Jindalee Resources (ASX:JRL) skyrocketed on Friday after the junior miner exited a trading halt with the confirmation that its upgraded Mineral Resource Estimate (MRE) at its McDermitt Project on the Oregon-Nevada border makes it the USA's largest lithium deposit.
McDermitt hosts a combined indicated and inferred mineral resource inventory of 1.43 billion tonnes at 1,320 ppm lithium for a total of 10.1 million tonnes lithium carbonate equivalent (LCE) at a cut-off grade of 1,000 ppm. The figures making it the largest deposit in the US by contained lithium in mineral resource, eclipsing Lithium Americas Corp’s Thacker Pass deposit.
Jindalee also confirmed the cut-off grade for the resource has reduced from 1,750 ppm in 2019 to 1,000 ppm in 2021 due to encouraging results from metallurgical test-work completed over the past 18 months, which demonstrated the ore can be beneficiated before leaching. This significantly increases confidence in being able to reduce operating costs and subsequent prospects for eventual economic extraction.
There is also scope for resource extensions to the west of the deposit and south in Jindalee’s new claims with further infill drilling planned for the inferred material.
Investors were excited by the news, pushing the shares to a new record high, ending the day up a whopping 87% at $3.44, to take the company's market cap to $176.5 million. Since January, shares have increased from below 80 cents following a consistent stream of news and improved lithium markets.
Results from the update reinforce the potential of the McDermitt project as a potential source of future supply to the rapidly growing US battery manufacturing industry.
Following a $9 million capital just last month, the company is well-funded to continue advancing the development of the project with additional drilling, mining and metallurgical studies planned.
Applications for drill permitting are expected to be submitted in April 2021.