Jindalee Resources Ltd (ASX:JRL) has revealed another strong set of lithium results from the McDermitt Lithium Project in Oregon, US, where the company recently completed a program of infill and extensional drilling.
Several wide lithium intercepts were generated across the project, offering potential to upgrade the project’s mineral resource estimate (MRE), especially as two holes were collared outside the current resource boundary. Results are presented in parts per million (ppm).
- 33.5 metres at 1,819 ppm lithium from 22.9 metres, including 9.1 metres at 2,705 ppm from 30.5 metres;
- 16.8 metres at 1,680 ppm from 4.6 metres, including 3.0 metres at 2,295 ppm from 7.6 metres; and
- 39.8 metres at 1,265 ppm from 75.1 metres, including 3.0 metres at 2,120 ppm from 75.1 metres.
Results from outside the resource boundary:
- 18.8 metres at 1,801 ppm lithium from 121.3 metres, including 3.4 metres at 3,202 ppm from 130.3 metres; and
- 47.4 metres at 1,449 ppm from 26.8 metres, including 10.2 metres at 2,631 ppm from 55.5 metres.
One of the largest lithium deposits in NA
“The results of the 2022 drill program appear to confirm what we had long suspected – that the McDermitt Lithium Project, already the second largest lithium resource in North America, has the potential to become even bigger,” Jindalee Resources executive director Lindsay Dudfield said.
“The preliminary scoping study released by Jindalee in September 20216 was predicated on an average life of mine lithium carbonate price of around US$11,000 per tonne and a proportion of mineral resource by classification in the optimised pit shell of approximately 22% Indicated to 78% Inferred.
“With the spot price for lithium carbonate now around US$80,000 per tonne, and the potential to significantly improve the confidence level on the resource following recent drilling, it seems clear that McDermitt is firming as one of the most strategically significant lithium deposits in North America.
“We look forward to updating the market with a new mineral resource estimate in early 2023, with a view to completing further studies to demonstrate the economic potential of the project.”
Jindalee said these final assay results capped off a highly successful exploration program and paved the way for a significant increase in size and confidence of the McDermitt MRE.
The 2022 drilling program was designed to infill and extend the MRE announced of 1.82 billion tonnes at 1,370 ppm lithium for 13.3 million tonnes of LCE (lithium carbonate equivalent) at a 1,000 ppm lithium cut-off.