Jindalee Resources Ltd (ASX:JRL) released a scoping study for its McDermitt Lithium Project in September, which highlighted the potential of the project to supply lithium carbonate for decades.
Lithium sector corporate activity has been running strong in 2021, with Jindalee featured among 15 notable transactions since the beginning of 2021 outlined in Bell Potter's 'Eye on Lithium' report.
Meanwhile, the lithium price is steadily rising with FastMarket’s latest price assessment on October 21 confirming material monthly and yearly increases.
Bell Potters expects heightened lithium news flow and sector tailwinds with the COP26 UN climate change conference to be held early next month.
McDermitt scoping study
The McDermitt Project is in Malheur County on the Oregon-Nevada border in the US with a resource base of 1.43 billion tonnes at 1,320 ppm lithium.
McDermitt is one of the largest lithium deposits in the US with a 54.6 square kilometre claims area.
Summary of McDermitt Mineral Resource Estimate at varying cut-off grades, with preferred reporting cut-off of 1,000ppm highlighted.
Jindalee’s preliminary scoping study on the McDermitt Lithium Project has indicated positive operational and economic outcomes.
The study envisages an open-pit mining operation processing ore by means of sulphation roasting to produce battery-grade lithium carbonate.
The current JORC resource contains a high proportion of inferred resources and hence disclosure is necessarily limited, however, the indicative parameters show a large and valuable project.
Next steps for the project include: additional resource definition drilling to upgrade the Mineral Resource Estimate confidence, optimisation of the minerals processing flow sheet, accelerating environmental studies and project permitting, and engagement with potential customers and investors.
Jindalee’s McDermitt Project compares very favourably to other sediment hosted lithium deposits.