Jindalee Resources Ltd (ASX:JRL) is trading higher after confirming the continuity of mineralisation beyond the measured resource at its McDermitt Lithium Project in Oregon, US, with an infill and extensional drilling program completed late last year returning broad mineralised intersections.
This program was designed to increase confidence in areas of inferred mineral resource immediately adjacent to the areas classified as indicated.
The strong broad results returned have been welcomed by investors with shares as much as 9.5% higher in early trade to A$3.23.
Three holes were drilled to the north of the current indicated mineral resource boundary, with highlights including:
MDRC018:
- 13.7 metres at 1,168 parts per million (ppm) lithium from 3.1 metres; and
- 10.7 metres at 2,354 ppm from 21.4 metres (hole ends in mineralisation).
MDRC019:
- 13.7 metres at 1,041 ppm lithium from 9.2 metres;
- 13.7 metres at 1,084 ppm from 44.2 metres;
- 24.4 metres at 2,173 ppm from 71.7 metres, including 3.1 metres at 3,425 ppm; and
- 38.1 metres at 1,407 ppm from 105.2 metres, including 3.1 metres at 2,765 ppm.
MDRC020:
- 13.7 metres at 2,142 ppm lithium from 22.9 metres, including 7.6 metres at 2660 ppm; and
- 12.2 metres at 1133 ppm from 45.8 metres.
Forward outlook
Jindalee has already planned and permitted a 2022 drill program which will use reverse circulation (RC) drill rigs to investigate untested mineral potential across the western tenure.
This program is expected to begin in July 2022, conditions permitting.
The company will continue to advance the project during the first half of the calendar year, undertaking baseline environmental studies from February, in line with Jindalee’s application for an Exploration Plan of Operations (EPO).
These studies are being coordinated with the Bureau of Land Management (BLM) and the Oregon Department of Geology and Mineral Industries (DOGAMI).
In addition, a 200-kilogram sample from the 2020 drill program has arrived in Perth with metallurgical test-work to commence at Nagrom this week.
About Jindalee Resources
Jindalee Resources is an exploration company with direct and indirect exposure to lithium, gold, iron ore, uranium and magnesite through projects generated by its technical team.
The company’s strategy is to acquire prospective ground inexpensively, add value through low-cost exploration and introduce partners to assist in funding further progress, or fund this activity via a dedicated company in which Jindalee retains a significant interest.
Jindalee owns 100% of the flagship McDermitt Lithium Project which is spread over 34 square kilometres and has the potential for long-life, low-cost mining operations.