Jindalee Resources forges ahead with McDermitt Lithium Project scoping study and plans Clayton North lithium exploration drilling

Jindalee Resources Ltd (ASX:JRL) is undertaking mining, engineering and geotechnical components of a scoping study for the advanced McDermitt Lithium Project in the US state of Oregon while planning exploration drilling at Clayton North Lithium Project in Nevada. The market will be advised of scoping study outcomes as guided by ASX and ASIC reporting frameworks in the September quarter. In addition to the scoping study, drill planning for the 2021 season is well advanced with an extensive RC and diamond drill program designed to upgrade and extend the current mineral resource at McDermitt. This program is designed to maximise resource conversion while minimising the disturbance footprint. Drill permitting is currently with the government agencies and a drill contractor has been appointed to complete the programs, with drilling expected to start in the September quarter. Test-work commissioned on bulk samples After successfully demonstrating the ability to upgrade lithium content by 60% through attrition scrubbing, Jindalee has commissioned test-work to be completed on bulk samples collected in the 2020 drill program. The test sample will consist of around 1,000 kilograms of ore and will follow a staged process of attrition scrubbing, acid leaching and purification through to final production of lithium carbonate. The entire process is expected to take approximately six months. Tenements staked at McDermitt in March have been approved by the Bureau of Land Management (BLM). These new tenements straddle the Oregon-Nevada border and are interpreted to contain extensions of sediments hosting the lithium mineralisation at the McDermitt deposit. Clayton North An exploration diamond drill program is planned to test Jindalee’s 100%-owned Clayton North Project in Nevada. Clayton North is 23 kilometres north of Albermarle Corporation’s (NYSE:ALB) Silver Peak brine operation, which is currently the only domestic source of lithium in US. Samples taken by Jindalee in 2018 confirm the presence of lithium mineralisation, with up to 930ppm lithium detected at surface. This drill program is the first follow up of the surface sampling results with drill holes planned to ascertain grade continuity of lithium mineralisation in fresh sediments. Drilling is expected to commence in July 2021. New appointments With the development of the McDermitt project ramping up, the company recently secured two valuable additions to the Jindalee team. Jindalee appointed Jimmy Thom as exploration manager, an experienced geologist with 15 years’ experience across project generation, brownfields exploration and resource development in Australia, Africa, and Canada. Thom will primarily focus on progressing Jindalee’s WA assets, particularly the Widgiemooltha project which is highly prospective for gold, nickel, and lithium. In addition, the company has engaged Paul Meyer to manage the exploration and development activities at the company’s lithium assets in the United States. Meyer is based in the US and brings a wealth of experience in both exploration geology and environmental management, which will be of great value as the company progresses development at McDermitt. Jindalee is delighted to welcome Thom and Meyer to the team. US lithium assets – sector developments President Biden and his administration remain committed to their strategy for net-zero carbon emissions by 2050. The Federal Consortium for Advanced Batteries (FCAB) is a collection of US Federal agencies developing a collaborative strategy for ensuring US self-sufficiency with regards to the lithium battery supply chain. On June 7, the FCAB released the National Blueprint for Lithium Batteries with five critical goals to attain, with the first being “securing US access to raw materials by incentivising growth in safe, equitable and sustainable domestic mining ventures while leveraging partnerships with allies and partners to establish a diversified supply”. McDermitt is well placed to provide a large steady domestic supply of lithium to support the US in meeting its targets for decarbonisation. To meet the increased demand requirements multiple battery factory developments have been announced or proposed in the US.