Published On: May 18th, 2023
Jindalee Resources Limited (ASX: JRL) is a mining exploration company that holds significant potential having direct and indirect exposure to lithium, gold, base, and other strategic metals. Jindalee Resources’ dedicated and accomplished Executive Director and CEO, Mr Lindsay Dudfield, has released an encouraging progress update on its 100% owned McDermitt Lithium Project in Oregon, United States. Jindalee Resources has achieved remarkable advancement in the McDermitt Lithium Project, benefiting from recent global lithium sector mergers. This positive development has propelled the company forward, fostering an environment of growth and opportunity.
About Jindalee Resource’s McDermitt Lithium Project
Figure 1: Location of McDermitt Deposit
Jindalee Resources wholly owns the McDermitt Lithium project through its US subsidiary HiTech Minerals Inc. It is a significant sediment project located in Oregon’s southeast region. The Project commenced in June 2018, and since then has attracted attention due to the enormous potential for large-scale, long-lasting lithium sources.
Figure 2: McDermitt Lithium Mineral Resource ESTIMATEs
The McDermitt Lithium Project presents an excellent domestic production opportunity. Jindalee Resources has completed five successful drilling programs – each revealing broad zones of significant Lithium mineralisation. By February 2023, the Project has reported mineral resources totalling 3,000 million tonnes at 1,340 parts per million Li for 21.5 million tonnes of Lithium Carbonate Equivalent. These mineral resource estimates confirm that the McDermitt Lithium Project is the largest lithium deposit in the US. This reaffirms the tremendous importance of the McDermitt Project as a potential source of future supply for the rapidly expanding lithium battery manufacturing industry in the US.
Crucial Progress in McDermitt Exploration Plan of Operations
The Exploration Plan of Operations (EPO) for the McDermitt project has achieved significant milestones, as it has been deemed complete by the US Bureau of Land Management (BLM). This acknowledgement represents a significant step forward for the Project, bringing it closer to its exploration and development goals. The EPO was initially submitted in August 2022, pending review by the BLM. It is set to undergo public scrutiny as part of the mandatory review process under the National Environmental Policy Act (NEPA ). Over the next 12 months, the final assessment compiled will be integrated into the present EPO. This acknowledgment of the EPO by the US Bureau of Land Management marks a pivotal moment in the McDermitt Project’s journey.
Additionally, the BLM and the Oregon Department of Geology and Mineral Industries (DOGAMI) have agreed to accept surety bonds instead of cash reclamation bonds for the McDermitt Project. This development is highly encouraging and has the potential to bring back up to AUD 180,000 in cash to Jindalee Resources. It will also mitigate the cash outlay required for additional bonding once the EPO secures final approval.
Other Developments
Jindalee Resources has inked a non-binding Memorandum of Understanding (MOU) with Korean conglomerate POSCO Holdings Inc. (NYSE: PKS). Per the MOU, both entities have agreed to embark on a joint research venture to process the McDermitt Project’s ore flowsheet. POSCO has committed to funding the entire test work, which will cost around AUD 2 million. In March 2023, an exciting development occurred in the Project: a significant composite sample was shipped to POSCO’s renowned research facility in Korea. Currently, they are conducting testwork on the sample, with results from the first phase of testwork scheduled to be available in July 2023. Also, in late March 2023, Fluor completed a review of metallurgical testwork at McDermitt, recommending immediate further testwork to refine the flowsheet and support a pre-feasibility study (PFS). These results will provide valuable insights into the Project’s progress and shape its future trajectory.
Meet Mr Lindsay Dudfield, Executive Director and CEO of Jindalee Resources
Figure 4: Lindsay Dudfield, Executive Director & CEO
Mr Lindsay Dudfield, Executive Director and CEO of Jindalee Resources is a highly experienced geologist with over four decades of multi-commodity exploration, primarily focusing on Australia. Throughout his career, he held senior roles in the mineral division of leading companies – Amoco and Exxon. Mr Dudfield was one of the founding Directors of Dalrymple Resources NL, where he dedicated his efforts to acquiring and exploring properties for Dalrymple, leading to several significant greenfields discoveries. Later in 1994, Mr Dudfield joined the Board of Horizon Mining NL (predecessor of Jindalee Resources), managing the company since its inception.
Financials of the company
Jindalee Resources demonstrates resilience in the market through its diversified asset portfolio.
- As of May 17, 2023, the Jindalee Resources share price is at AUD 2.17, which is a 15.12% increase year-to-date. The company’s market capitalisation is AUD 124,512,356, highlighting its solid position in the market.
- In the ASX ranking, Jindalee Resources is ranked 855 out of 2,426, showcasing its strong market presence.
These statistics indicate Jindalee Resources’ success and growth trajectory, making it an attractive investment opportunity.
Key Takeaways
- McDermitt Exploration Plan of Operations deemed complete by BLM, public comment and NEPA assessment underway (12-month process).
- Acceptance of surety bonds instead of cash reclamation bonds by BLM and DOGAMI reduces cash outlay and returns cash to Jindalee.
- POSCO’s metallurgical testwork at McDermitt Lithium Project is currently underway, aiming to optimise ore processing.
- Fluor completed a review of metallurgical testwork at McDermitt.
- Further testwork is recommended to refine the flowsheet and support the pre-feasibility study (PFS), which is set to begin soon.
- The substantial Mineral Resources available at McDermitt provides development flexibility and optimisation opportunities.
Overall, the McDermitt Project shows progress, positive industry trends, regulatory advancements, financial benefits, strategic partnership, and potential for optimised operations, indicating promising prospects for Jindalee Resources.
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