- Stock of Jindalee Resources traded close to its 52-week high level on 15th September 2020.
- The surge in JRL share price follows the release of Company Presentation on 14th September, which outlines the significance of its McDermitt Project.
- The Company proposes to drill 21 holes in Q4 2020 at McDermitt, subject to final approvals and funding.
- Jindalee appears well-positioned to pursue its planned exploration endeavours, backed by highly competitive leadership team, unique project generator model and robust project portfolio.
Stock of mineral explorer, Jindalee Resources Limited (ASX:JRL) traded close to its 52-week high level on 15th September 2020, marking an uptick of ~15.294 per cent to $0.490.
The surge in share price follows the release of Jindalee’s Company Presentation for September 2020 on 14th September, which outlines the significance of its flagship McDermitt Project. The presentation also sheds some light on the Company’s project generator model, robust project portfolio and the proposed drilling program at McDermitt.
With that said, let us quickly discuss the key highlights of the Company’s September Presentation in some detail below:
Strong Project Portfolio
Jindalee is engaged in strategic project exploration in Australia and the US via its strong, diverse portfolio of wholly owned projects. The Company’s robust project portfolio carries the potential for lithium, nickel, gold, iron ore and magnesite, while its strategic investments provide an indirect exposure to uranium, nickel, gold, and copper.
Out of all the projects, the Widgiemooltha Project in Western Australia and McDermitt Project in the US are the Company’s large-scale undertakings, where it is investing considerable efforts to create significant value for shareholders.
Widgiemooltha Project is Jindalee’s 1000 sq. km wholly owned holding in a highly fertile district, with access to excellent infrastructure supporting nearby nickel, lithium, gold, and caesium mines.
Some of the recent discoveries have confirmed the significant potential of the area, comprising:
- Baloo (Au) by Royal Nickel Corporation
- Invincible (Au) by Gold Fields Limited
- Cassini (Ni) by Mincor Resources NL
- Sinclair Zone (Cs) by Pioneer Resources Ltd
While regional targeting study has been completed at Widgiemooltha Project, it is now under the phase 2 development.
Presently, the Company is involved in unlocking value at its substantial US-based McDermitt Lithium Project, where a Maiden Inferred Mineral Resource has already been announced.
Recently, Jindalee also announced ~$1.85 million capital raising to fast-track the exploration and development of its Widgiemooltha and McDermitt projects.
Project Generator Model
The Company’s primary goal is to create wealth for its stakeholders through the identification of top-grade mineral deposits. In line with the objective, the Company has formulated a project generator model, comprising the following components:
- Acquire prospective ground and undertake low-cost, high-value exploration
- Innovative implementation
- Review, update, focus and target
- Build rather than purchase and fund initial value add
- Seek partners to share development risk
- Tight capital structure maximises leverage for shareholders
Significance of McDermitt Project
McDermitt Project is one of Jindalee’s two lithium projects located in the US, with the other one being Clayton North. While the Company’s priority is to conduct resource development at McDermitt Project, it is undertaking pre-exploration planning at Clayton North.
McDermitt Project is one of the largest lithium deposits in the US, spanning 34 sq. km or 13miles2 claims area, with a Maiden Inferred Mineral Resource of [email protected],000ppm Li (1,750ppm Li cut-off). The Company believes that the development of McDermitt resource can make the US self-sufficient in lithium, as the nation currently relies on imported lithium.
Below are some key factors that underline the significance of the Company’s McDermitt project:
- Holds potential for long-life low-cost mining operations and aided by the value proposition
- Contains lithium-bearing sediments at surface, which paves the way for long-life, low-cost sources of battery chemicals
- Flat-lying sediments confirmed in all drill holes
- Drilling confirmed the discovery of large lithium deposit
- Soft, low strip ratio and amenable to low-cost mining and crushing
- Delivered excellent metallurgy results
Proposed McDermitt 2020 Program
Jindalee has planned to undertake drilling on 21 proposed drill holes in Q4 2020 at McDermitt, subject to final approvals and funding.
The objectives of the 2020 drilling program are to upgrade existing Inferred Resource to Indicated Resource category, increase Inferred Resources, confirm shallow (0-100m) contiguous mineralisation (0.43% Li2O) and expand substantial Exploration Target Range or ETR. Currently, the ETR of McDermitt Project stands at [email protected] Li (1,750ppm Li cut-off).
The Company intends to review and assess new drill data and generate targets. It is also undertaking additional metallurgical optimisation to lower costs, including carbonate flotation and attrition testwork.
Moreover, the Company is targeting the commencement of permitting studies such as environmental assessment, water rights and community engagement under the 2020 program. It further plans to engage with US investors and potential partners for its strategically significant McDermitt Project.
All in all, Jindalee appears well-positioned to pursue its planned exploration endeavours, backed by highly competitive leadership team, unique project generator model and robust project portfolio. The recently proposed capital raising program is further likely to place it in a strong position to advance the development of its key projects.
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