Jindalee Resources (ASX: JRL) has contracted Alford Drilling from Elko, Nevada to undertake a diamond core drilling programme at Jindalee’s 100% owned McDermitt Lithium Project in Oregon, USA.
The proposed drilling programme comprises five HQ triple tube core holes collared within, or immediately adjacent to, conceptual Pit Shell 5 (nominal 20 years) and is primarily designed to provide geotechnical information for the Pre-Feasibility Study (PFS), as well as confirm data from earlier reverse circulation (RC) drilling.
Drilling is expected to commence 1 November 2023, subject to receipt of final approvals from the Bureau of Land Management, with assays from the drilling expected early 2024.
McDermitt has an Indicated and Inferred Mineral Resource Inventory of 3.0 Billion tonnes at 1,340ppm Li for total of 21.5 Million tonnes LCE at 1,000 ppm cut-off grade.
At 21.5 Mt LCE, McDermitt is the largest lithium deposit in the US by contained lithium in Mineral Resource, and a globally significant resource.
McDermitt is located at the northern end of the McDermitt Caldera, approximately 35km north of the Thacker Pass deposit, owned by Lithium Americas. The Thacker Pass Project (Measured, Indicated and Inferred resources of 19.1Mt LCE4) is fully permitted and currently under construction.
On 3 October 2023 Lithium Americas announced the separation of its Argentinian assets as Lithium Americas Argentina and the execution of a second tranche subscription agreement with General Motors (NYSE: GM) whereby GM will purchase US$330M in LAC shares, taking GM’s total investment in LAC to US$650M6. GM is now LAC’s largest shareholder with 9.4% of issued capital and has an agreement with LAC to acquire 100% of lithium carbonate from Phase 1 production (40,000 tpa LCE) at Thacker Pass. At the close of trading on TSX on 6 October 2023, Lithium Americas had a market capitalisation of C$2.51B (A$2.87B).
Jindalee is very encouraged by recent progress at the Thacker Pass Project, which has positive implications for the potential development of McDermitt.
