Jindalee Resources (ASX:JRL) capitalising on promising trends in US lithium market

Highlights

• Jindalee Resources Limited (ASX:JRL) is developing the McDermitt Project, which has huge upside with inferred and indicated mineral resources already estimated.
• The Company’s McDermitt Project has the potential to materially change US lithium supply dynamics.
• Jindalee is undertaking appropriate measures to reduce its environmental impact while developing McDermitt.

Jindalee Resources Limited (ASX:JRL) has been aiming to make the grade in the lithium industry by tapping a range of opportunities presented by its McDermitt Project in the US. The Company remains optimistic that its flagship McDermitt Project is suitably positioned to deliver a steady, large domestic supply of lithium, helping the US to achieve its net-zero carbon emission target by 2050.

Amidst positive market dynamics in the US lithium sector, Jindalee is advancing the development of McDermitt, which has tremendous upside with inferred and indicated mineral resources already estimated. Recently, the Company reported huge lithium intercepts at the McDermitt Project, which comprise some of the thickest intercepts of lithium mineralisation reported to date.

Read More at Strong market response to Jindalee Resources’ latest assay results at McDermitt

As per Jindalee, McDermitt has the potential to materially change US lithium supply dynamics, given its close proximity to major lithium customers. The Company is buoyed by growing bipartisan political support in the US for establishing domestic supply chains of critical minerals. It is undertaking appropriate measures to minimise its impact on the environment while developing McDermitt.

Growing bipartisan support

Jindalee is encouraged by the latest announcements from both sides of US politics expressing concern with the current dependence of the US on external sources of critical minerals (including lithium). The Company believes this support could have positive implications for the development of McDermitt.

Do Not Miss: Three Factors Boosting Jindalee Resources' Growth Prospects in US Lithium Market

Recently, Senator Wyden (Democrat, Oregon) proposed legislation to support the production and processing of critical minerals that would expand domestic manufacturing, ease reliance on foreign sources of oil and gas, and reduce imports of critical minerals. The legislation has been introduced amidst Russia’s unprovoked invasion of Ukraine, which has highlighted the importance of reducing the US’ dependence on foreign imports.

The legislative proposal was followed by a bipartisan letter to President Joe Biden jointly signed by Senators Risch, Murkowski, Manchin, and Cassidy, urging the President to invoke the Defense Production Act to ramp up the production of battery materials, including lithium.

Social responsibility in the US

McDermitt is situated on open rangeland in Southeastern Oregon, administered by the BLM (Bureau of Land Management). The area is sparsely populated and holds a long history of both mining and ranching.

Jindalee has taken its responsibility to the environment and the local community seriously and employed a dedicated team of highly experienced environmental consultants to help manage all aspects of its licence to operate.

The Company has undertaken the following measures to reduce the environmental impact:

• Restricting drilling programs to autumn & summer months to reduce the impact on fauna and ranching activities
• Drilling mostly on existing cleared areas (fencelines, tracks) wherever possible
• Cultural resource surveys carried out before starting drilling
• Preference given to local contractors & services, where available
• Holes plugged on completion & disturbed areas rehabilitated and re-seeded
• Building internal capacity for community engagement in the US

McDermitt – 2022 Forward Planning

Jindalee shares closed the trading session at AU$3.00, with a rise of 0.33% on 28 March 2022.