Jindalee Resources Limited (ASX:JRL)’s shares were trading 3.49% higher after commencing drilling at its 100% owned McDermitt Lithium Project in Oregon, US to infill and extend the current lithium resource.
In September 2021, Jindalee had announced the results of a positive preliminary scoping study based on the indicated and inferred resource of 1.43 billion tonnes at 1,320 ppm lithium for a total 10.1 million tonnes of Lithium Carbonate Equivalent (LCE) at a 1,000 ppm lithium cut-off grade.
The key outcomes of the study highlighted the potential of the project to support a viable standalone lithium mining and processing operation and reinforced the significance of McDermitt as a potential long-life source of future supply to the rapidly growing US battery manufacturing industry.
Drilling plan
Approval for a total of 39 RC (reverse circulation) and diamond drill holes has been received from the Oregon Department of Geology and Mineral Industries (DOGAMI).
Jindalee has planned ~29 drill holes to increase confidence in the inferred resource and convert to indicated resource whilst the remainder are exploratory to determine the extent of lithium mineralisation across the project.
Plan view of the McDermitt deposit with simplified interpreted geology and approved drill holes.
Assays are anticipated to be received in the March quarter, with turnaround times expected to be about 12 weeks.