Jindalee Resources Ltd (ASX:JRL) has recruited engineering and construction giant Fluor (NYSE:FLR) Corporation to lead a pre-feasibility study (PFS) on its 100%-owned McDermitt Lithium Project in Oregon, USA, in preparation to meet the rapidly growing demand for domestically produced lithium in the United States.
The company is conducting test work to refine the preferred flowsheet for the processing of McDermitt ore after earlier metallurgical tests concluded that acid leaching with beneficiation (to upgrade the leach head grade) delivered the lowest operating costs and best financial outcome.
Additionally, Jindalee has commenced detailed geological modelling and geochemical domaining of the McDermitt deposit, together with preliminary pit optimisations and mining studies, that will feed into the PFS.
Increased confidence
McDermitt is currently the largest lithium deposit in North America with an inferred resource of 3 billion tonnes at 1,340 parts per million for 21.5 million tonnes of lithium carbonate equivalent (LCE).
Jindalee has been encouraged by recent developments in the US lithium sector, including Lithium America’s construction of its Thacker Pass Project, which is supported by a US$650 million equity investment and exclusive off-take by US car manufacturer General Motors Company (NYSE:GM).
As well, the US Department of Energy (DOE) recently awarded a conditional loan of up to US$700 million to support the development of Ioneer Ltd (ASX:INR, OTC:GSCCF)’s Rhyolite Ridge Lithium‐Boron Project in Esmerelda County, Nevada.
It also noted the recent conclusion of the Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact, which aims to establish climate and clean energy as a central pillar of the Australia-United States Alliance.
Strategically important resource
Jindalee chairman Justin Mannolini said: “I am delighted to announce the appointment of Fluor (NYSE:FLR) as lead engineer for the McDermitt PFS.
“McDermitt is a very large, and potentially, strategically important domestic source of lithium for the US battery industry.
“Fluor has assembled a team of highly-credentialled engineers and metallurgists with extensive experience with US sediment-hosted lithium deposits to work on the PFS, which we look forward to completing in late 2023.”