Published On: May 1st, 2023
Jindalee Resources Limited (ASX: JRL) (Jindalee, the Company) releases its quarterly activities report with project updates. Mr Lindsay Dudfield, Executive Director & CEO, announces that Jindalee Resources has upgraded its resource estimate for the McDermitt Lithium Project. With a whopping 3 billion tonnes at 1,340 ppm lithium (21.5 million tonnes LCE) at a cut-off grade of 1000 ppm, this makes it the largest lithium deposit in North America by contained lithium. What’s even more interesting is that increase in tonnage is accompanied by an overall 2% decrease in grade and a staggering 62% increase in contained lithium. Following a thorough review of its McDermitt Lithium Project, Fluor Corporation has recommended the implementation of Beneficiation and Acid Leaching as the preferred processing route – a significant milestone for Jindalee Resources Ltd.
Update on Jindalee Resource’s McDermitt Lithium Project
Jindalee Resources Limited recently released an announcement on February 27th, 2023, revealing an updated Mineral Resource Estimate (MRE) for the McDermitt Lithium Project in the US. The revision was made following a successful 21-hole drilling program, which concluded in October 2022.
Figure 1: The location of McDermitt and Clayton North Projects of Jindalee Resources
The drilling program was designed to increase confidence in mineral resources’ accuracy and expand deposits towards the west as part of mining efforts. The ultimate goal was to convert Inferred Mineral Resources to Indicated ones. The program intersected significant widths of lithium mineralisation with impressive results, including:
- MDD025: 182.2m @ 1197ppm Li from 21.4m
- MDD028: 131.6m @ 1219ppm Li from 21.9m
- MDRC024: 68.6m @ 1669ppm Li from the surface
- MDRC025: 50.3m @ 1512ppm Li from the surface
Updates on progress in Metallurgy
Jindalee Resources has captured the attention of the metallurgy world with its cutting-edge methods of extracting lithium from sedimentary deposits like the McDermitt Project. With a relentless drive to uncover more efficient ways of mining, the Company has made significant progress in its pursuit of excellence.
Through dedicated efforts in testing and experimentation, Jindalee has successfully achieved lithium recoveries of over 95% using a sophisticated beneficiation and sulphuric acid leaching process at moderate temperatures and atmospheric pressure. As a result, Jindalee has been able to extract more lithium from the ore samples while reducing acid consumption per lithium unit.
Updates on Review Done by Fluor Corporation
In 2022, Jindalee partnered with Fluor Corporation, a leading engineering, construction, procurement and maintenance firm, to enhance its metallurgical testwork processes. After a thorough review, it was concluded that the acid leach with the beneficiation process is expected to produce the best economic outcome for the project. The analysis also revealed that the acid leaching with beneficiation process delivered the lowest operating costs and best financial outcome, making it the ideal processing route for the McDermitt Project. This review demonstrates Jindalee’s ongoing commitment to refining its processes and investigating efficient ways to extract lithium, underscoring its dedication to producing sustainable, high-quality lithium products. As Jindalee moves ahead with its metallurgy plans, it is well-positioned to emerge as a leading player in the industry.
Figure 2: McDermitt Lithium Project view plan with information about 2023 mineral resources
Update on Jindalee Resources MOU With POSCO
Jindalee recently announced a strategic partnership with the prestigious Korean conglomerate POSCO Holdings Inc. (NYSE: PKX) (POSCO) through a Non-Binding Memorandum of Understanding (MOU) signed in mid-February 2023. The agreement aims to conduct joint research on a large composite sample from McDermitt. This partnership follows POSCO’s initial analysis of a smaller sample in 2022 and aims to optimise the flowsheet for lithium recovery from McDermitt. POSCO is known for its expertise as a critical supplier of active cathode materials to General Motors (GM). The McDermitt ore sample was shipped to POSCO in late March, and the testing is underway. The joint research project will test three different metallurgical processes over six months. After the testwork, both companies will evaluate the possibility of commercialising the project. As a generous gesture, POSCO has pledged AUD 2 million to cover all costs associated with the project. The potential outcome of this partnership is fascinating for both Jindalee and POSCO, as the successful optimisation of the flowsheet could open up opportunities for further collaboration. Jindalee eagerly anticipates the joint research project results and is optimistic about a successful outcome.
Permitting Updates
Jindalee proudly announced that it had taken significant steps towards mitigating risks associated with its project. The Company has undertaken several measures, including drilling programs, metallurgical studies, and environmental baseline and cultural surveys completed in 2022. The survey results have been analysed extensively, and Jindalee is pleased to report that no significant issues were identified.
As part of its continued efforts to move the project forward, Jindalee has submitted an Exploration Plan of Operation (EPO) to the Bureau of Land Management (BLM) in mid-January 2023. The successful approval of the EPO will enable Jindalee to expand its on-site activities, including infill drilling and bulk sampling, bringing the Company one step closer to achieving its strategic goals.
Jindalee Resources Corporate Outlook
The Company has successfully demerged its Australian assets and completed the initial public offering (IPO) of Dynamic Metals Limited (Dynamic). During the December 2022 quarter, Jindalee transferred its Australian assets to Dynamic, which has since been documented on the Australian Securities Exchange (ASX) on January 16th, 2023.
This strategic move allows Jindalee to focus solely on its US lithium operations, notably its flagship McDermitt Lithium Project. Jindalee is committed to continuing its growth trajectory and delivering value to its shareholders.
Investments of Jindalee Resources Limited (ASX: JRL)
Jindalee Resources Limited have recently spun off the Dynamic Metals company, allowing for increased focus on its US lithium assets. As Dynamic’s largest shareholder with 12.5 million shares, Jindalee’s move provides its shareholders with an indirect interest in Dynamic’s projects. Dynamic’s portfolio boasts vast landholding in the highly prospective Widgiemooltha district and the Lake Percy Project, with lithium, nickel, and gold potential. Additionally, Dynamic holds an 80% interest in the Deep Well Ni-Cu-PGE Project.
Likewise, Jindalee maintains around 11.9 million shares in Energy Metals Limited, securing ongoing participation in the progress of the Bigrlyi uranium-vanadium deposit and other uranium ventures pursued by Energy Metals.
Jindalee’s Financial Update
- Jindalee’s exploration expenses for the period amounted to $821k, mainly focused on McDermitt
- Net corporate expenses showed an inflow of $318k after Dynamic IPO costs reimbursement, totalling about $339k
- Directors’ fees, consulting fees, and superannuation comprised the $106k paid to entity directors and their associates in the period
- Jindalee’s cash and listed securities on March 31st, 2023, amounted to around $6.6 million, with 57.4M shares on issue
Mr Lindsay Dudfield, Executive Director & CEO, Jindalee Resources Limited
Jindalee Resources Limited’s CEO, Mr Lindsay Dudfield, is a highly experienced geologist who has spent over 40 years exploring multi-commodity resources in Australia. With a strong background in the mineral divisions of Amoco and Exxon, he played a critical role in the discovery of the Scuddles Zinc Copper mine in Western Australia. He is now responsible for managing Jindalee Resources Limited, where Mr Lindsay has been a board member since 1994. In addition to being a member of several industry associations, Mr Dudfield also serves as a non-executive director for Energy Metals and Alchemy Resources.
Figure 4: Mr Lindsay Dudfield, Executive Director And CEO
Jindalee’s Investors Outlook
- As of April 28th 2023, the Jindalee Resources share price is valued at AUD 2.25 per share
- Jindalee Resources Limited’s (ASX: JRL) market cap is AUD 129 million, showcasing its solid presence in the market
- 52 Week high/low Range: AUD 4.450 to AUD 1.700 per share
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