Jindalee Resources Limited has presented an update on the McDermitt Lithium Project in Oregon, USA.
Despite the current pause in drilling operations, Jindalee reported continued solid progress at McDermitt. Recent possible corporate action in the global lithium industry has encouraged the Company, including the recently announced planned merger between Livent Limited and Allkem Corporation, which speaks well for the McDermitt Lithium Project’s future funding and development.
Permitting
The US Bureau of Land Management (BLM) has notified Jindalee that the Exploration Plan of Operations (EPO) for McDermitt, which was initially filed in August 2022, has been deemed complete.
The BLM will now seek public comment on the EPO, either separately or as part of the environmental review process mandated by the National Environmental Policy Act (NEPA), with the NEPA assessment’s ultimate determination integrated into the EPO. Jindalee said the procedure is likely to take up to a year.
Jindalee further stated that both BLM and the Oregon Department of Geology and Mineral Industries (DOGAMI) had agreed to take surety bonds in lieu of cash reclamation bonds now lodged against the McDermitt Lithium Project, restoring up to US$120,000 in cash to the Company. Importantly, the use of surety bonds is projected to lower the monetary expenditure necessary for additional bonding if the EPO achieves final clearance.
MOU with POSCO
Jindalee inked a non-binding Memorandum of Understanding (MOU) with POSCO Holdings Inc. in February 2023. POSCO is a key global lithium manufacturer and provider of cathode active materials to General Motors, a major US automaker.
Under the provisions of the MOU, POSCO and Jindalee committed to conducting cooperative research to improve the flowsheet for processing McDermitt ore. POSCO will cover the full testwork, which is projected to cost around A$2 million. Following the conclusion of the testwork, POSCO and Jindalee will jointly evaluate the Project’s commercialisation.
The McDermitt Lithium Project’s huge composite sample was transported to POSCO’s research centre in Korea in late March 2023, and testing is already ongoing. POSCO has said that the findings of the first round of testing will be ready in July 2023.
Metallurgical Testwork — Jindalee
Jindalee stated that, in late March 2023, Fluor reviewed all McDermitt metallurgical testwork. The review found that acid leaching with beneficiation had the lowest operating costs and the best financial outcome. McDermitt’s large Mineral Resource allows flexibility in development, allowing early feed of high-grade ore.
Fluor advised rapid testwork to refine the prefered flowsheet and support a PFS. Jindalee is pleased to report that sample selection for this study—independent of POSCO’s testwork—is well underway, with testwork planned to begin before the quarter’s end.
