Jindalee is plotting to make the largest lithium deposit in the US even larger
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Special Report: Jindalee Resources could add as much as 700Mt or more than 23% to what is already the largest lithium deposit in the US.
Since acquiring the project in 2018, Jindalee Resources (ASX: JRL) has rapidly increased the total resources at McDermitt in Oregon to be the largest lithium deposit in the US by contained lithium.
McDermitt’s 3Bt @ 1,340ppm lithium for 21.5Mt LCE is therefore larger than the nearby 19.1Mt Thacker Pass project currently being developed by Lithium Americas, which has secured a US$650 million offtake deal with renowned automaker General Motors and a proposed loan from the US Government’s Department of Energy for up to 75% of the construction costs.
JRL is ready to grow the resources at its flagship asset even further and today unveiled an independently estimated exploration target range of 300-700Mt at 1,100-1,400ppm lithium (using a 1,000ppm cut-off) for McDermitt which remains open to the west and to the south.
The exploration target abuts the defined resource area and was extrapolated from 62 holes drilled at McDermitt between 2018 to 2022.
Recent relogging of McDermitt drilling, combined with regional mapping and sampling, recognised up to 12 distinctive and laterally continuous stratigraphic units which can be tracked across the project area.
The exploration target extends to a maximum distance of 1,500m from the nearest hole. By comparison, material for the McDermitt resource extends to 1,200m from the nearest hole.
Sampling of weathered sediments exposed in drainages west and south of the resource and exploration target areas has returned “strongly anomalous” lithium values. JRL said this indicates potential to locate additional lithium mineralisation in these areas.
JRL has submitted an exploration plan of operations to the US Bureau of Land Management (BLM) which will allow the company to drill up to 160 holes to both infill the resource and test areas currently covered by the exploration target.
Approval is expected during the second half of next year with the drill rigs to start turning soon after.
JRL was scheduled to begin to drill five geotechnical holes at McDermitt from November 1, subject to final approvals from the BLM and Oregon Department of Geology and Mineral Industries (DOGAMI).
While the proposed diamond drilling program has been given the green light by the BLM, subject to posting additional bonding for environmental reclamation, JRL is still yet to receive approval from DOGAMI.
This article was developed in collaboration with Jindalee Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.