Jindalee Resources Ltd (ASX:JRL) has intersected significant near-surface lithium mineralisation over large thicknesses and with excellent grade continuity from a diamond drilling program at McDermitt Lithium Project in the US.
These diamond drill holes have encountered several higher-grade zones (>3,000ppm lithium) within the mineral resource, reinforcing the potential scalability of the project highlighting some of the best intersections at McDermitt to date. Results include:
- 73.5 metres at 1,554 ppm lithium from 30 metres, including 10.5 metres at 3,055 ppm;
- 60 metres at 1,880 ppm from 48 metres, including 15 metres at 2,707 ppm; and
- 38 metres at 1,751 ppm from 43 metres including 3 metres at 3,805 ppm.
The drill results are expected to increase confidence in areas of inferred mineral resources adjacent to indicated mineral resources.
Moving forward, with all assays from the 2021 drill program now being received, the new drill data will be used to update the mineral resource estimate (MRE), which is anticipated to be completed early in the June quarter.
The market welcomed the news with shares trading as high as A$3.25 intraday, up 23.1% from the previous close while JRL's market cap is approximately A$168.26 million.
Growing bipartisan support
Jindalee is encouraged by recent announcements from both sides of US politics expressing concern with the current dependence of the US on foreign sources of critical minerals (including lithium), that could have positive implications for the development of McDermitt.
On March 8, 2022, Senator Wyden (Democrat, Oregon) introduced legislation to support the processing and production of critical minerals to increase and expand domestic manufacturing and ease reliance on foreign sources of oil and gas.
This was followed by a bipartisan letter to President Biden on March 11, 2022, jointly signed by Senators Murkowski, Manchin, Risch and Cassidy, urging the president to invoke the Defense Production Act to accelerate the production of battery materials, including lithium.
Next steps
Planning for the next phase of drilling in 2022 is well-advanced with all drill permits in hand
The remainder of the drilling will focus on investigating the untested mineral potential across the western tenure and look for opportunities for higher-grade material.
Jindalee continues to advance the project through its application for an Exploration Plan of Operations (EPO).
Baseline studies to feed into the EPO are being coordinated with the Bureau of Land Management (BLM) and the Oregon Department of Geology and Mineral Industries (DOGAMI).
Furthermore, metallurgical test-work has commenced at Nagrom, Western Australia.