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Jindalee Resources Believes McDermitt is Poised for Further Growth

21 November 2023 10:52

Jindalee Resources Limited (ASX:JRL) continues to progress its flagship McDermitt Lithium Project, announcing an independently estimated Exploration Target Range (ETR) at the Project offers optimistic signs for further development and upside potential.

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Figure 1: Plan view of the McDermitt Lithium Project with 2023 Mineral Resource completed drilling, Exploration Target and Surface Sampling locations outside the Mineral Resource and Exploration Target areas

The McDermitt Lithium Project

Jindalee’s McDermitt Lithium Project, located on the Oregon-Nevada border, is the largest by contained lithium and one of the most strategically important lithium deposits in the United States.

In February this year, the Company updated its Mineral Resource Estimate (MRE) for the Project, standing at an impressive combined indicated and inferred resource of 3.0 Billion tonnes at 1,340ppm lithium for a total of 21.5 Million tonnes LCE at 1,000 ppm cut-off grade.

In addition to the MRE upgrade, Jindalee began an ETR extrapolated from the 62 holes drilled at the Project between 2018 to 2022. This yielded an promising estimation of 300 – 700 Million tonnes at 1,100 – 1,400ppm lithium, at 1,000ppm Lithium cut-off.

Recent relogging of McDermitt drilling, combined with regional mapping and sampling, has recognised up to 12 distinctive and laterally continuous stratigraphic units which can be tracked across the McDermitt Project.

Although the Exploration Target is conceptual in nature, the Company still believes this demonstrates significant upside potential for the deposit, confirming excellent prospectivity for further resource growth.

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Table 1: Summary of Exploration Target Range at cut-off of 1000ppm. LCE calculated using the midpoint of the range

Backing Metallurgical Testing

The optimistic ETR comes hot on the heels of Jindalee’s recent exploration update, reporting promising metallurgical test work and excellent results from the beneficiation of lithium samples through attrition scrubbing.

Jindalee disclosed that pit shell composites encompassing Units four, six, eight, and ten from conceptual Pit Shell six (with a nominal duration of 43 years) achieved a recovery of 92.0% of lithium to leach feed and rejected 25.3% of the mass at a cut size of 250 microns.

This surpassed the average head grade of metallurgical samples by 18%, registering a grade to leach at 2,107 ppm lithium, and exceeded the average Mineral Resource grade by a significant 57%.

The Company believes the culmination of the ETR and results are effective in demonstrating the vast potential of the McDermitt Lithium Project, reflecting the opportunity for further resource growth.

Exploration Plan of Operation

In May, the Bureau of Land Management completed Jindalee’s request for an Exploration Plan of Operations (EPO), once approved Jindalee will be able to significantly increase on-site activity at the McDermitt Project.

This includes plans to ramp up exploration, consisting of 160 holes designed to both infill the 2023 MRE and test areas currently covered by the Exploration Target. Jindalee anticipates the EPO to be approved within the second half of next year, planning drilling to commence shortly after receiving this approval.

Drilling Updates

Jindalee had planned for diamond drilling at five geotechnical holes within the McDermitt Project to commence at the start of November, however, it reports it is still awaiting approval from the Oregon Department of Geology and Mineral Industries (DOGAMI).

Once this approval has been received drilling can go ahead as planned.

JRL’s Australian Stock Exchange-listed share price is currently trading at $1.08 (10.41am UTC+ 8 hours).

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