Following a review of several extraction options, Jindalee Resources Ltd (ASX:JRL) (JRL) is now looking to advance metallurgical testwork at its wholly-owned McDermitt lithium project.
Late last year, Jindalee contracted NYSE-listed Fluor (NYSE:FLR) Corporation to examine all the metallurgical testing undertaken at the project, located in south-east Oregon, and provide recommendations going forward.
Financial models were prepared for three processing routes: alkali salt roasting, acid leaching without beneficiation, and acid leaching with beneficiation. While there was no significant difference in capital costs between the three methods, Fluor (NYSE:FLR) found that acid leaching with beneficiation delivered the lowest operating costs and the best financial outcome.
Testwork to start straight away
“Jindalee intends to immediately commence the metallurgical testwork recommended by Fluor to refine the preferred flowsheet,” the company said in an announcement this morning.
“The results of this testwork will be integrated with optimised mine studies on the latest McDermitt MRE and will inform the next phase of studies at McDermitt.”
Notably, the scale of the resource at McDermitt — considered to be the largest lithium deposit in North America — is expected to provide flexibility during development, with the opportunity to optimise mining and feed high grade ore early on.
In an announcement at the end of February, Jindalee reported a 65 per cent increase in the mineral resource at McDermitt from 13.3 million to 21.5 million tonnes of lithium carbonate equivalent (LCE).
The upgrade came off the back of an extended drilling program between August and October last year, and saw McDermitt steal pole position in the US from Lithium America’s Thacker Pass project, which holds an estimated 16.1 million tonnes of LCE.
Jindalee Resources is up 2.1% in morning trading.
Written by Oliver Gray