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Jindalee Resources makes giant strides on McDermitt project in FY21

Highlights

  • Jindalee Resources has recently released its annual report for the year ended June 2021.
  • The Company continued to advance and de-risk the McDermitt Project with further drilling and metallurgical testwork undertaken during the period.
  • The Company has planned infill drilling and metallurgical testwork at McDermitt for the fourth quarter of 2021.

Jindalee Resources Limited (ASX:JRL) has recently released its annual report for the year ended June 2021, highlighting key activities undertaken at its US and Australia-based projects. Throughout the financial year, Jindalee continued to systematically assess and de-risk the McDermitt Project via a combination of resource drilling, metallurgical testwork and commencement of early-stage approval processes.

Meanwhile, the past financial year saw the awakening of global resources investors to the reality of the green energy transition, which is gaining pace in the developed world. Investors exhibited an increased interest in the replacement of fossil fuels with renewable energy derived from wind, hydro, and solar sources. This includes energy for transportation in the form of electric vehicles (EVs).

Jindalee Resources’ tapping lucrative opportunities in the lithium market

These market dynamics supported the recent strength in the prices of lithium chemicals and focussed investor attention on potential sources of future lithium supply to the EV industry, including Jindalee’s McDermitt Lithium Project. This, in turn, drove the Jindalee share price higher and facilitated a well-supported A$9m capital raising in the third quarter of the financial year.

Developments at McDermitt project

In the initial months of the last financial year, Jindalee announced positive results from metallurgical testwork conducted at the McDermitt project. The results demonstrated that beneficiation of McDermitt ore holds the potential to result in a substantial increase in head grade and reduction in the volume of material being leached, as well as a reduction in acid consuming minerals.

Moreover, the Company continued to advance and de-risk the McDermitt Project with further drilling and metallurgical testwork undertaken during the period. The metallurgical testwork on samples from McDermitt demonstrated that attrition scrubbing undertaken to produce a beneficiated sample for leaching experiments had improved lithium grades by 60 per cent.

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

In November and December 2020, fifteen Reverse Circulation (RC) holes were completed at the McDermitt project, with substantial thicknesses of lithium mineralisation intersected in all holes.

To Know More About the Drill Program, Click Here

In April 2021, Jindalee announced an updated Mineral Resource Estimate (MRE) of 1.43 Bt @ 1,320ppm Li (0.28% Li2O) at 1,000ppm Li cut-off for McDermitt. Meanwhile, infill drilling completed in 2020 bolstered confidence in geological and grade continuity via the centre of the McDermitt deposit while allowing conversion of part of the current Inferred Mineral Resource to Indicated category.

Related Article: Here’s why shares of Jindalee Resources are on a tear today

Jindalee ‘s Mineral Resource Estimates for McDermitt project

Jindalee also staked 271 new claims at McDermitt during the year, with the Project now covering 54.6km² straddling the Oregon-Nevada border.

Must Read: Jindalee Resources widens footprint at McDermitt, set for MRE upgrade

Later, the Company submitted applications for permitting an extensive RC and diamond drill program to the relevant government agencies. The program is designed to upgrade and extend the current Mineral Resource at McDermitt and maximise resource conversion while minimising the disturbance footprint.

Following the end of the financial year 2021, the Company unveiled encouraging results from the preliminary scoping study on McDermitt, which indicated positive operational and economic outcomes. The infill drilling and metallurgical testwork planned for the fourth quarter of 2021 is expected to enable the release of more detailed Project metrics in 2022.

Read More at Jindalee Resources winds up preliminary scoping study at McDermitt project

Jindalee to continue drilling at the McDermitt project

Other developments

During the period, Jindalee announced an Exploration Target Range (ETR) for the Lyons River deposit, located 6.5km south along strike of the Arthur River deposit. The Lyons River magnesite deposit is a part of its wholly owned Prospect Ridge Project. At a 40% MgO cut-off, the ETR was estimated to be 40-60Mt @ 40-44% MgO.

Good Read: Jindalee Resources (ASX:JRL) Unveils Exploration Target Range for Lyons River Deposit

In July 2021, Jindalee commenced an exploration diamond drill program designed to test the Company’s Clayton North prospect. The first assay results from the program are expected in October 2021.

Jindalee to progress developments at Joint ventures and non-managed projects

Some key senior appointments to the Jindalee team were also announced during the last financial year. Karen Wellman commenced as Jindalee’s Chief Executive Officer in October 2020, while Jimmy Thom was appointed Jindalee’s Exploration Manager in May 2021. Paul Meyer was also engaged to manage exploration and development of the Company’s lithium assets in the United States in May 2021.

In the 2022 financial year, Jindalee’s Australian focus will be squarely on its substantial tenement holding in the vicinity of the Widgiemooltha Dome in Western Australia, which is prospective for gold, nickel and potentially lithium. Programmes of work for reconnaissance drilling have been approved, and exploration is expected to commence in late 2021.

Jindalee shares are trading at A$2.410 as of 12:06 PM AEDT.

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