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Highlights
- Jindalee wrapped up drilling at the McDermitt lithium project with outstanding results.
- A new mineral resource estimate is expected in early 2023.
- The company has submitted its Plan of Operations application for future work at McDermitt.
- JRL believes that McDermitt is shaping as potentially one of the largest lithium deposits in the United States.
Jindalee Resources Ltd (ASX:JRL) has reported another quarter full of action at its flagship McDermitt lithium project in the United States.
In its recently released quarterly report for the three-month period ended 31 December 2022, the company highlighted outstanding results from the 2022 drilling campaign, completion of its spin-out Dynamic Metals’ listing on the ASX and plans for the upcoming period.
What’s more, the company ended the quarter with AU$5.3 million in cash and securities.
Outstanding drill results from McDermitt lithium project
Jindalee highlights McDermitt as a very large and strategically important domestic source of lithium for the US battery industry.
The company undertook drilling at McDermitt between July and October 2022. The campaign covered 21 holes aimed at infilling and upgrading the resource estimate released in July 2022 and defining the full extent of lithium mineralisation at the project.
The campaign has delivered multiple wide lithium intercepts from shallow depths. The company highlights that broad high-grade intercepts recorded from surface on the eastern side of the deposit and at shallow depths on the western side of McDermitt would convert a large portion of the current Inferred Resource to Indicated status. Moreover, the company expects a substantial boost in tonnages, specifically on the western side of the deposit.
Few of the notable intercepts from 2022 drilling are:
Data source: JRL update
Metallurgical studies make headway
During the reported period, Jindalee updated on the production of Lithium Phosphate (Li3PO4), a potential precursor chemical for producing Lithium Iron Phosphate (LFP) batteries. The company undertook testwork on McDermitt ore by deploying alkali salt roasting method.
Earlier, the company applied initial acid leaching method, delivering rapid lithium extraction rates of 97% (using H2SO4) and 98% (HCl).
To review all testwork undertaken at McDermitt, JRL has roped in an engineering group holding extensive experience with US sediment-hosted lithium deposits. This review is also expected to aid the company in defining the optimal processing route for the project.
The engineering group is expected to share the results later in the March 2023 quarter.
Dynamic Metals lists on the ASX
The quarter saw the successful completion of the spin-out and listing of Dynamic Metals Limited, in which JRL holds 12.5 million shares or 25.5% of the issued capital.
Dynamic Metals, which raised AU$7 million in its IPO, has a highly prospective portfolio in Australia including the Lake Percy Project and an extensive landholding in the Widgiemooltha district. The company highlights that both of these Australian assets are highly prospective for gold, nickel and lithium. Dynamic also holds an 80% interest in the Deep Well Ni-Cu-PGE Project.
With this spin out, Jindalee is now fully focused on advancing its McDermitt Lithium Project.
Jindalee lodged an application for an Exploration Plan of Operation (EPO) with the Bureau of Land Management during mid-January. Once given a green signal, the company plans to significantly increase on-site activity, including infill drilling and bulk sampling.
JRL also expects an updated McDermitt mineral resource estimate later this quarter.
JRL shares traded at AU$2.270 on 1 February 2023, up 8.6% from the last close.
