Jindalee Resources Ltd (ASX:JRL) has extended the area of mineralisation at its 100%-owned McDermitt Project in Oregon, USA, by delivering further broad, high-grade lithium hits from an ongoing drilling program with shares trading higher.
Of significance was drill hole MDD025, which intercepted 182.2 metres at 1,197 parts per million (ppm) lithium from 21.4 metres, suggesting strong potential to substantially increase the tonnage on the western side of the deposit.
The 2022 drilling program is designed to infill and extend the project’s mineral resource estimate (MRE) of 1.82 billion tonnes at 1,370 ppm lithium for 13.3 million tonnes lithium carbonate equivalent at 1,000 ppm lithium cut-off.
Plan view of the McDermitt Project with drill collars and 2022 MRE.
Five of the six holes in the latest round of assays received are within the current inferred but outside the indicated resource estimate.
Some of the intercepts include:
- MDD025: 23.3 metres at 1,726 ppm lithium from 72.1 metres, including 6.0 metres at 2,211 ppm lithium from 140.2 metres;
- MDD026: 51.8 metres at 1,787 ppm lithium from 83.4 metres, including 9.8 metres at 3,118 ppm lithium from 104.7 metres; and
- MDRC026: 29.0 metres at 1,568 ppm lithium from 19.8 metres, including 3.0 metres at 2,100 ppm lithium from 30.5 metres;
- MDRC030: 25.9 metres at 1,460 ppm lithium from 118.9 metres, including 3.0 metres at 2,270 ppm lithium from 129.5 metres.
Results from the remaining six holes should be received by mid-December, following which an updated MRE for McDermitt is expected to be announced in early 2023.
JRL shares are 8.49% higher at A$2.30 and the company's market cap is approximately A$128.53 million.
2022 McDermitt MRE at the reporting cut-off of 1,000 ppm.