Jindalee Resources (ASX: JRL) confirms further resource growth potential at McDermitt lithium project

Highlights

• Jindalee is gearing up to boost resources at its US-based lithium project.
• The recently estimated exploration target range indicates further resource growth potential at McDermitt.
• The exploration target sits at 300-700 million tonnes at 1,100-1,400ppm lithium.
• The exploration target is extrapolated from 62 holes drilled during 2018-2022.

Jindalee Resources Limited (ASX: JRL) has reported that up to 700 million tonnes could be added to its McDermitt lithium project in the United States.  

The updated mineral resource estimate (MRE) unveiled in February 2023 contains a combined inferred and indicated mineral resource inventory of 3 billion tonnes at 1,340ppm lithium for 21.5 million tonnes lithium carbonate equivalent (LCE) at cut-off grade of 1,000 ppm.

Data source: company update

As per the latest update, the independently estimated exploration target range (ETR) at McDermitt stands at 300-700Mt at 1,100-1,400ppm Li.

The exploration target adjoins and surrounds the MRE and is extrapolated from 62 drillholes at McDermitt that were drilled from 2018 to 2022. The recent relogging of McDermitt drilling, along with regional mapping and sampling, has delivered up to 12 distinctive and laterally continuous stratigraphic units which can be tracked across the project area. 

Material from the 2023 MRE extends up to 1200m from the nearest hole, while ETR extends to up to 1,500m from the nearest hole.

Excellent potential for further resource growth

The exploration target is in addition to the 2023 MRE.

Image source: company update

The methodology employed for the ETR was same to that used for the 2023 MRE. For estimation of the ETR and the 2023 MRE, 62 drillholes and 97 density measurements were utilised, with lithium estimated by Ordinary Kriging.

Stratigraphy guided the ETR estimates. It is a major control on the continuity of geology and lithium grade, with material for the ETR limited to 1,500m of the nearest hole. The total mineralisation inventory of the 2023 MRE and the ETR lies within 215m of surface.

Drilling planned at McDermitt

The proposed drilling program entailing five geotechnical holes at McDermitt awaits approval from the Oregon Department of Geology and Mineral Industries (DOGAMI). The proposed drilling campaign has secured a green signal from the Bureau of Land Management (BLM).

The Exploration Plan of Operations (EPO) submitted to the BLM is expected to be approved in the second half of 2024.

Data source: company update

Meanwhile, anomalous lithium assays received from surface sampling indicate excellent potential to locate additional lithium mineralisation, says the company.

JRL shares traded at AU$1.080 midday on 21 November 2023.