Jindalee Resources progresses McDermitt Lithium Project drilling with 10 holes completed

Jindalee Resources Ltd (ASX:JRL) is progressing a drilling program at the McDermitt Lithium Project in the US state of Oregon with the first 10 holes of a 21-hole program completed. Drilling is designed to extend the current inferred mineral resource and exploration target range and convert existing inferred mineral resources to indicated status ahead of a possible scoping study. The program has encountered up to 185 metres true thickness of the target sediments hosting the lithium mineralisation at McDermitt, with initial assay results expected late December. Positive factors for economics In 2019, Jindalee announced an inferred mineral resource of 150 million tonnes at 2,000ppm lithium at 1,750ppm cut-off. The entire resource sits within 100 metres of surface and is flat-lying, with both being positive factors for future project economics. Analysis of the grade tonnage distribution at McDermitt highlights the potential for additional material available at lower grades. Metallurgical test-work to date has been very encouraging, indicating high lithium recoveries from conventional sulphuric acid leaching at low temperature and atmospheric pressure and the potential to beneficiate the ore to increase lithium head grade and remove acid consuming minerals, thereby improving project economics. Jindalee shares are up 1-cent today to 83 cents and since closing at 55 cents on October 15, have been climbing, reaching a new 13-year high of 86.5 cents on November 11.  Strategically placed to Tesla’s Gigafactory Recent announcements by Tesla Inc (NASDAQ:TLSA) regarding its commitment to invest in ‘localisation’ of its cathode supply chain and production in the US along with its acquisition of the rights to Nevada sediment-hosted lithium deposits have underlined the importance of very large sediment-hosted lithium deposits. The McDermitt project is strategically located with respect to Tesla’s Gigafactory. Tesla is the first automotive OEM to enter lithium production, a move that may be replicated by other US automakers keen to gain greater control over the supply chain for minerals critical for the manufacture of electric vehicles.