Jindalee Resources Limited (ASX: JRL) has announced highly encouraging assay results from hole MDD-006 at its McDermitt lithium project near Nevada, USA.
The company reported that hole MDD-006 have confirmed mineralisation over entire thickness of sediments.
JRL noted that the central part of project now shows thickest and highest lithium grades recorded to date, with significant higher-grade zone emerging.
McDermitt Project
The McDermitt Project is located at the southwestern part of the United States, approximately 16km
west of the town of McDermitt on the Nevada-Oregon border.
The project area hosts lithium bearing claystones that outcrop over most of the ~4km X ~5km project area with substantial thicknesses of up to 67m noted from surface.
Lithium bearing clays at McDermitt lie within the Tertiary aged McDermitt volcanic caldera in an analogous geological setting to the ‘Thacker Pass’ project 30km to the south and held by Lithium Americas.
Drilling at McDermitt
Jindalee had commenced a drill program at McDermitt to support maiden resource estimation, calculation of an updated Exploration Target Range, testing for lithium mineralisation within the expanded tenement position, testing for additional mineralised zones below the limit of current drilling, and testing for higher grade zones.
An initial program comprising six core holes was planned, which was then expanded to 13 holes, MDD-001, MDD-002, MDD-003, MDD-004, MDD-005, MDD-006, MDD-007, MDD-008, MDD-009, MDD-010, MDD-011, MDD-012, and MDD-013.
Assay results from MDD-006
JRL has now announced the assay results from hole MDD-006. The company reported that the results from MDD-006 have confirmed lithium mineralisation over the entire thickness of the prospective stratigraphy in the central part of the project area.
The latest intercepts include 30m @ 1967 ppm Li, including 14m @ 2673 ppm Li, and 74m @ 1481 ppm Li, including 18m @ 2034 ppm Li.
Continuity of lithium mineralisation
Jindalee announced that these results are the thickest and highest grades received to date, demonstrating continuity of lithium mineralisation already seen in adjacent holes, and once again in multiple stacked layers.
The company noted that if all intervals with lithium values <1000ppm are included, the entire sedimentary section assays 151.05m @ 1352 ppm Li.
High-grade historic intercepts
The company had reported assays from holes MDD-001 to MDD-010 in 2018 and 2019. The high-grade intercepts from the 10 holes include 6m @ 2050 ppm Li; 8m @ 2513 ppm Li; 14m @ 2531 ppm Li; 12m @ 2782 ppm Li; 8m @ 2073 ppm Li; 14m @ 2673 ppm Li; 10m @ 2018 ppm Li; 26m @ 2202 ppm Li; 10m @ 2246 ppm Li; and 20m @ 2341 ppm Li respectively.
Emergence of higher-grade zone
JRL said that a key feature observed in the results to date is a near surface zone of higher-grade material across a large part of the project area, where significant thicknesses of sediments with grades in excess of 2200 ppm Li are observed at shallow depths (a maximum of 78m below surface).
The company said that the results of hole MDD-012 are awaited and may extend this zone further.
JRL noted that although the McDermitt lithium project is lower grade when compared to typical pegmatite deposits found in Western Australia (grade ~1% Li2O); the mineralisation in McDermitt occurs from surface, in relatively soft rocks, and over a huge areal extent.
Low cost of production
Jindalee said that the feasibility studies published for more advanced lithium sediment projects demonstrate the costs to produce lithium compounds from these sources are highly competitive, sitting well toward the lower end of the cost curve for lithium carbonate production.
Furthermore, the McDermitt project is also favourably located within the US which imports 100% of its lithium for use in an already large and now rapidly evolving automobile sector.
Next steps
The company reported that the results from the final three holes MDD-011 to MDD-013 inclusive are awaited and will be reported once received.
JRL said that compilation of the drilling results, field mapping, and stratigraphic sections, as well as the sourcing of additional data will be completed once additional assay results have been received.
