Jindalee Resources’ McDermitt Lithium Project Is Now The Largest Lithium Deposit In The United States

Jindalee Resources’ McDermitt Lithium Project is Now the Largest Lithium Deposit in the United States

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Jindalee Resources Limited (ASX: JRL) (Jindalee, or the Company) announces a significant update on its 100% owned US-based McDermitt Lithium Project.

Location Map of McDermitt Lithium Project

Figure 1: Location Map of McDermitt Lithium Project

In the 2022 drilling program, Jindalee Resources completed 21 holes, 10 diamond and 11 Reverse Circulation (RC) at McDermitt to infill and extend the Mineral Resource Estimate (MRE). Substantial lithium mineralisation intercepted from the holes includes:

  • MDD025: 182.2m @ 1197ppm Li from 21.4m
  • MDD028: 131.6m @ 1219ppm Li from 21.9m
  • MDRC024: 68.6m @ 1669ppm Li from 0m (surface)
  • MDRC025: 50.3m @ 1512ppm Li from 0m (surface)

Compared to the 2022 estimate, the 2023 combined Indicated and Inferred MRE estimate shows a significant difference, with a 65% increase in tonnage, and 62% increase in contained lithium, and a 2% decrease in grade.

Figure 2: Comparison of 2022 and 2023 McDermitt Mineral Resource Estimates

The McDermitt Project now holds a combined Indicated and Inferred Mineral Resource Inventory of 3.0 billion tonnes with a grade of 1,340 ppm Li for 21.5 million tonnes of Lithium Carbonate Equivalent (LCE) at the cut-off grade of 1,000 ppm. This makes the McDermitt resource the largest lithium deposit in the United States by contained lithium in resource.

Jindalee Resources engaged H&S Consultants Pty Ltd (HSC) to update the MRE. 62 drill holes: 33 RC and 29 Diamond holes were used to estimate the mineral resource.

Moving Forward

Jindalee Resources focuses on advancing and de-risking the McDermitt Project through 2023.

  • Environmental and cultural studies at McDermitt were completed in 2022, and an EPO (Exploration Plan of Operation) application was submitted to the Bureau of Land Management (BLM) to permit further drilling and bulk sampling
  • Jindalee has engaged expert consultants to assist in metallurgical studies to optimise the processing route for the McDermitt Project in March 2023

Industry Growth Outlook

In its presentation, released on February 7th, 2023, the Company highlighted that electric vehicles (EVs) and batteries are the two main factors behind the lithium demand (Price) acceleration. In the one-year duration between 1st half of 2021 to 1st half of 2022, statistics of electric vehicles (EVs) and batteries changed drastically:

Approximately 602 kilotons of Lithium Carbonate Equivalent (LCE) are required to build 21 gigafactories with 703 GWh capacity by 2031 in the United States alone.

Figure 3: Forecasted Lithium Carbonate Equivalent (LCE) Demand from US-based Gigafactories

Investor Outlook

  • Jindalee Resources primarily focuses on developing its McDermitt Tier 1 Lithium Deposit to create wealth for its shareholders.
  • Being the largest lithium deposit in the US, the McDermitt Project shows the potential for a long-term supply of lithium to meet the rapidly growing US battery manufacturing and electric vehicle (EV) industry demand
  • Jindalee’s tight capital structure, with only 57.4 million issued shares
  • Jindalee Resources stock was traded at AUD 2.45 per share price on February 27th, 2023, with a market capitalisation of AUD 141 million

Visit the Company website for more details on the latest updates.


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