- Jindalee Resources Limited (ASX:JRL) has recently released an insightful investor presentation on the McDermitt lithium project.
- The McDermitt project holds the potential for long-life, low-cost mining operations.
- The development of McDermitt could assist the US to become self-sufficient in lithium.
Australian-headquartered Jindalee Resources Limited (ASX:JRL) is actively advancing its US-based flagship asset McDermitt lithium project, which holds the potential for long-life, low-cost mining operations. The project is located in Malheur County, situated on the Oregon -Nevada border, about 35km west of the McDermitt town, at the northern edge of the McDermitt volcanic caldera.
McDermitt is a simple outcropping deposit, whose simplified schematic section demonstrates the flat, at-surface and extensive nature of the sedimentary deposit. This is considered to provide a number of significant benefits to a mining scenario. Recently, the Company released an insightful investor presentation covering the key attributes of the McDermitt project.
Let us look at some crucial aspects of the McDermitt project discussed in the presentation:
Proximity to US planned battery output
Jindalee’s projects – McDermitt and Clayton North – are located close to the US battery market. The location of McDermitt to the US battery market is a significant boost and is anticipated to assist with all aspects of project development, including permitting, studies, contracting and financing.
McDermitt is one of the most advanced and the largest lithium deposits in the US. Jindalee strongly believes that the development of McDermitt could assist the US to become self-sufficient in lithium, and thus it is critical to the domestic security of supply. Moreover, the Company sees the US as an ideal location to develop its McDermitt lithium project as the country produces just about 1.2% of the world’s lithium and relies heavily on imported lithium.
Positive preliminary scoping study
A positive preliminary scoping study was completed in mid-September 2021, which confirmed that McDermitt has the potential to produce high-quality lithium carbonate to supply US battery makers for decades. The study outcomes supported the Company’s ongoing focus on de-risking the McDermitt project through metallurgical, drilling, & environmental studies.
Moreover, the study discovered that Jindalee has the opportunity to reduce costs through flowsheet optimisation and supply contracts – enabling the McDermitt Project to be viewed more favourably than many of its peers.
As the current McDermitt project’s JORC resource contains a high proportion of Inferred Resources, complete financial and operational metrics were not able to be released with the study results. However, the indicative parameters demonstrated that McDermitt is a large and valuable project. Jindalee intends to accelerate drilling and seek to increase Resource confidence for future studies.
Jindalee is continuing with additional metallurgical optimisation at McDermitt to further reduce costs. Besides, the Company is progressing talks with the US end-users and strategics.
In 2021-22, Jindalee intends to conduct an extensive resource definition drilling program to upgrade Mineral Resources from Inferred to Indicated category. Currently, the project has significant Indicated plus Inferred Mineral Resource of 1.43 billion tonnes @ 1,320ppm lithium (1,000ppm Li cut-off) with huge upside. In the coming months, the Company also plans to accelerate environmental studies and project permitting for McDermitt.
Jindalee shares are trading at A$2.350 as of 3:13 PM AEDT, with a rise of over 5.8 per cent.