On 30 January 2024, Jindalee Lithium Limited (Jindalee, the Company) lodged its December 2023 Quarterly Activities Report, which summarised activities undertaken at the Company’s 100% owned McDermitt Lithium Project located in Oregon, USA (Project)1. McDermitt is currently the largest lithium deposit in the USA by contained lithium in Mineral Resource and is a globally significant resource with the potential to supply lithium carbonate equivalent (LCE) to US supply chains for decades2 (Table 1).
Jindalee is pleased to provide an update on US government funding opportunities for McDermitt.
Grant applications lodged with two US Government agencies (Defense and Energy)
Jindalee advises that the Company has lodged applications for non-dilutive grant funding with both the Department of Defense (DoD) and the Department of Energy (DoE) (Battery Manufacturing and Recycling Grant).
If successful, the DoD grant application is expected to co-fund an accelerated Feasibility Study and associated drilling and testwork, whilst the DoE grant application is designed to potentially co-fund the engineering, procurement, construction and development of a lithium processing facility at McDermitt.
Both grant applications have passed initial reviews by the agencies. The DoE grant application was accompanied by letters of support from Oregon and Nevada politicians and agencies, as well as potential Project partners.
The Company expects to provide updates regarding the status of applications and any potential award decision in the second half of 2024.
Substantial Government funding for US critical mineral projects continues
The US Government is committed to securing a domestic supply for critical minerals to reduce reliance on foreign sourced materials, including lithium, and is providing significant support and funding via the Inflation Reduction Act, the Defense Production Act and other initiatives as recent developments indicate.
On 14 March 2024 Lithium Americas Corp (TSX: LAC, Market Cap: C$1.5bn6) announced that it had received a conditional commitment from the DoE for a US$2.26 billion loan for financing the Phase 1 construction of processing facilities at the Thacker Pass Lithium Project3, located approximately 30km south of McDermitt (Figure 1). The loan, anticipated to cover approximately 75% of Thacker Pass’s initial capital cost, offers favourable terms with an interest rate equivalent to the US Treasury rates (0% spread) and a tenor of 24 years.
On 8 April 2024 Perpetua Resources Corp (TSX: PPTA, Market Cap: C$538m6) announced that it had received a Letter of Interest from the US Export-Import Bank for potential debt of up to US$1.8 billion for capital funding of the Stibnite Gold and Antimony Project in Idaho, USA4. This follows earlier grants of up to US$59.4 million received by Perpetua Resources from the DoD to assist with construction readiness and permitting of the Stibnite Project5.
Jindalee’s CEO Ian Rodger commented “We are very pleased with the progress of our grant applications for the McDermitt Lithium Project, particularly with the strong backing we’ve received from key stakeholders, including US politicians and potential Project Partners. The support for our applications highlights the strategic importance of our Project and its alignment with US national interests. These non-dilutive grants, if successful, promise to significantly enhance equity returns, reinforcing our strategy and amplifying the value we deliver to our shareholders.
Table 1 – Summary of 2023 McDermitt Mineral Resource Estimate at the reporting cut-off of 1,000ppmNote: totals may vary due to rounding. (Lithium carbonate equivalent (LCE) is calculated by taking the lithium value and multiplying by 5.323 to determine the molar equivalent in standard industry fashion).
Figure 1 – McDermitt Caldera: Location of McDermitt and Thacker Pass projects
Click here for the full ASX Release
This article includes content from Jindalee Lithium Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Jindalee Lithium’s flagship McDermitt Lithium Project (McDermitt) offers investors exposure to a generational, high-margin critical minerals asset. The recently completed Pre-Feasibility Study (PFS) demonstrates robust economics, positioning McDermitt as a key enabler of North America's clean energy transition and a cornerstone of the US critical minerals strategy to de-risk supply chains through increased domestic production.
Jindalee Lithium (ASX:JLL,OTCQX:JNDAF) is a pure-play lithium company with a strategic focus on the United States. Its 100 percent-owned McDermitt Lithium Project is the largest lithium deposit in the US, boasting a resource of 21.5 million tons (Mt) of lithium carbonate equivalent (LCE).
Backed by a recently released (November 2024) Pre-Feasibility Study (PFS) demonstrating very compelling economics, McDermitt is poised to play a crucial role in meeting North America’s growing lithium demand for battery materials.
As the US continues to transition to clean energy, demand for lithium is expected to exponentially increase. Jindalee’s McDermitt project, located in southeast Oregon, is a game-changer for North American lithium supply, critical for meeting the demands of a fast-growing electric vehicle and renewable energy industries with specific emphasis on developing and de-risking domestic supply chains.
McDermitt also stands to significantly benefit from the US government’s policies and incentives to boost domestic supply of critical resources. In fact, in a move that signifies the US government's support of the McDermitt Project, the US Department of Energy's Ames National Laboratory signed a Cooperative Research and Development Agreement (CRADA) with Jindalee's subsidiary HiTech Minerals to develop cutting-edge extraction methods for McDermitt. Under this agreement the US Department of Energy (DOE) will fund work aimed at reducing costs and improving sustainability outcomes for the Project. The Ames National Laboratory spearheads the DOE's Critical Materials Innovation Hub. Jindalee is also advancing an application for a grant from the US Department of Defense, which has the potential to co-fund a feasibility study and associated work programs at McDermitt.
Key milestones in the US lithium resource space also provide significant insights into the future prospects for McDermitt. Lithium Americas’ (TSX:LAC), has received a US$945 million commitment from General Motors, to fund the development, construction and operation of the Thacker Pass project in Humboldt County, Nevada, located 30km away from and in the same geological formation as Jindalee’s McDermitt Lithium Project. LAC has also closed a $2.3 billion US Department of Energy loan in late 2024 to fund approximately 75 percent of the construction capital cost (US$2.93B).
Another lithium resource developer in Nevada, Australia-based Ioneer (ASX:INR) is expected to receive a total investment of US$700 million through a new joint venture with Sibanye Stillwater, in addition to a conditional loan commitment of US$650 million from the US Department of Energy, both acting to strengthen the development of its flagship Rhyolite Ridge lithium-boron project.
In late 2024, ASX-listed company Patriot Battery Metals Inc (ASX:PMT) announced a C$69 million investment, strategic partnership and offtake agreement with global automotive group Volkswagen which aims underpin the development of Patriot’s upstream lithium project in Quebec, Canada.
These are just a few examples of current market dynamics that point to rapidly accelerating lithium resource development in the US and Canada demonstrating the investment appetite of strategic partners, as well as support from the US government via low-cost concessional debt funding.
An experienced management team, with the right blend of experience and expertise in project development, corporate administration and international finance provides Jindalee with the leadership to fully capitalise on the potential of its assets.
The economic metrics revealed in the PFS paint a compelling picture of the McDermitt Lithium Project's potential:
Production Capacity: The Project is set to produce 1.8 Mt of battery-grade lithium carbonate over its first 40 years, with an annual output forecast of 47,500 tonnes per annum (tpa) in the initial 10 years, and averaging 44,300 tpa over the first 40 years.
Financial Metrics: The Project boasts a post-tax net present value (NPV) of US$3.23 billion at an 8 percent discount rate, with an internal rate of return (IRR) of 17.9 percent. These figures underscore the Project's strong economic viability.
Payback Period: Investors can expect a payback period of less than five years, a relatively short timeframe for a project of this magnitude.
Robust margins: Exceptional EBITDA margins of 66 percent over the first 10 years of operations, with C1 costs in the bottom half of industry and 17 percent pre-tax net operating cashflow margins (including sustaining capital) at current bottom of the cycle spot prices (October 2024 spot of US$10,888/t of lithium carbonate)
Significant future upside. Several opportunities identified in the PFS have potential to significantly enhance returns, which includes process optimisation to reduce opex/capex as well as potential for production of by-products. Additionally, there remains significant optionality to further exploit the ore body, with only ~15 percent of the current resource included in the PFS schedule (on contained metal basis).
The PFS estimates a total project cost of US$3.02 billion, which includes a conservative 21 percent contingency provision estimated on P70 basis (70 percent probability total capital cost will be lower), prepared by US headquartered global engineering and construction firm, Fluor Corporation. This substantial investment is expected to provide the platform for a long life, stable supply of domestically sourced battery grade lithium chemicals, which is expected to be highly attractive to partners in the battery value chain.
The McDermitt Project is located in Malheur County on the Oregon-Nevada border and is approximately 35 kilometres west of the town of McDermitt. The 100-percent-owned asset covers 54.6 square kilometres of claims at the northern end of the McDermitt volcanic caldera.
The Project is characterised by its unique sedimentary lithium deposits, primarily composed of lithium-bearing clays, a geological formation that sets McDermitt apart from many other lithium projects worldwide. This sedimentary nature of the deposit offers several advantages, including:
The lithium-rich clays at McDermitt are part of a broader geological context that includes volcanic tuffs and sedimentary rocks. This geological setting is indicative of a complex depositional history, which has resulted in the concentration of lithium in economically viable quantities.
The 2023 mineral resources estimate (MRE) for McDermitt contains a combined indicated and inferred mineral resource inventory of 3 billion tonnes at 1,340 parts per million (ppm) lithium for a total of 21.5 Mt LCE at 1,000 ppm cut-off grade. As part of the PFS, a maiden ore reserve estimate was declared of 251 @1,761 ppm Lithium for 2.34 Mt LCE (representing only ~11 percent of MRE)
Ian Rodger is a qualified mining business executive with almost 15 years of experience in various roles including as a mining engineer for Rio Tinto across two large greenfield mine developments, before successfully transitioning into mining corporate finance where he held Executive and Director positions at RFC Ambrian overseeing origination and management of numerous mandates across a range of corporate advisory roles. Ian was the project director for Oz Minerals (ASX:OZL) where he made significant contributions to successfully define the value potential of the West Musgrave nickel/copper province through the delivery of a portfolio of growth studies. Most notably, he led technical, market and partnership development workstreams, successfully confirming value potential for producing an intermediate Nickel product for the battery value chain.
Ian holds a Bachelor of Mining Engineering from the University of Queensland, a Masters of Mineral Economics from Curtin University and is also a graduate of the Australian Institute of Company Directors and member of the Australasian Institute of Mining and Metallurgy.
Lindsay Dudfield is a geologist with over 40 years of experience in multi-commodity exploration, primarily within Australia. He held senior positions with the mineral divisions of Amoco and Exxon. In 1987, he became a founding director of Dalrymple Resources NL and spent the following eight years helping acquire and explore Dalrymple’s properties, leading to several greenfield discoveries. In late 1994, Lindsay joined the board of Horizon Mining NL (Jindalee Lithium’s predecessor) and has been responsible for managing Jindalee Lithium since inception. Lindsay is a member of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, the Geological Society of Australia and the Society of Economic Geologists. He is also a non-executive director of Jindalee spin-out companies Energy Metals (ASX:EME), Dynamic Metals (ASX:DYM) and Alchemy Resources (ASX:ALY).
Wayne Zekulich was appointed to the board as Chair on 1 February 2024. He holds a Bachelor of Business and is a fellow of the Institute of Chartered Accountants. Zekulich is a consultant and non-executive director who has substantial experience in advising, structuring and financing transactions in the infrastructure and resources sectors. He was previously the head of Rothschild in Perth, chief financial officer of Gindalbie Metals Limited, chief development officer of Oakajee Port and Rail and a consultant to a global investment bank. Currently, he is chair of Pantoro (ASX:PNR) and non-executive director of the Western Australian Treasury Corporation. In the not-for-profit sector, he is the past chair of the Lester Prize and is a mentor in the Kilfinan program.
Darren Wates is a corporate lawyer with over 23 years of experience in equity capital markets, mergers and acquisitions, resources, project acquisitions/divestments and corporate governance gained through private practice and in-house roles in Western Australia. Darren is the founder and principal of Corpex Legal, a Perth-based legal practice providing corporate, commercial and resources related legal services, primarily to small and mid-cap ASX listed companies. In this role, he has provided consulting general counsel services to ASX listed company Neometals (ASX:NMT) since 2016, having previously been employed as legal counsel of Neometals. Darren holds Bachelor's degrees in Law and Commerce and a Graduate Diploma in Applied Finance and Investment.
Paul Brown has over 23 years of experience in the mining industry, most recently with Mineral Resources (ASX:MIN) where he was chief executive – lithium, and chief executive – commodities. Paul has held senior operating roles with Leighton, HWE and Fortescue (ASX:FMG) and has a strong track record in technical leadership, project/studies management, and mine planning and management. Paul is currently CEO of Core Lithium Limited (ASX:CXO). He holds a Master in Mine Engineering.
Jindalee will be attending the PDAC Convention in Toronto, Canada over 2-5 March 2025
Jindalee will present to a North American investor audience at Redcloud's 13th annual Pre-PDAC Mining Showcase in Toronto over 27-28 February 2025
Redcloud is a Canadian-based investor relations group specialising in the junior resources sector
Jindalee Lithium Limited (ASX: JLL) (OTCQX: JNDAF) (Jindalee, the Company) is pleased to announce that the Company will participate in both the Prospectors and Developers Association of Canada (PDAC) Convention and the Pre-PDAC Mining Showcase, hosted by Redcloud Financial Services Inc. (Redcloud), a globally oriented resource focused financial services platform.
Jindalee can be found at booth 2606 in the Investors Exchange Exhibition Room at the PDAC Convention which will be attended by Jindalee's Chief Executive Officer, Ian Rodger. PDAC, regarded as one of the world's premier resources conferences, will run from Sunday, 2 March 2025 until Wednesday, 5 March 2025 at the Metro Toronto Convention Centre in Ontario, Canada.
Jindalee is also participating in Redcloud's Pre-PDAC Mining Showcase at the Omni King Edward Hotel in Toronto over Thursday 27 and Friday, 28 February 2025. Ian will be presenting at the Pre-PDAC Mining Showcase at 4.00pm local time on Friday, 28 February 2025. Jindalee will also be available to engage with investors in one-on-one meetings at the Pre-PDAC Mining Showcase and encourages interested investors to register for the event.
Jindalee looks forward to updating the North American mining and investment communities on progress at its 100% owned McDermitt Lithium Project which hosts one of the largest lithium resources in the U.S. The Pre-Feasibility Study at McDermitt, released in November 2024, outlines a highly robust multi-generational battery chemicals project1.
To register for the PDAC Convention visit here: https://pdac.ca/convention-2025/attending-2025/registration-2025
For more information and to register for the Pre-PDAC Conference please visit: https://redcloudfs.com/prepdac2025/
Authorised for release by the Jindalee Board of Directors. For further information please contact:
| LINDSAY DUDFIELD | IAN RODGER |
| Executive Director | Chief Executive Officer |
| T: + 61 8 9321 7550 | T: + 61 8 9321 7550 |
| E: enquiry@jindaleelithium.com | E: enquiry@jindaleelithium.com |
About Jindalee
Jindalee Lithium is an Australian company focused on developing the McDermitt Lithium Project, one of the largest lithium resources in the U.S. With 100% ownership and unencumbered offtake rights, Jindalee is strategically positioned to support America's energy security and domestic supply of critical minerals. The Company recently completed a Pre-Feasibility Study (PFS) confirming McDermitt's scale, long-life, and low-cost production potential, with strong engagement from U.S. government agencies, including the Department of Energy and Department of Defense. As a deeply undervalued lithium developer, Jindalee presents a compelling investment opportunity ahead of the next lithium market upcycle.
Competent Persons Statement
The Company confirms that it is not aware of any further new information or data that materially affects the information included in the original market announcements by Jindalee Lithium Limited referenced in this report and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. To the extent disclosed above, the Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.
Forward-Looking Statements
This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Jindalee Lithium Limited's (Jindalee's) current expectations, estimates and projections about the industry in which Jindalee operates, and beliefs and assumptions regarding Jindalee's future performance. When used in this document, the words such as "anticipate", "could", "plan", "estimate", "expects", "seeks", "intends", "may", "potential", "should", and similar expressions are forward-looking statements. Although Jindalee believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Jindalee and no assurance can be given that actual results will be consistent with these forward-looking statements.
________________________
1Jindalee Lithium ASX announcement 19/11/2024: "McDermitt Lithium Project Pre-Feasibility Study"
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241723
News Provided by Newsfile via QuoteMedia
