Jindalee (ASX:JRL) shares welcome excellent intercepts at McDermitt lithium project

Highlights

• Jindalee has shared excellent assays from first five reverse circulation holes drilled as part of the 2022 drilling at McDermitt.
• The five holes were directed towards increasing confidence in the Inferred Mineral Resource.
• Assay results from 12 holes are pending.
• The Company expects a steady flow of assay results through to December.

Shares of Jindalee Resources Limited (ASX:JRL) jumped over 7% to AU$2.410 in the early hours of 11 November 2022 after the company released an update concerning its McDermitt Lithium Project. 

The ASX-listed lithium space player has received assay results from the first five reverse circulation (RC) holes drilled at the McDermitt project, indicating excellent shallow intercepts.

These holes are part of a 21-hole drilling program targeting the infill and extension of the Mineral Resource Estimate (MRE) for the company’s 100%-owned SE Oregon, USA, located lithium project.

Overview of the 2022 drilling campaign

The 2022 drilling campaign at McDermitt is focused on 21 holes comprising 10 diamond and 11 RC holes. Of the total, the company has received assays for 5 RC holes and from diamond holes MDD020 to MDD023.

The program is aimed at extending the previously reported Mineral Resource Estimate (MRE) of 1.82 Bt @ 1,370 ppm Li for 13.3 Mt Lithium Carbonate Equivalent (LCE) at 1,000ppm cut-off as shown below:

(Source: Company update)

Along with the above-stated objective, as per the company, the drilling program is also designed to:

• Increase confidence in the Inferred Mineral Resource and convert it to Indicated status
• Determine the extent of lithium mineralisation across the project

As per the company, all five RC holes are located within the current Inferred Mineral Resource; however, they lie outside the current Indicated Mineral Resource.

(Source: Company update)

Latest RC drill hole outcomes

The recent assay results follow the significant intercepts received from the first four diamond holes (MDD020, 21, 22 and 23) as announced by the company in September and October.

The results from the five (RC) holes are summarised below:

Hole ID: MDRC024- A 68.6-metre interval @ 1669 ppm lithium, starting from the surface (including an interval of 13.7 metres @ 2455 ppm lithium, starting from a depth of 35.1 metres).

Hole ID: MDRC025- A 50.3-metre interval @ 1512 ppm lithium, starting from the surface (including a 6.1-metre interval @ 2100 ppm lithium, starting from a depth of 29 metres).

Hole ID: MDRC027- A 13.7-metre interval @ 1554 ppm lithium, starting from 9.1-metre depth (including a 4.6-metre interval @ 2172 ppm lithium, starting from a depth of 16.8 metres).

For holes with ID MDRC031 and MDRC033, the results are:

The company is expecting a steady flow of assay results through to December for the remaining 12 holes.