Drilling To Commence At McDermitt Lithium Project

Jindalee Resources Limited (ASX:JRL) (Jindalee, the Company) is pleased to advise that it has contracted Alford Drilling from Elko, Nevada to undertake a diamond core drilling program at Jindalee’s 100% owned McDermitt Lithium Project in Oregon, USA (McDermitt, Project).

• Diamond drill rig contracted for McDermitt infill drilling program
• Drilling to commence 1 November 2023, subject to final approvals
• Drilling to provide geotechnical information for McDermitt PFS – due for completion 1H CY 2024
• McDermitt is the largest lithium deposit in the US by contained lithium with 21.5Mt Lithium Carbonate Equivalent (LCE) in Mineral Resource¹

The proposed drilling program comprises five HQ triple tube core holes collared within, or immediately adjacent to, conceptual Pit Shell 5 (nominal 20 years)² and is primarily designed to provide geotechnical information for the Pre-Feasibility Study³ (PFS), as well as confirm data from earlier reverse circulation (RC) drilling (Figure 1). Drilling is expected to commence 1 November 2023, subject to receipt of final approvals from the Bureau of Land Management, with assays from the drilling expected early 2024.

McDermitt has an Indicated and Inferred Mineral Resource Inventory of 3.0 Billion tonnes at 1,340ppm Li for total of 21.5 Million tonnes LCE at 1,000 ppm cut-off grade¹ (Table 1). At 21.5 Mt LCE, McDermitt is the largest lithium deposit in the US by contained lithium in Mineral Resource, and a globally significant resource.

McDermitt is located at the northern end of the McDermitt Caldera, approximately 35km north of the Thacker Pass deposit, owned by Lithium Americas (TSX: LAC). The Thacker Pass Project (Measured, Indicated and Inferred resources of 19.1Mt LCE⁴) is fully permitted and currently under construction⁵.

On 3 October 2023 Lithium Americas announced the separation of its Argentinian assets as Lithium Americas Argentina (TSX: LAAC) and the execution of a second tranche subscription agreement with General Motors (NYSE: GM) whereby GM will purchase US$330M in LAC shares, taking GM’s total investment in LAC to US$650M⁶. GM is now LAC’s largest shareholder with 9.4% of issued capital and has an agreement with LAC to acquire 100% of lithium carbonate from Phase 1 production (40,000 tpa LCE) at Thacker Pass⁴. At the close of trading on TSX on 6 October 2023, Lithium Americas had a market capitalisation of C$2.51B (A$2.87B).

Jindalee is very encouraged by recent progress at the Thacker Pass Project, which has positive implications for the potential development of McDermitt.

Figure 1 - Plan view of the McDermitt Lithium Project with 2023 Mineral Resource1 (at 1523mRL), conceptual pit shells (Pit Shell 5: Years 0-20) and proposed drillholes.

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