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Jindalee Resources Release Promising First Results From Testwork at McDermitt

23 October 2023 13:41

Jindalee Resources (ASX:JRL) have released the initial assay results for metallurgical samples from its wholly owned McDermitt Lithium Project in Oregon, USA, boasting a head assay average of 1790 ppm Lithium, 34 percent higher than the current McDermitt Indicated and Inferred resource grade.

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Figure 1: Plan view of the McDermitt Lithium Project with 2023 Mineral Resource

McDermitt’s Potential

The results from the initial assays are extremely promising for the Company, suggesting excellent potential to process shallow, higher grade ore early in the mine life, with positive implications for Project economics.

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Table 1: Head Assays from McDermitt metallurgical samples (rounded to 3 significant decimal places).

History of the Testing

In March this year, Fluor Corporation (NYSE: FLR) began analysing the metallurgical testwork undertaken at the McDermitt Project.

Fluor determined acid leaching with ore beneficiation, to upgrade the leach head grade, delivered the lowest operating costs and best financial outcome among the alternatives considered.

Additionally, it noted the McDermitt Mineral Resource of 21.5 Mt LCE allowed for flexibility in development, providing opportunities to optimise mining and feed higher grade ore early in the mine life.

Fluor provided the recommendation that a comprehensive metallurgical testwork program be undertaken to provide information upon which the preferred flowsheet for the processing of McDermitt ore can be defined.

The Metallurgical Testwork

Back in June, Cube Consulting harnessed the McDermitt MRE geological model to produce conceptual pit shells, a crucial step in determining sample selection for the upcoming metallurgical testwork program.

Notably, they picked several samples from Units 4, 6, 8, and 10 within the Indicated segment of Pit Shell 5 to undergo testing, alongside an extra 700 kilograms of drill core.

Future Outlook

Jindalee has delineated its forthcoming actions, which encompass the assessment of results from Particle Size Distribution testwork on the samples and the execution of attrition scrubbing. This process aims to enhance the ore’s quality by separating the lithium-rich, finer-grained fractions before advancing to the acid leaching stage.

The Company’s recent testing initiative was made possible by a successful capital raise placement, securing $5.5 million.

Jindalee had announced the public offer component, which amounted to $3.5 million, was oversubscribed, reaching its maximum gross target within just three days.

These newly acquired funds are earmarked to propel multiple facets of exploration and development at the McDermitt Project. This includes activities such as drilling, exploration endeavours, metallurgical testwork, progressing the Pre-Feasibility Study, supporting heritage and environmental initiatives, and bolstering general working capital while covering associated expenses.

JRL’s Australian Stock Exchange-listed share price has risen 1.449% and is currently trading at $1.400 today (1.30pm UTC+ 8 hours).

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