Jindalee Lithium

McDermitt PFS Demonstrates Multi-Decade Competitive Source of US Lithium Carbonate

Jindalee Lithium Limited (Jindalee, the Company; ASX: JLL, OCTQX: JNDAF) is pleased to advise that its recently completed Pre-Feasibility Study (PFS), on the Company’s 100% owned McDermitt Lithium Project (currently the largest lithium Resource in the USA) (McDermitt or the Project), has demonstrated strong economic returns over an initial project life in excess of 40 yearsi


Highlights include:

  • Lithium Carbonate Production: Forecast production of 1.8 million tonnes battery grade Lithium Carbonate over first 40 yearsi, supporting the growing US battery supply chain
  • Average Annual Lithium Carbonate Production:
    • 47.5ktpa in the first 10 yearsi of operation (C1 unit cost US$8,080/t of lithium carbonate)ii
    • 44.3ktpa in the first 40 yearsi of operation (C1 unit cost US$8,670/t of lithium carbonate)ii
  • Strong Financial Metrics (first 40 yearsiii): Ungeared, using flat US$24,000/t lithium carbonate priceiv
    • Post-tax NPV8 of US$3,229Mv
    • Post-tax IRR of 17.9%
    • Payback period under 5 yearsvi
    • NPV break even pricevii of ~US$14,600/t of lithium carbonate

Note: PFS price assumption for lithium carbonate is based on long term incentive priceiv which exceeds current Chinese spot pricexiii

  • Generational Project with Life in Excess of 40 years: The PFS processing schedule (Processing Schedule) supports a 63 year production life, however the production target and forecast financial information excludes any production post 40 yearsi
  • Processing Studies and Capital Estimate prepared by Fluor Corporation (Fluor)viii: US$3.02B capital estimate, including 21%ix contingency, prepared by Fluor - a leading US and global engineering and construction company with deep experience in US sedimentary lithium projects
  • EBITDAx Marginxi: 66% over the first 10 yearsi of operations, with C1 costs in the bottom half of industryxii and 17% pre-tax net operating cashflow margins (including sustaining capital) at current spot pricesxiii
  • Maiden Probable Ore Reserve (JORC 2012) of 251Mt @ 1,751ppm lithium, containing 2.34Mt of Lithium Carbonate Equivalent (LCE)xiv, accounts for 79%xv of forecast production in the PFS Processing Schedule but represents only ~10% of current Mineral Resource on a contained LCE basis, highlighting future optionality
  • Cost Reduction and Sustainability: Opportunities for cost reduction and enhanced sustainability outcomes through the recently announced strategic agreement with the US Department of Energyxvi
  • Potential Partnerships: PFS completion allows for deeper engagement with a broader pool of potential strategic funding partners as well as the US Government agencies, which continue to actively support domestic US critical minerals production

Jindalee’s CEO Ian Rodger Commented:

The completion of this PFS is a pivotal milestone for Jindalee and our wholly owned McDermitt Lithium Project, underscoring McDermitt’s strategic potential as a large-scale, long-life competitive source of “American-made” lithium chemicals for the US battery supply chain.

Among the study's key achievements is the successful bench-scale test work, which validated our flowsheet and confirmed the production of battery-grade lithium carbonate with high recovery rates. While the PFS demonstrates McDermitt’s compelling value, we remain committed to further enhancing cost efficiency and sustainability as we responsibly advance the Project, delivering value for all stakeholders.

We are excited by the recent finalisation of Section 45X tax credit regulations under the Inflation Reduction Act, which represents a significant shift in support for domestic lithium projects. By expanding eligible costs specifically for integrated mining and refining operations—those producing a finished critical mineral product like lithium carbonate—the policy now more effectively targets projects like McDermitt, which is designed to produce battery-grade lithium chemicals domestically. This alignment with US energy security goals reflects a commitment to reducing dependency on foreign suppliers by incentivising long-life, fully integrated supply chain solutions within the US.

The completion of the PFS delivers, for the first time, the production metrics and cost estimates needed to engage meaningfully with potential strategic partners, accelerating discussions with a solid technical and financial foundation. It also provides a catalyst for re-engaging with US government agencies on potential future funding, building on our current Department of Defense grant application, which could co-fund the next phase of development.

Jindalee has an exciting 12 months ahead as we advance our Exploration Plan of Operations, targeted for mid- CY2025. This will enable a significant infill drilling campaign to inform a future feasibility study and associated test work. With a robust PFS and encouraging early interest from prospective partners, we look forward to building on this momentum as we evaluate the next steps for McDermitt.

I extend my sincere thanks to the Jindalee team and our consulting partners, Fluor Corporation and Cube Consulting, whose expertise was instrumental in delivering the PFS.”


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.

JLL:AU
Jindalee Lithium

Jindalee Lithium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Jindalee Lithium

Jindalee Lithium


Keep reading...Show less

Advancing America’s largest lithium resource to underpin the US battery supply chain

Jindalee to Participate in PDAC Convention and Redcloud's Pre-PDAC Mining Showcase

Jindalee to Participate in PDAC Convention and Redcloud's Pre-PDAC Mining Showcase

  • 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

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Lithium periodic symbol and Canadian flag.

Top 5 Canadian Lithium Stocks of 2025

The lithium market continued to battle headwinds during the first quarter of 2025 as residual oversupply weighed on prices, pushing them to a four year low.

Weaker-than-expected demand to start the year also added pressure to the oversupplied market, resulting in the lithium carbonate CIF North Asia price to fall below US$9,550 per metric ton, its lowest point since 2021.

Analysts have suggested the persistent downturn is the signaling of a market bottom. This theory is further supported by a projected production reduction that will help absorb market oversupply.

Keep reading...Show less
Green blocks with leaves on them push purple blocks with "CO2" written on them.

Funding the Energy Transition: The Role of Public and Private Finance in Building Supply Chains

The energy transition demands substantial funding as participants look to build out infrastructure and supply chains, but experts say new solutions are emerging to help navigate this landscape.

During the "Financing the Energy Transition" panel at the Benchmark Summit, participants discussed the role of government and public sector investment, as well as the outlook for Canada's electric vehicle (EV) supply chain.

Moderated by Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, the discussion at the Toronto-based event opened with a snapshot of Canada’s EV battery supply chain buildout.

Keep reading...Show less
International Lithium Chairman and CEO John Wisbey.

International Lithium Plans PEA on Rubidium Resource at Raleigh Lake Project, CEO Says

John Wisbey, CEO of International Lithium (TSXV:ILC), discusses the company's strategic sale of its Irish lithium property, progress on the Raleigh Lake lithium-rubidium project in Canada and expansion efforts in Zimbabwe.

Lithium Universe

Lithium Universe


Keep reading...Show less
Lithium periodic symbol and powder overlayed with world map.

Top 4 Largest Lithium Reserves by Country

Those interested in the lithium sector and investing in lithium stocks are often curious about which countries are the top producers of the battery metal, but they may not stop to consider the top lithium reserves by country.

Major lithium-producing countries are, of course, home to a large number of lithium companies. Many of the world’s top lithium producers also hold significant reserves, and their reserves can give an idea of how much room those countries have to grow. At the same time, nations with high reserves may become more significant lithium players in the future.

Looking forward, lithium demand is expected to continue increasing. That’s because, together with metals such as cobalt, lithium is a key raw material in the lithium-ion batteries used to power electric vehicles, and it is also essential for the energy storage sector.

Keep reading...Show less
Jindalee Lithium

Jindalee Lithium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×