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Jindalee Resources Cranks Up the Pace of Development at McDermitt in 1H FY21

Summary

  • Jindalee Resources Limited (ASX:JRL) primarily focused on advancing its McDermitt lithium project in 1H FY21.
  • The Company completed 15 RC holes under a significant drill program and continued with metallurgical testwork at McDermitt.
  • Jindalee’s share price soared by more than 128 per cent in the first half of FY21.

Australia-based mineral exploration company Jindalee Resources Limited (ASX:JRL) enjoyed a productive first half of FY21, advancing its core projects in the US and Australia.

During the half-year period, Jindalee’s efforts were primarily focused on its flagship US-based McDermitt lithium project. The Company progressed with the drilling designed to increase McDermitt’s current resource and exploration target and continued metallurgical testwork to de-risk the project further.

Additionally, the Company enhanced its ground position in the Widgiemooltha area and acquired some other projects in Western Australia (WA). Jindalee broadly operated in line with its strategy of identifying and acquiring projects having the potential to transform the Company.

Let us quickly browse through the course of events that defined 1H FY21 for the mineral explorer:

Drilling Program at McDermitt

Jindalee completed 15 reverse circulation (RC) holes at the McDermitt Project in mid-December 2020. The drilling was designed to boost the size of the existing Inferred Resource as well as exploration target and convert a portion of the Inferred Resource to Indicated status.

Early in 2021, the Company received initial assay results from the drilling that confirmed sizeable thicknesses of lithium mineralisation in all holes. The below figure summarises the significant assay results received from the drill program:

Jindalee is waiting for the remaining results from the McDermitt drill program that will be included in the project database.

Metallurgical Testwork at McDermitt

The metallurgical testwork undertaken by the Company returned encouraging results. The outcomes indicated high lithium recoveries from conventional H2SO4 (sulphuric acid) leaching at low atmospheric pressure and temperature.

In August last year, Jindalee reported that beneficiation of McDermitt ore through attrition scrubbing at 20 per cent solids had:

  • improved the lithium content by over 50 per cent in the <0.01mm fraction,
  • removed over 50 per cent of carbonate and about 90 per cent of analcime, with favourable implications for future economic studies.

Lately, the Company unveiled further positive metallurgical results from the project. In the testwork, leaching confirmed high lithium extraction rates from beneficiated samples with reduced acid consumption and attrition scrubbing enhanced lithium grades by 60 per cent.

Read More at Jindalee Resources’ (ASX:JRL) Shares Fly Post Positive Metallurgical Results from McDermitt

Other Developments

During the half-year period, Jindalee added to its current ground position in the Widgiemooltha area and secured further prospective tenements in WA. The WA Mines Department (DMIRS) approved a Programs of Work to test gold targets at Chalice and Mandilla at Widgiemooltha in 1H FY21, with drilling anticipated to start in mid-2021.

Furthermore, the Company appointed Mrs Karen Wellman as the Chief Executive Officer of Jindalee, effective 12 October 2020.

Financial Footing

Jindalee announced significant capital raisings during the half-year period to advance exploration activities at its key projects.

The Company completed a placement of 3.85 million shares at A$0.32 to raise A$1.23 million in September 2020. Besides, the mineral explorer announced a 1 for 20 non-renounceable pro-rata entitlement offer to shareholders to raise A$0.62 million in 1H FY21.

Subsequently, in November 2020, the Company also issued 50k shares following the exercise of 50k unlisted A$0.40 options issued in line with its Employee Share Option Plan.

Jindalee’s cash balance stood at A$1.4 million at the end of the reporting period. With a decent capital position, the Company is in a sound financial position to undertake its exploration endeavours.

Outlook

Looking forward, Jindalee has planned significant activities for the McDermitt project, which include:

  • additional metallurgical testwork on beneficiated samples,
  • upgrading the existing Mineral Resource as well as exploration target estimates before a potential scoping study,
  • initiation of early stage permitting activities, and
  • additional drilling to further expand the scale of the project.

On the back of the noteworthy developments, Jindalee’s share price soared by over 128 per cent in the first half of FY21. The Company’s shares traded at A$1.555 on 4 March 2021.

Interesting Read: Why Jindalee Resources’ (ASX:JRL) Shares Skyrocketed in 2020?

 


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