Jindalee (ASX: JRL) prepares to fire up drilling at McDermitt Lithium Project, shares jump

Highlights

• JRL is gearing up to start diamond core drilling at McDermitt, the largest lithium deposit in the US by contained lithium with 21.5Mt Lithium Carbonate Equivalent (LCE) in Mineral Resource.
• Alford Drilling has been contracted to conduct the campaign, anticipated to start on 1 November 2023.
• The campaign is expected to provide geotechnical information for the project PFS.

Jindalee Resources Limited (ASX: JRL) has entered into a contract with Alford Drilling from Elko, Nevada, to conduct a diamond core drilling campaign at McDermitt Lithium Project, USA. The campaign would cover five HQ triple tube core holes collared within or located nearby the conceptual Pit Shell 5.

The aim of the drilling program is to generate geotechnical data for the pre-feasibility study (PFS) and to confirm the data gathered from previous reverse circulation drilling. The program is anticipated to begin by next month, and the assay results are anticipated by early 2024. Final go ahead for the campaign from the Bureau of Land Management is yet to be received.

JRL shares trade higher

Share price of JRL jumped by 7.784% to AU$1.80 apiece at the time of writing on 9 October 2023 with a market capitalisation of AU$97.54 million.

McDermitt – a globally significant lithium resource

The indicated and inferred mineral resource inventory at the McDermitt project is highlighted in the table below –

Table source: Company update

By contained lithium in mineral resource, McDermitt is the biggest lithium deposit in the US with 21.5Mt LCE. Read more.

The project sits at the McDermitt Caldera’s northern end, around 35km from TSX-listed Lithium Americas’ Thacker Pass, which has measured, indicated and inferred resources of 19.1Mt LCE. The fully permitted Thacker Pass project is under construction.

Jindalee expects the recent developments at Lithium Americas’ project to have positive implications for its US lithium asset. Lithium Americas and General Motors have entered into Tranche 2 subscription agreement after the former updated on the separation of its Argentinian assets.

Under the development, GM would purchase the firm’s shares to a total value of US$330 million, part of the transaction totalling US$650 million. GM plans to buy 100% of lithium carbonate from the first phase production at Thacker Pass.

Jindalee expects to finalise McDermitt PFS in the first half of 2024.