Jindalee Resources Ltd (ASX:JRL) welcomes progress made at its 100%-owned McDermitt Lithium Project in Oregon, USA, where the US Bureau of Land Management (BLM) will now put forward the project's exploration plan for public comment.
The Exploration Plan of Operations (EPO) will be presented, either separate from or as a part of the environmental review process required by the National Environmental Policy Act (NEPA).
The process will take up to 12 months, with the final NEPA decision to be incorporated into the EPO.
The US-focused company completed environmental baseline and cultural studies at McDermitt in 2022 and applied for the EPO to enable further drilling and bulk sampling from the BLM in mid-January this year.
Reducing cash outflow
The McDermitt Project is currently the largest lithium deposit in North America with a combined indicated and inferred mineral resource of 3 billion tonnes at 1,340 parts per million for 21.5 million tonnes of LCE.
Jindalee expects to receive a refund of up to US$120,000 in cash following the acceptance of surety bonds by the BLM and the Oregon Department of Geology and Mineral Industries (DOGAMI) to replace cash reclamation bonds currently lodged against McDermitt.
Crucially, these bonds are expected to reduce the cash outlay required for additional bonding once the EPO is approved.
POSCO research update
Separately, the company's collaboration with major South Korean lithium producer POSCO Holdings to optimise the flowsheet for processing ore from McDermitt is making steady progress.
Test work on a large composite sample from McDermitt, which was shipped to POSCO’s research facility in Korea in late March, is now underway.
The Korean NYSE-listed firm, which will fund the A$2-million research, is expected to announce results from the first phase of test work in July.
Further metallurgy test
Meanwhile, Jindalee is preparing to launch an in-depth study to optimise the mining and processing of high-grade ore from McDermitt before the quarter’s end. This is separate from the study with POSCO.
The selection of samples for the metallurgical test work is afoot, with the results expected to support the project’s pre-feasibility study.
This in-depth study follows consultant Fluor (NYSE:FLR)’s finding that acid leaching with beneficiation was the most financially viable way to upgrade the leach head grade.