Jindalee Resources Limited traded higher after increasing the indicated resource at the McDermitt Lithium Project in the US by 170% to 616 million tonnes at 1,460 parts per million (ppm) lithium for 4.8 million tonnes of lithium carbonate equivalent.
Results from the company's 2021 drilling program have resulted in a mineral resource estimate (MRE) upgrade with the indicated resource increasing 165% by tonnage and 2% in grade.
The overall indicated and inferred resource at McDermitt now stands at 1.82 billion tonnes at 1,370 ppm lithium for 13.3 million tonnes lithium carbonate equivalent at a 1,000 ppm cut-off grade.
JRL securities were as much as 5.87% higher to A$3.07 while the market cap is approximately A$166.4 million.
Strong drill results
Jindalee's 2021 drilling program at the project on the border of Oregon and Nevada intersected significant lithium mineralisation over large thickness with excellent grade continuity.
A total of six reverse circulation and six diamond holes were drilled in the program and broad widths of lithium mineralisation were intercepted in every hole, with highlights including:
- 38.0 metres at 1,751 ppm lithium from 43.0 metres including 3.0 metres at 3,805 ppm;
- 21.0 metres at 1,952 ppm lithium from 24.0 metres including 3.0 metres at 3,065 ppm;
- 24.0 metres at 2,210 ppm lithium from 61.5 metres including 9.0 metres at 3,000 ppm
- 40.5 metres at 1,714 ppm lithium from 33.0 metres including 12.0 metres at 2,732 ppm;
- 60.0 metres at 1,880 ppm lithium from 48.0 metres including 15.0 metres at 2,707 ppm; and
- 73.5 metres at 1,554 ppm lithium from 30.0 metres including 10.5 metres at 3,055 ppm.
R
Recent significant intercepts through the McDermitt Project
Next steps
An additional 28 drill holes have been fully permitted in 2022 with the aim to infill and upgrade the resource and to define the full extent of the lithium mineralisation at the McDermitt Project.
Jindalee said it was well funded to advance the project, with drilling expected to commence in the current quarter.
The company is progressing environmental baseline studies ahead of submitting an application for an Exploration Plan of Operation (EPO) in the March quarter of 2023.
Additionally, metallurgical studies at Nagrom are ongoing, focusing on optimising the processing flowsheet from recommendations identified in the scoping study.
H&S Consultants Pty Ltd was commissioned to update the MRE following the completion of the 2021 drill program.