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.”
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View original content: https://www.newswire.ca/en/releases/archive/October2021/13/c3054.html 
Figure 1a (left): Brazilian geologist Vitor Araujo Alves showing the spodumene rich portion of the zoned pegmatite discovered at the Esperança Property. Figure 1b (right): Large elongate spodumene crystals (Spd) up to 50cm in length showing homogeneous growth patterns amongst a quartz (Qtz) and Feldspar (Fdsp) rich matrix
