Jindalee's interest in McDermitt Lithium is explained in full on the McDermitt Lithium website here.
In June 2018 Jindalee announced the acquisition of two lithium sediment projects in the United States, at McDermitt and Clayton North. These projects are 100% wholly owned by HiTech Minerals Inc., a wholly owned, US based subsidiary of Jindalee and were generated by Jindalee after an extensive search across Nevada, Arizona and Oregon. For more detail please see our recent ASX releases here.
Jindalee was attracted to the projects by several factors:
The McDermitt lithium project is located in SE Oregon and was generated by the Company after an extensive search across the western US. An initial four hole drilling program completed in September 2018 intersected broad widths of sediment hosted lithium mineralisation over significant distances, resulting in the estimation of an initial Exploration Target Range (ETR) of 160-780Mt @ 1,300-1,600ppm Li at 1,000ppm Li cut-off1.
Jindalee completed nine diamond drill holes during the September 2019 quarter with all holes intersecting substantial thicknesses of lithium mineralisation over a much larger area, leading to both a significant increase in the ETR at McDermitt and estimation of a maiden Inferred Mineral Resource in November 2019. The Inferred Mineral Resource was 150Mt @ 2,000ppm Li (0.43% Li2O) at 1,750ppm Li cut-off while the ETR was calculated at 180-330Mt @ 1,800-2,200ppm Li (at 1,750ppm Li cut-off).
In late 2020 Jindalee completed 15 drillholes of a planned 21 hole program at McDermitt. The program was designed to infill and upgrade the Inferred Mineral Resource, and test for resource extensions. The program was extremely successful, with every hole intercepting significant broad zones of mineralisation including MDRC015 which was located 1.6km beyond previous drilling.
Figure 1 – Schematic section across the McDermitt deposit with significant intercepts greater than 1,000ppm. 2020 drill collars are in yellow.
In April 2021 Jindalee announced an updated Indicated and Inferred Mineral Resource for McDermitt totalling:
1.43Bt at 1,320ppm Li for 10.1Mt LCE
The Mineral Resource was estimated using a cut-off grade of 1,000ppm Li, which is considered appropriate in the context of similar projects and based on an assessment of the likelihood of future economic extraction as required by the JORC (2012) Code. Jindalee were able to reduce the reporting cut-off as a result of positive metallurgical studies that indicated the ore was amenable to beneficiation in addition to high lithium recoveries from conventional sulphuric acid leaching at low temperature and atmospheric pressure. The Mineral Resource at various cut-off grades is included in Table 1.
The entire Indicated and Inferred Mineral Resource sits within 100m of surface and is flat lying, both positive factors for future project economics.
The Company confirms that it is not aware of any new information or data that materially affects the information included in this market announcement and that all material assumptions and technical parameters underpinning the estimates of mineral resources referenced in this market announcement continue to apply and have not materially changed.Table 1 – Summary of the Indicated and Inferred Mineral Resource at various cut-off grades, with the preferred cut-off grade figures highlighted. (NB: figures may not sum precisely due to rounding, and an increased number of significant figures does not imply increased precision).
Using the same cut-off grade as the Mineral Resource of 1,000ppm Li, the Exploration Target Range(ETR) for McDermitt is:
1.3 to 2.3Bt @ 1,100-1,500ppm Li
The ETR is reported at varying cut-off grades in Table 2 and is exclusive of the Indicated and Inferred Resource. The location of the Indicated and Inferred Mineral Resource and the ETR at the 1,000ppm Li cut-off realative to completed drill holes is shown in Figure 2.
The results from the 2021 Mineral Resource update and the material uplift in contained lithium reinforces the significance of the McDermitt project as a potential source of future supply to the rapidly growing US battery manufacturing industry. The US currently imports most of its lithium for Li-ion battery construction and Jindalee believes that McDermitt has the ability to provide a significant, long life supply of lithium for both domestic consumption and export.
Jindalee are well funded to continue to advance and de-risk the McDermitt Project through 2021/2022 with plans for:
Location of Jindalee’s Lithium Projects and US Battery Factories (existing & proposed)
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Jindalee Resources Limited
Level 2, 9 Havelock Street, West Perth WA 6005
PO Box 1033, West Perth WA 6872
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