Jindalee Resources (ASX:JRL) commences PFS on McDermitt, appoints Fluor as lead manager

Highlights

• ASX-listed Li company Jindalee fully owns the Oregon, US located McDermitt Lithium Project
• NYSE-listed Fluor Corporation has been appointed by JRL as the lead manager for a Pre-Feasibility Study on the Project
• The study is expected to complete by the December quarter of this year

Pureplay lithium (Li) company Jindalee Resources (ASX: JRL) has announced the commencement of a Pre-Feasibility Study (PFS) on its McDermitt Project (Oregon, US). EPC and maintenance company Fluor Corporation (NYSE:FLR) has been appointed as the lead manager for this study. Notably, McDermitt -- the largest Li deposit in the country by contained resource -- is considered a "globally significant" Li resource (21.5 Mt LCE), reports JRL.

JRL also mentions that positive developments in the global industry and intense government support are boosting the prospects for the lithium sector. JRL is targeting the December quarter of this year to complete the PFS.

Source: Company update

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Jindalee has started the PFS at the McDermitt Lithium Project. The Oregon, US situated asset of the company is "globally significant" in that McDermitt is stated to be the biggest lithium deposit in the country. Global engineering, procurement, construction company Fluor has been engaged to act as the lead manager. Fluor is a listed entity in the US. Jindalee mentions that the McDermitt PFS will likely be completed by December quarter 2023.

Source: Company update

Industry developments

JRL’s latest update also cites recent progress in the lithium sector that includes the start of construction at Lithium America's nearby Thacker Pass Project. It is pertinent to note that the Project is supported by a US$650 million equity investment by General Motors. There is also an exclusive offtake agreement in place. Besides, the US Department of Energy has announced a conditional loan of up to US$700 million for the development of Ioneer Limited's project in Nevada.

JRL states that there is a growing demand in the US for domestically produced lithium resource and developments like the Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact, which promote minerals that have the ability the support the global energy transformation, are positive for Jindalee's operations and interests.

Metallurgical testwork

In March this year, Fluor's review of McDermitt concluded that acid leaching with beneficiation for upgrading the leach head grade provides the most optimum financial outcome. The review also noted that very large Mineral Resource at Jindalee's Project allows for flexibility in development. It also makes it possible to optimise mining at McDermitt and feed high grade ore early in the mine life.

JRL notes that the completion of a PFS is the "next logical step" for McDermitt Lithium Project. It will enable productive discussions with potential financiers, offtakers, and strategic partners.