Published On: February 23rd, 2023
Jindalee Resources Limited (ASX: JRL) (Jindalee, the Company) is an Australian exploration company with Tier 1 lithium deposits in its portfolio in the United States. The Company’s core goals are to discover world-class mineral deposits and generate shareholder wealth. The United States is one of the largest marketplaces for lithium demand, and Jindalee is a leading company committed to help meet future demand. The Company is focussing efforts into developing its McDermitt lithium deposit. Jindalee Resources was listed on the Australian Securities Exchange (ASX) on 11th July 2002 and raised AUD 2.70 million. Now, it is a pure-play United States lithium company.
In June 2018, the Company acquired McDermitt and Clayton North, two lithium sediment projects in the United States. Both projects are 100% owned by HiTech Minerals Inc., a wholly owned, US-based subsidiary of Jindalee.
Figure 1: Jindalee Lithium Projects In United States
Several factors attracted the Company’s interest in these projects including:
- Potentially scalable mineralisation style
- Manageable to low-cost mining and processing
- Mining-friendly jurisdiction
- Opportunity to develop the projects to create significant value for the Company
The McDermitt Lithium Project is a flagship Tier 1 asset located in Malheur County, SE Oregon, United States, that was acquired after an extensive search. It is currently the second-largest lithium deposit in the country. In September 2018, Jindalee completed an initial four-hole drilling program. From September 2018 to December 2021, Jindalee completed 41 holes (22 RC and 19 Diamond) at McDermitt. The program successfully infilled and upgraded the Mineral Resource and outlined resource extensions.
Figure 2: Schematic section across the McDermitt deposit with significant intercepts greater than 1,000 ppm
In July 2022, Jindalee announced an updated Indicated and Inferred Mineral Resource for the Project. Resources are continuously growing with every drilling program.
Figure 3: McDermitt Mineral Resource
Jindalee Resources Limited plans to continue to advance and de-risk the McDermitt Project through 2023 via:
- Ongoing metallurgical studies to optimise the flowsheet
- Updating the 2021 preliminary scoping study to include new MRE and the latest metallurgical results
- Building on environmental and cultural studies completed in 2022
- Advancing the Plan of Operations (PoO) lodged January 2023
- Increasing engagement with US investors, local community and potential partners
The Clayton North project is 23 kilometres north of Silver Peak, the only producing lithium operation in the United States. In the claim area, the extensive areas of lithium-bearing claystone outcrop have returned assay results of up to 930 ppm Li in sampling. Samples of the oxide material were submitted for initial metallurgical test work to test the amenability of the lithium-bearing clays to simple leaching. Six diamond drill holes were completed, with the best results being returned from a fine-grained siltstone and claystone unit intersected in hole CNDD012, including:
- 6.1m @ 1093 ppm Li from 24.4m incl. 3.05m @ 1205 ppm Li from 27.4m, and
- 11.2m @ 1006 ppm Li from 33.6m
Figure 4: Location of Clayton North
Jindalee Resources Limited and POSCO: A joint research collaboration on McDermitt Lithium Project
On 13th February 2023, Jindalee Resources Limited (ASX: JRL) and Korean conglomerate POSCO Holdings Inc. (NYSE: PKX) (POSCO) signed a Non-Binding Memorandum of Understanding (MOU). The MoU enables the two companies to undertake joint research designed to optimise the flowsheet for processing ore from Jindalee’s McDermitt Lithium Project. Jindalee will provide a sizable composite sample from McDermitt for testing at POSCO’s research facility in Korea. The test work is expected to take approximately six months at AUD 2 million, funded entirely by POSCO. Furthermore, POSCO and Jindalee will jointly evaluate the commercialisation of the Project following the completion of the test work. Results from test work are expected by mid-2023.
POSCO Holdings Inc. (NYSE: PKX) is a leading Korean conglomerate with a market capitalisation of USD 19.6 Billion. The company has interests in steel, chemicals, construction, trade, and food. Recently, it identified new growth opportunities in rechargeable battery materials and hydrogen.
Jindalee’s Commodity Portfolio:
Jindalee also provides indirect exposure to their shareholders to a range of commodities through its investee companies, including gold, nickel, lithium, magnesite, and iron ore (through Dynamic Metals Ltd, ASX: DYM) and uranium (through Energy Metals Ltd, ASX: EME).
The Company understands its duty towards the planet. Jindalee’s sustainability efforts include:
- Supporting the decarbonisation movement through the development of critical minerals projects essential for the transition from fossil fuels to electrification
- Commitment to responsible exploration practices
- Minimising disturbance footprint on the environment
- Engaging with local communities by sponsoring community events and sports teams
- Sponsoring postgraduate university studies
- Employing local people and services to achieve mutually beneficial outcomes
Executive Director and CEO of Jindalee: Lindsay Dudfield
Figure: 8 Mr Lindsay Dudfield, Executive Director and CEO
Mr Dudfield is a geologist with over 40 years of experience in multi-commodity exploration, primarily in Australia. He has held senior positions with the mineral divisions of Amoco (1977-1979) and Exxon (1980-1987) and actively delineated the Scuddles zinc copper mine at Golden Grove, WA.
Mr Dudfield has been responsible for managing Jindalee Resources since its inception. In 1987, he became the founding Director of Dalrymple Resources NL. and led the next eight years helping the company acquire and explore Dalrymple’s properties, leading to several greenfield discoveries.
Mr Dudfield is a member of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, the Geological Society of Australia, and the Society of Economic Geologists. He is also a Non-executive Director of Energy Metals Limited, Dynamic Metals Limited and Alchemy Resources Limited.
Jindalee’s Investor Outlook & Financials
- The Tier 1 McDermitt lithium deposit has the potential to create significant wealth for shareholders. Experienced management with a history of success, targeting world-class deposits
- Tight capital structure with 57.4 million shares issued provides substantial leverage for shareholders on success
- Consists of a solid technical team with a track record of success
- Well-funded to achieve its objectives with a strong cash position of AUD 8.69 million and cash equivalents as of 30th June 2022
- Jindalee Resources stock stands at AUD 2.62 per share with a 52-week range of AUD 1.70 – AUD 4.99
- Net assets of AUD 18.27 million as of 30th June 2022