (ASX: JRL) advances PFS on McDermitt lithium project in June quarter

Highlights

• Pre-feasibility study (PFS) on Jindalee’s US-based lithium project has commenced.
• Flour has been appointed as the lead engineer for PFS.
• Updated McDermitt MRE is targeted by the end of the year.
• JRL awaits approval for the Exploration Plan of Operations (EPO) to boost activities across the project.

Australia-based Jindalee Resources Limited (ASX: JRL) is advancing its 100% owned McDermitt Lithium Project.

During the quarter ended 30 June 2023, the company reported significant developments at the US-based project, including the commencement of a pre-feasibility study (PFS), appointment of the study engineer, and review of metallurgical testwork.

The company ended the quarter with AU$8.3 million cash and listed securities.

Updated MRE at McDermitt

In October 2022, a 21-hole drilling campaign was completed, and in late-February this year, the company shared an updated Mineral Resource Estimate (MRE) at the McDermitt project. 

The table summarises the MRE at the project –

Image source: Company update

Preferred extraction process at McDermitt

JRL highlighted that there are two ways to extract lithium from sedimentary deposits – alkali salt roasting and sulphuric acid leaching of both whole or beneficiated ore.

Based on initial work, JRL received encouraging results from both pathways. In late-2022, the company engaged Fluor Corporation (NYSE:FLR) to review the metallurgical testwork conducted at McDermitt. Fluor’s review indicated that acid leaching with ore beneficiation delivered the best financial outcome and the lowest operating costs among the alternatives.

Flour is a global engineering, construction, procurement, and maintenance group.

Flour suggested that further metallurgical testwork at the project would assist in defining the preferred flowsheet for the processing of project ore.

For selecting samples for the suggested metallurgical testwork, in June 2023, Cube Consulting generated conceptual pit shells by employing the company’s MRE geological model.

To know more, click here.

PFS commences at McDermitt

In the latest quarter, JRL informed that the PFS on McDermitt has commenced, and Fluor has been appointed as the lead engineer. The company also appointed Michael Elias as the study manager. Michael has significant experience in managing studies for projects in Australia and overseas.

Approvals to fast-track McDermitt

The US Bureau of Land Management (BLM) notified JRL regarding the completion of review of the Exploration Plan of Operations (EPO). If approved, the plan would allow the company to increase on-site activity.

By late-2023, JRL expects to share an updated MRE for McDermitt. It would include the integrated results of metallurgical testwork with XRD sampling, geological modelling and lithological domaining of the deposit. The PFS is expected to facilitate discussions with off-takers, potential financers, and strategic partners, says Jindalee.

Details here.

JRL shares traded at AU$1.755 at the time of writing on 2 August 2023.