Highlights

• Jindalee Resources’ shares were charging higher by over 15.8% during the early morning trading session on 13 February 2023.
• The company has signed a Non-Binding Memorandum of Understanding (MOU) with POSCO for joint research on its US-based lithium project.
• A large composite sample from McDermitt is planned to be tested at POSCO’s research facility in Korea.
• The metallurgical testwork cost will be covered by POSCO, and the results are expected by mid-2023.

Jindalee Resources (ASX:JRL) shares were trading higher by 15.8% to AU$2.780 in the early hours of the trading session today, 13 February 2023.  

The jump in the stock price followed the release of a company update concerning the signing of a Non-Binding Memorandum of Understanding (MOU) with major Korean conglomerate POSCO Holdings Inc. (NYSE:PKX) (POSCO).

As per the development, POSCO and Jindalee will undertake joint research focused on Jindalee’s flagship McDermitt Lithium Project in the USA.

Joint research on McDermitt Lithium Project   

Jindalee is developing its world-class, Tier 1 lithium deposit in McDermitt, which the company believes holds the potential to materially change US lithium supply dynamics. Leading Korean company POSCO is engaged in the production of lithium. Moreover, the Korean company caters to major US auto maker General Motors with cathode active material supply.

The joint research work by Jindalee and POSCO is aimed at optimising the flowsheet for processing ore from the McDermitt lithium project. The testing work at POSCO’s Korean research facility will be performed on a large composite sample from McDermitt. The testing will evaluate three separate metallurgical processes.

POSCO will fully cover the cost of metallurgical testwork, estimated to be approximately AU$2 million. The testwork is likely to conclude in nearly six months with the results anticipated by mid-2023.

Following the testwork completion, POSCO and Jindalee will work together towards the evaluation of the project commercialisation.

This is what Jindalee’s Chairman Justin Mannolini has to say about the latest development.

The latest arrangement is backed by initial analysis undertaken by POSCO on a smaller sample of McDermitt ore in 2022.

McDermitt Lithium Project

Jindalee Resources wholly owns the McDermitt lithium project, which has a strategic location owing to its close proximity to major lithium customers.

The company has witnessed outstanding results from drilling operations across the project during 2022.

Jindalee expects an updated mineral resource estimate for the project in early 2023.

To know how far Jindalee has progressed on the project developments, read here