- The shares of Jindalee Resources Limited (ASX:JRL) have produced a return of over 330 per cent in 2021 so far.
- The Company has been making remarkable progress at its flagship McDermitt lithium project this year.
- Jindalee has lodged permits for drilling at the McDermitt project with the government authorities, with drilling likely to start in the September quarter.
Australia-based mineral explorer Jindalee Resources Limited (ASX:JRL) has been making fast-paced progress at its flagship McDermitt lithium project this year. From reporting exciting metallurgical results to announcing an updated Mineral Resource Estimate (MRE), the Company has achieved several significant milestones with regards to the McDermitt project in 2021.
On the back of these promising developments and positive market trends in the lithium space, Jindalee’s share price has rallied by about 330 per cent in 2021 so far. This is much higher than a share price return of about 158 per cent recorded last year. Isn’t it exhilarating?
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Given this backdrop, let us quickly discuss some encouraging developments at the McDermitt project, which contributed to the Company’s share price surge in 2021:
Announced exciting metallurgical results
In February this year, Jindalee announced that metallurgical testwork on samples from McDermitt had demonstrated that attrition scrubbing at 30 per cent solids can increase the lithium content by 60.9 per cent in less than 0.01mm fraction. Moreover, subsequent leaching of the beneficiated samples confirmed lithium extraction rates of 94-97 per cent with 26 per cent less acid consumed per lithium unit compared with similar tests on non-beneficiated ore.
In the June quarter, the Company commissioned additional testwork on a bulk sample of McDermitt ore amassed during the 2020 drill program. The test sample will consist of about 1,000kg of material and will test the processing flowsheet from ore through to the final production of lithium carbonate.
Staked new claims
In March 2021, the Company announced that it had staked 271 new claims at McDermitt, with the Project now encompassing 54.6 sq. km straddling the Oregon-Nevada border. The new claims cover the interpreted strike extensions of lithium mineralised sediments discovered from mapping and recent drilling. In addition, the new claims suggest that future drilling of this region will lead to an additional rise to the scale of the high-grade McDermitt project.
In the June quarter, the US Federal Bureau of Land Management (BLM) advised that the new claims had been granted.
Declared updated MRE
In April this year, Jindalee announced an updated MRE for the McDermitt project of 1.43 Bt @ 1,320ppm Li (0.28% Li2O) at 1,000ppm Li cut-off grade. At updated MRE, the McDermitt is by far the largest lithium deposit in the US by contained lithium in Mineral Resource.
The cut-off grade for reporting of the Mineral Resource was lowered from 1,750ppm in 2019 to 1,000ppm in 2021 due to the promising results received from metallurgical test work. This significantly bolsters confidence in the ability to lower operating costs which impacts directly and positively upon the reasonable prospects for eventual economic extraction.
Additionally, the 2021 MRE and the material surge in contained lithium underscore the significance of McDermitt as a prospective source of future supply to the rapidly growing battery manufacturing industry of the US.
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Jindalee has lodged permits for drilling at the McDermitt project with the government authorities, with drilling likely to start in the September quarter. The program is designed to upgrade and extend the current Mineral Resource at McDermitt and will maximise resource conversion while minimising the disturbance footprint.
Meanwhile, metallurgical testwork (beneficiation, leaching and purification) on a bulk sample of ore from McDermitt has also been commissioned. The mining, engineering, and geotechnical components of a scoping study are also underway, with outcomes to be announced in the September quarter.
Jindalee shares are trading at AU$3.39 as of 12:50 PM AEST.