Jindalee holds a strong and diverse portfolio of projects with potential for gold, nickel, lithium, magnesite and iron ore, with several of these projects being explored by third parties at no cost to the Company. Jindalee also provides shareholders with indirect exposure to a range of commodities through our investee companies, including uranium (through Energy Metals), gold and copper (through Kin Mining NL and Alchemy Resources) and nickel and gold (through GME Resources). New opportunities are constantly being reviewed by Jindalee’s geologists with a preference for and track record in generating these projects internally rather than acquiring.
Lithium has the highest electrochemical potential of any metal, an extremely high co-efficient of thermal expansion, fluxing and catalytic characteristics, and low density. Lithium is highly sought after for a range of industrial uses, in particular energy storage where it is a vital component of most popular battery electrolytes and electrodes. A high charge and power to weight ratio makes lithium ideal for applications where weight is a significant consideration (e.g. electric vehicles, mobile phones, hand tools, drones and robots).
Lithium is listed on the critical materials lists for the US Department of Defence and South Korea, is ranked number 15 on the British Geological Survey ‘2015 Risk List’, and is one of 23 commodities in the 2017 ‘Critical Mineral Resources of the US’ report by the United States Geological Survey.
Jindalee recently acquired two lithium projects in the USA, at Clayton North and McDermitt, where lithium is found in extensive clay deposits outcropping at surface. While in Australia, Jindalee’s Widgiemooltha project has potential for pegmatite hosted lithium mineralisation, similar to that supporting the nearby Mt Marion and Bald Hill lithium mines.
Jindalee is targeting the extensions of mineralised trends where previous exploration has been minimal or interpreted to have been ineffective due to transported cover or other impediments. We believe these areas represent the “last frontier” for the discovery of large gold deposits in Australia. Jindalee is currently rebuilding its portfolio of gold projects with recent applications in the Eastern Goldfields and in the Widgiemooltha area. Jindalee also retains indirect interests in gold through its respective shareholdings in Alchemy Resources Limited (ASX: ALY) and Kin Mining NL (ASX: KIN).
Jindalee’s granted Exploration Licence (EL5/2016) at Prospect Ridge covers the Arthur River and Lyons River magnesite deposits, located in north-west Tasmania.
A JORC 2012 resource estimate for the Arthur River deposit was released in October 2017 with estimated Inferred resources of 25Mt @ 42.4% MgO at a cut-off grade of 40% MgO. No resources were estimated for the Lyons River deposit where drilling by Rio Tinto in the 1990’s recorded encouraging intercepts including 200m @ 42.0% MgO.
In joint venture with GWR Group, Jindalee is growing its resource base on the Joyners Find Project, which has been incorporated into the Wiluna West Project, held by GWR. Indicated and inferred resources within the joint venture ground total 7.7Mt at 63% Fe. Recent tenement applications in the Pilbara area have added additional exposure to iron ore at minimal cost.
Jindalee’s landholding in the Widgiemooltha district has continued to grow. The district is highly prospective for the discovery of nickel sulphide deposits and exploration targeting is well underway.
The Company’s holding in Alchemy Resources also exposes shareholders to the potential upside should exploration by Alchemy’s joint venture partner, Independence Group (IGO) prove successful in locating significant base and precious metal mineralisation within Alchemy’s Bryah Basin JV project tenements. These tenements are located to the west and along strike from Sandfire Resources’ high grade copper-gold DeGrussa mine and initial exploration by the joint venture partners has yielded encouraging early results.
The Aries project is located in the central Kimberley region of Western Australia, approximately 270km east of Derby. The project comprises a granted exploration licence E80/5027, an exploration licence application E04/2512, and the diamond rights on an adjacent tenement E80/5117.
The project covers the Aries kimberlite cluster, including the Aries, Athena, Helena and Persephone diamondiferous kimberlite pipes. Although significant exploration was undertaken in the period from 1986 to 2005, Jindalee believes there is very good potential to find additional diamondiferous pipes and alluvial diamond deposits in the area. Encouragingly, 95% of the diamonds recovered from the project have been gem quality.
Jindalee maintains indirect exposure to uranium through its investments in uranium-focused explorer, Energy Metals Limited (ASX: EME). Energy Metals controls nine projects (total area >4,000 sq km) located in the Ngalia Basin in the Northern Territory (NT) and in Western Australia (WA). Initial exploration has concentrated on the Bigrlyi Project in NT (53.3% owned by Energy Metals), where previous drilling returned relatively high grade intercepts with excellent metallurgical recoveries. At a cut-off grade of 250ppm U3O8, the published Bigrlyi resource estimate (Indicated and Inferred) totals 29.4M lbs of U3O8. The Ngalia Basin area also hosts a number of other uranium deposits for which resources have been published by Energy Metals and these additional deposits have the potential to further extend the life of any future mining operation at Bigrlyi.
Further information on Energy Metals’ uranium projects can be found in their announcements and on their website: www.energymetals.net