Jindalee Lithium (ASX: JLL) marks significant advancement at McDermitt in 1HFY24 - Kalkine Media

Highlights

• Anticipated exploration target at McDermitt falls in the range of 300 – 700 million tonnes at 1,100 – 1,400 ppm lithium and surrounds and abuts the 2023 MRE.
• The preliminary metallurgical results indicated that samples are averaged at 0.179%, 34% more than present indicated and inferred resource grade of McDermitt.
• McDermitt’s pre-feasibility study (PFS) is progressing well, with multiple initial deliverables received by the end of latest half.
• In 1HFY24, the company raised AU$3.5M through public offer and AU$0.6M via a priority offer.

Jindalee Lithium Limited (ASX: JLL) is an ASX-listed mineral exploration and development company which owns McDermitt lithium Project, located in the USA. During the half-year, ended 31 December 2023, the company was focused on advancing its flagship project, McDermitt.

In1HFY24, the company saw two significant additions to its team. Ian Rodger was appointed as chief executive officer with effect from January 2024 and Wayne Zekulich joined the company as chair, effective from 1 February 2024.

Funds boost

In October 2023, the company had announced a capital raise to raise up to AU$5.5 million through combination of public offer and priority offer. The company had received excess application for the public offer of AU$3.5 million, resulting in early closure of the offer. Through the priority offer, the company had raised AU$0.6 million. Directors of the company had applied for additional 175,000 shares, which got shareholder’s approval at annual general meeting which was held in November 2023. The company had undertaken the capital raise to advance activities on its McDermitt project. 

Significant progress across McDermitt in 1HFY24

During the reported period, at McDermitt, the company had released an independently estimated exploration target range of 300 to 700Mt at 1,100 - 1,400 ppm Li. The exploration target shares the boundary with the 2023 MRE and surrounds it.

Material for the MRE extends to distance of 1,200m from the closest hole and ETR extends to distance of 1,500m from the closest hole.

In February 2023, the company had shared the updated MRE at the McDermitt.

Data source: Company update 

Metallurgical testwork at McDermitt

During the latest half, the company had shared the preliminary head assay results for the units selected for the test work (Units 4,6, 8 and 10). The units were selected by Cube Consulting, a leading mine engineering firm, using the MRE geological model of McDermitt.

The results indicated that samples averaged 1,790 ppm Li which is 34% more than the average grade of the existing indicated and inferred resource grade of 1,340 ppm Li. The results highlight the significant potential to mine and process units of higher-grade ore selectively early in mine life.

In November 2023, the company received encouraging outcomes from beneficiation of the samples through attrition scrubbing. 

Data source: Company update 

After the period end, preliminary acid leaching results from the metallurgical testwork were released. Details here.

In January 2024, the company had initiated leaching of a bulk composite to offer lithium in solution for downstream testwork. Moreover, beneficiated samples were transported to POSCO Holdings for testwork, under the Memorandum of Understanding inked with POSCO in February 2023.

Pre-feasibility study progresses at McDermitt

The company had started PFS work in June 2023. In December 2023, JLL shared that further work is going on with US West Coast based engineering company for support works.

In mid-January 2024, the mine planning consultancy was awarded to Cube Consulting.

The company expects that the PFS would continue through mid-2024 and is dependent upon outcomes of metallurgical testwork, site investigations and approvals.

Jindalee is engaging with the US government agencies about the project advancement opportunities. The discussion comprises technical corporation amongst agencies and potential US Government funding.

JLL shares traded at AU$0.78 apiece at the time of writing on 19 March 2024.