Get Acquainted with Exploration Player, Jindalee and its Robust Project Portfolio

Summary

• Jindalee’s key objective is to generate wealth for its stakeholders via the discovery of top-grade mineral deposits.
• The Company’s dedicated strategy helps it maintain a tight capital structure and ensure stakeholders gain the utmost leverage to any exploration success.
• Jindalee has only conducted one capital raising since its listing in 2002.
• The Company holds a robust and diverse portfolio of projects in Australia and the US, prospective for lithium, gold, nickel, iron ore and magnesite.

Jindalee Resources Limited (ASX:JRL) is a publicly listed exploration company, operating with the key objective of generating wealth for its stakeholders via the discovery of top-grade mineral deposits. Jindalee holds a solid track record of rewarding its shareholders that encompasses priority entitlements to several successful IPOs and payment of a special dividend.

The Company’s primary strategy is to:

• acquire ground with strong mineral potential,
• enhance value via low cost exploration and,
• where necessary, either introduce partners to support in funding additional progress or fund this activity through a dedicated company in which it retains a considerable interest.

By minimising the cash burn rate and postponing the need to raise fresh equity, Jindalee’s dedicated strategy helps it maintain a tight capital structure and ensure stakeholders gain the utmost leverage to any exploration success.

Notably, the Company has only conducted one capital raising since its listing in 2002 and holds strong capital structure, with just about 38.9 million shares on issue, which maximises leverage for its shareholders.

Compelling & Diverse Portfolio of Resource Projects

Jindalee holds a robust and diverse portfolio of projects in Australia and the US, prospective for lithium, gold, nickel, iron ore and magnesite. Many of these projects are being investigated by third parties at zero cost to the Company.

In addition, the Company has an indirect exposure to several other commodities through its investee companies, including gold and copper (via Alchemy Resources Limited) and uranium (via Energy Metals).

In the US, Jindalee holds 100 per cent stake in two lithium sediment projects, McDermitt and Clayton North, located in Oregon and Nevada, respectively. Both these projects are wholly owned by its subsidiary, HiTech Minerals Inc., and were acquired by the Company in 2018.

Besides these projects, the Company has several other projects in Australia, including Widgiemooltha Project, North Gruyere Project, Aries Diamond Project, Joyners Project, and Prospect Ridge Project.

With that said, let us quickly take a look at each of these projects in some detail below:

McDermitt Lithium Project

McDermitt is Jindalee’s US flagship project, with a maiden inferred mineral resource of 155Mt @ 2,000ppm lithium (at 1,750ppm lithium cut-off). Located in SE Oregon, the project was pegged by the Company after an extensive research throughout the western US.

The Exploration Target Range (ETR) of the McDermitt lithium project has been estimated at 160-780Mt @ 1,300-1,600ppm lithium at 1,000ppm lithium cut-off. Estimation of the maiden inferred mineral resource, along with the significant ETR encircling the mineral resource has validated that McDermitt is amongst the largest lithium deposits in the US.

Jindalee believes that the development of McDermitt resource could make the US self-sufficient for lithium mineral.

Clayton North Project

The Clayton North Project is ideally situated close to the only lithium producing operation in the US, at Silver Peak. Sampling by the Company’s geologists has returned assays of up to 930 ppm lithium and broad areas of lithium bearing claystones outcrop inside the claims area.

Widgiemooltha Project

Jindalee has built a significant ground position in the premier Widgiemooltha district over the past few years. While the Widgiemooltha district has a long mining history of several gold, nickel and rare metal mines, substantial exploration potential still remains in the area. This is evident from recent significant discoveries made in the area, including:

• Invincible by Gold Fields Limited (Gold)
• Baloo by S2 Resources, now held by Karora Resources (Gold)
• Cassini by Mincor Resources NL (Nickel)
• Sinclair Zone by Pioneer Resources Ltd (Caesium)

Located in a highly fertile district, the Widgiemooltha project has access to excellent infrastructure, supporting nearby nickel, gold, lithium and caesium mines.

North Gruyere Project

In December 2019, the Company applied for E38/3461, an Exploration Licence situated immediately north-west along strike of the Laverton-based Gruyere gold deposit (total resource of 6Moz). The uncontested Exploration Licence, E38/3461 abuts Mining Lease 38/1267 comprising the Gruyere deposit, which is jointly owned by Gold Road Resources (ASX:GOR) and NYSE & JSE-listed Goldfields.

The Company intends to commence exploration at this project as soon as E38/3461 is granted.

Aries Diamond Project

Jindalee’s Aries project is situated about 270km to the east of Derby, in the central Kimberly region of WA (Western Australia). The project consists of a granted Exploration Licence, E80/5027, along with the diamond rights on an adjoining tenement, E80/5117. The Company has already undertaken an evaluation of historic exploration activities and requires a diamond specific skill set to advance this project further.

For this reason, Jindalee is seeking a partner to develop the project and assess the new targets created by the Company.

Joyners Project

Situated 40km to the west of Wiluna in WA, the Joyners project encompasses the eastern region of the Joyners Find greenstone belt. The Joyners project is a joint venture (JV) between Jindalee and GWR Group Limited, with GWR controlling an 80 per cent stake in two JV tenements - E53/1089 and M53/1078 – and the Company preserving a 20 per cent equity position.

Prospect Ridge Deposit

Jindalee was granted Exploration Licence EL5/2016 for Prospect Ridge Project in September 2016, which comprises the Lyons River and Arthur River magnesite deposits in north-west Tasmania. As per Geoscience Australia, the Arthur-Lyons River area (comprising EL5/2016) includes the third largest inventory of magnesite EDR (Economic Demonstrated Resources) in Australia.

The Company has already reported a JORC 2012 compliant inferred resource of 25Mt @ 42.4% magnesium oxide for the project.

Project Generation Model

Undeniably, Jindalee boasts a portfolio of highly prospective mineral projects, capable of producing lithium, gold, iron ore, uranium, magnesite, and base and strategic metals. The robust financial position (cash and marketable securities of $3.1 million as at 30^th June 2020) and tight capital structure offer a strong base for developing projects, currently held by Jindalee and leveraging into new opportunities.

JRL stock last traded at $0.500 on 25 August 2020, delivering a return of more than 61% in the last one year.