Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF) is trading higher after breaking through to battery-grade lithium carbonate producer status in tests which resulted in a product of more than 99.5% purity with ore sourced from the McDermitt Lithium Project in Oregon, US.
The test work was completed in collaboration with Fluor – the lead engineer for the project’s ongoing pre-feasibility study (PFS) – at Hazen Research Inc.
With this milestone passed successfully, Jindalee has also validated each step of the processing flowsheet, an important step ahead of completing the PFS.
Investors have welcomed the milestone with Jindalee shares up 13.46% in the first hour of ASX trading to A$0.295.
Tapping into US supply chain
"The successful production of battery-grade lithium carbonate from McDermitt ore is a major milestone for Jindalee,” Jindalee CEO Ian Rodger said.
“This achievement substantially de-risks our processing flowsheet and demonstrates the potential for McDermitt to supply high-quality lithium chemicals to the expanding US battery value chain.
“We have been greatly encouraged by the exceptional results we have achieved since commencing the PFS metallurgical test work program with Fluor and Hazen in mid-2023 and anticipate that these results will meaningfully support the outcomes of the McDermitt Lithium Project PFS which is now due for release in Q4 CY 2024.”
Adding extra weight to Jindalee’s flowsheet choices, the company’s process is very similar to that of Lithium Americas’ Thacker Pass Project currently under construction 30 kilometres to the south.
The proximity implies the geology within the two projects may be similar; the parallels in flowsheet design are further evidence of such, offering external validation for JLL’s decision-making process.
McDermitt boasts a massive lithium resource of 3 billion tonnes at 1,340 parts per million lithium oxide, for 21.5 million tonnes of contained lithium carbonate equivalent.