Jindalee (ASX:JRL) boosts lithium resource to 21.5Mt LCE at McDermitt, ‘the largest US lithium deposit’

Highlights

• Jindalee Resources is trading higher on a material upgrade to the MRE for its wholly owned McDermitt Lithium Project in the US.
• The combined Indicated and Inferred Mineral Resource inventory stands at 3.0 billion tonnes at 1,340ppm Li for total of 21.5 Million tonnes Lithium Carbonate Equivalent (LCE) at 1,000 ppm cut-off grade.
• The company suggests that McDermitt is now the largest lithium deposit in the US by contained lithium in MRE.
• JRL is eyeing further drilling and bulk sampling with an application for an Exploration Plan of Operation (EPO) submitted mid-January 2023.

Jindalee Resources Limited (ASX: JRL) has released an updated mineral resource estimate (MRE) for its US-based lithium project, generating from a drilling program completed last year.

The combined Indicated and Inferred Mineral Resource Inventory stands at 3.0 billion tonnes at 1,340ppm lithium for total of 21.5 million tonnes (Mt) Lithium Carbonate Equivalent (LCE) at 1,000 ppm cut-off grade.

The update represents: 

• Total Contained LCE up 62% from 13.3 Mt to 21.5 Mt
• Total Indicated LCE up 131% from 4.8 Mt to 11.1 Mt
• Indicated now 52% of Total LCE from 36% in 2022

By contained lithium in MRE, McDermitt is now the largest lithium deposit in the US, suggests the company.

The company wholly owns the McDermitt Lithium Project in Malheur County located on the Oregon-Nevada border.

Summary of 2023 McDermitt Mineral Resource Estimate at the reporting cut-off of 1, 000ppm (Image source: JRL update)

Comparison of 2022 and 2023 McDermitt MRE at the reporting cut-off of 1,000ppm (Image source: JRL update) 

2022 drilling and McDermitt MRE overview

The MRE upgrade is based on the infill and extensional drill program completed across the project in 2022. During the campaign, the company completed 10 diamond and 11 reverse circulation holes to boost confidence in the mineral resource enabling conversion of Inferred Mineral Resource to Indicated, as well as extending the deposit to the west.

The campaign delivered significant widths of lithium mineralisation.

Major highlights from the 2022 program (Data source: JRL update)

Following the completion of the 2022 drill program, the company engaged H&S Consultants Pty Ltd (HSC) to update the McDermitt MRE.

Jindalee highlights that the material uplift in confidence of the Mineral Resource from the 21 holes drilled in 2022 is a result of the confirmation of the grade continuity that is characteristic of this style of lithium mineralisation.

Jindalee advancing with metallurgical testwork

The company is progressing with studies on optimising the most cost and energy efficient flow sheet for McDermitt. As of now, alkali salt (sulphation) roasting and sulphuric acid leaching of both whole or beneficiated ore are the main processing routes for sediment-hosted lithium deposits.

The company has received encouraging outcomes from the acid leach testwork as well as ore alkali salt (sulphation) roasting testwork on McDermitt ore.

(Data source: JRL update)

What’s next at McDermitt?

Jindalee is planning to undertake further drilling and bulk sampling across the project, for which it has already submitted an Exploration Plan of Operation (EPO) with the Bureau of Land Management (BLM) mid-January 2023.

Also, the company is working with experienced external consultants to assess metallurgical testwork undertaken so far at the project. The goal is to determine the optimal processing route for the project later in the March 2023 quarter.

It is to be noted that the environmental baseline and cultural studies were wrapped up at the project in 2022.