- Shares of Jindalee Resources Limited (ASX:JRL) have climbed by over 87 per cent in 2021 till date.
- Jindalee is tapping opportunities in the US lithium market, which relies on imported lithium and produces ~1.2 per cent of the world’s lithium.
- The Company has announced encouraging assays from the McDermitt drill program and expects to receive final assay results shortly, followed by an updated resource and an ETR.
No doubt, Jindalee Resources Limited (ASX:JRL) has marked an impressive entry into 2021. From achieving high-grade assay results from the McDermitt lithium project to completing an Exploration Target Range (ETR) at the Lyons River magnesite deposit, Jindalee has been ticking all the right boxes so far.
Backed by these remarkable developments, at current price of $1.48, Jindalee's share price has soared by over 87% in 2021 till date.
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Jindalee is an Australia-based mineral exploration company, which boasts a strong, diverse portfolio of wholly owned projects in Australia and the US. The Company’s projects are prospective for a range of minerals, including lithium, gold, nickel, iron ore and magnesite.
At present, the Company is actively progressing with the development of its flagship project in the US, the McDermitt Lithium Project. The substantial McDermitt project has huge upside, with inferred mineral resource estimated for the project.
Tapping Opportunities in Lithium Market
The looming supply shortage of lithium amid burgeoning demand for electric vehicles (EVs) is unfurling a promising opportunity for Jindalee in the lithium space. As per the Company’s latest presentation, every 1 per cent of EV penetration of the global passenger car market adds 50 – 70,000 tonnes of LCE demand or about 30 per cent of the current lithium market.
According to Jindalee, the US is an ideal location to advance lithium projects as the nation majorly relies on imported lithium and produces ~1.2 per cent of the world’s lithium. Furthermore, lithium continues to receive robust government support in the US, owing to its supply shortage.
The Company considers Joe Biden’s election victory as very positive for the US lithium market. The US President has pledged to achieve zero emissions by 2050. Moreover, the Biden administration has committed to spending USD 2 trillion on EV infrastructure as well as other carbon reduction projects. The demand for lithium is likely to rise substantially with the uptake of lithium-ion batteries for energy storage and EVs.
The US is gearing up for the New Energy Revolution with large expansion/operating and construction of new battery factories. US automaker Tesla is moving to source as well as refine its lithium from local deposits.
Significant Results from McDermitt Drilling Program
Recently, Jindalee announced initial assays from its 15-hole drill program at the McDermitt project. The Company unveiled the assay results from 10 holes completed under the drill program, with the remaining assays expected in mid-February. The assays confirmed substantial thicknesses of lithium mineralisation intersected in all drill holes.
The figure below summarises the key assay results received:
Jindalee is awaiting the remaining results from the drill program, which will be incorporated into the project database. Besides, the Company is continuing with additional metallurgical optimisation and engagement with potential partners and investors in the US.
Jindalee believes that the large sediment-hosted deposits like McDermitt hold the potential to make the US market self-sufficient in lithium. The Company looks forward to an updated resource and an ETR in April, followed soon after by a potential scoping study. Moreover, the Company plans to submit the 2021 drilling program for permitting in April.