Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF) has delivered an update on the progress of the McDermitt Lithium Project, the largest lithium resource in the United States with 21.5 million tonnes (Mt) of lithium carbonate equivalent (LCE).
Scale and potential of lithium
The project mirrors the scale and potential of the Thacker Pass project and is poised to meet the expected medium-term lithium supply deficit driven by the electric vehicle (EV) transition.
Strategically located in the McDermitt Caldera, the McDermitt Project benefits from a shallow ore body, established flow sheet and a Memorandum of Understanding (MoU) with POSCO Holdings, a major supplier and partner to General Motors (NYSE:GM).
The project is eligible for various US government incentives, including those under the US$369 billion Inflation Reduction Act.
The company says there’s a big year ahead, with major value catalysts expected in the second half of 2024, including the completion of the pre-feasibility study (PFS), production of lithium carbonate from test work and ongoing engagement with US agencies and strategic partners.
Equity raise
Jindalee is raising up to A$6.7 million through an equity raise and convertible note to fund the completion of the McDermitt PFS and support significant milestones in 2024.
The funding will accelerate the investigation of value optimisation options for McDermitt, ongoing US operations, and general working capital.
The McDermitt Lithium Project is entirely owned by Jindalee Lithium Limited and situated in Malheur County, on the Oregon-Nevada border.
Initially discovered in 2018, the McDermitt Project quickly established its significance, and by 2023, it was confirmed as the largest lithium deposit in the US.
The McDermitt Project boasts a resource of 3 billion tonnes with an average grade of 1,340 parts per million (ppm), amounting to a substantial 21.5 million tonnes of lithium carbonate equivalent (LCE).