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Overview
Jindalee Lithium (ASX:JLL, OTCQX:JNDAF) is an Australia-based exploration and development company advancing North America’s largest lithium deposit. After a spinout of its Australian assets, Jindalee has become a pure-play lithium company focused exclusively on its promising 100-percent-owned McDermitt project. Jindalee recognizes the vast opportunity for lithium projects in the US as the country progresses towards its sustainable energy transition and developing a robust domestic supply chain for critical minerals.
The United States currently produces approximately 5,000 tonnes of lithium per annum — less than two percent of the world’s total production. However, as the US strives to transition to clean energy, demand for lithium will continue to increase as this critical mineral is necessary to achieve the country’s net-zero goals. Fortunately, the US is a favorable mining jurisdiction and actively supports new projects’ advancement to strengthen its domestic supply chain.
Jindalee’s McDermitt asset, located in southeast Oregon, contains a unique type of lithium mineralization. Most lithium projects in North America are lithium brine or pegmatite deposits; however, the McDermitt project is an unconventional sediment-hosted lithium asset.
Sediment-hosted lithium deposits such as McDermitt are long-life assets with low strip ratios and low mining costs. Jindalee can leverage this advantage over other lithium assets, both in terms of reaching production faster and reducing operating expenses.
There is currently no commercially operating sediment-hosted lithium project in North America. Two recently announced projects, however, are under development and demonstrate McDermitt’s future trajectory as both companies move toward production.
The 2023 mineral resources estimate (MRE) for McDermitt contains a combined indicated and inferred mineral resource inventory of 3 billion tonnes at 1,340ppm lithium for a total of 21.5 million tonnes lithium carbonate equivalent (LCE) at 1,000 ppm cut-off grade. 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, with the deposit remaining open to the west and south.
In June 2023, Jindalee commenced a pre-feasibility study (PFS) on the McDermitt Lithium Project appointing Fluor Corporation as lead engineer. The company expects completion of the PFS by mid-2024.
An experienced management team, with the right blend of experience and expertise in geology, corporate administration and international finance, leads Jindalee to fully capitalize on the potential of its assets.
Company Highlights
Jindalee Lithium Limited is a pure-play lithium exploration and development company focusing on its flagship McDermitt Lithium Project, currently the largest lithium deposit in North America.The United States has ambitious electrification goals but lacks the critical minerals to reach them. Jindalee aims to strengthen the North American supply chain to enable the country to reach net-zero emissions targets.Globally, most of the lithium is currently sourced from either pegmatite or lithium brine deposits. The company’s McDermitt deposit, however, is sediment-hosted, an emerging style of lithium deposit with the potential to be a long-life, low-cost source of lithium.There are presently no sediment-hosted lithium assets in North America that have reached production. Jindalee is ideally positioned to help fill this void in the market.Other companies in North America are moving towards production, and their progress indicates Jindalee’s future trajectory.An experienced management team leads Jindalee towards capitalizing on the potential of its assets.
Key Project
McDermitt Lithium Project
The McDermitt Project is located in Malheur County on the Oregon-Nevada border and is approximately 35 kilometers west of the town of McDermitt. The 100-percent-owned asset covers 54.6 square kilometers of claims at the northern end of the McDermitt volcanic caldera. Following positive results from its 2022 drill campaign, the resource at McDermitt has increased to 21.5 million tonnes LCE, making McDermitt the largest lithium deposit in North America.
Project Highlights:
Rare Sediment-hosted Lithium Deposits: The McDermitt asset supports low-cost mining operations due to its flat-lying sediments. This type of lithium deposit is amenable to low-cost operations focusing on crushing, while still producing excellent metallurgical results.Encouraging 2022 Results: The 2022 drilling campaign was highly successful, intersecting broad lithium intercepts from shallow depths in most holes, including:182.2 meters at 1,197 from 21.4 meters131.6 meters at 1,219 from 21.9 meters68.6 meters at 1,669 from 0 meters50.3 meters at 1,512 from 0 metersFluor recommended processing route: In March 2023, US engineering group Fluor reviewed all testwork undertaken at McDermitt and recommended beneficiation and acid leaching as the optimal processing route. Further testwork is now underway.PFS in progress: Jindalee has appointed Fluor Corporation to commence the PFS for McDermitt, set to be completed by mid-2024.
Management Team
Ian Rodger – Chief Executive Officer
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. Rodger 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.
Rodger 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.
Justin Mannolini – Non-executive Chairman
Justin Mannolini was appointed to the Jindalee Lithium board as a non-executive director in September 2013, and was appointed chairman in July 2016. Mannolini is a partner in the corporate advisory group of Australian law firm Gilbert + Tobin. He was previously an executive director with Macquarie Capital and was responsible for cross-industry coverage of the Western Australian market. Prior to joining Macquarie, Mr Mannolini was managing director and head of Gresham Advisory Partners’ Perth office, and before that, a partner in the mergers and acquisitions group of Australian law firm Freehills. Mannolini was an inaugural director of the Northern Australia Infrastructure Facility, a $5-billion fund set up by the Australian Government to encourage population growth and economic development in northern Australia. As a lawyer and investment banker, Mannolini has more than 20 years of experience in corporate finance ranging across industry sectors and product lines, including mergers and acquisitions transactions and general strategic advisory mandates for companies in the resources sector. Mannolini has a combined degree in commerce and law (with honors) from the University of Western Australia and a Master of Laws from the University of Cambridge (Queens College).
Darren Wates – Non-executive Director
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. Wates 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, Wates has provided consulting general counsel services to ASX listed company Neometals Ltd (ASX:NMT) since 2016, having previously been employed as legal counsel of Neometals. Wates holds bachelor’s degrees in law and commerce and a graduate diploma in applied finance and investment.
Paul Brown – Non-executive Director
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. Brown has held senior operating roles with Leighton, HWE and FMG and has a strong track record in technical leadership, project/studies management and mine planning and management. Brown is currently CEO of Hastings Technology Metals (ASX:HAS). Brown holds a Master in Mine Engineering.
Lindsay Dudfield – Executive Director
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, Dudfield joined the board of Horizon Mining NL (Jindalee Lithium’s predecessor) and has been responsible for managing Jindalee Lithium since inception. Dudfield 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 Energy Metals (ASX:EME), Dynamic Metals (ASX:DYM) and Alchemy Resources (ASX:ALY).
Brett Marsh – VP Geology and Development (US)
Brett Marsh is an AIPG certified professional geologist and a registered member of the Society for Mining, Metallurgy and Exploration (SME) with over 25 years of diverse mining and geological experience. He has worked for and held senior leadership roles for Kastan Mining, Luna Gold, Kiska Metals, Newmont, Freeport-McMoRan, Phelps Dodge, ASARCO and consulted to deliver numerous NI 43-101 technical reports. Marsh has demonstrated the ability to deliver results in culturally diverse and geographically difficult environments, such as Brazil, Peru, Chile, Democratic Republic of Congo, Ghana, Tanzania, Indonesia, Australia, and has also worked in remote areas of Alaska. He has managed all phases of the mining lifecycle including greenfield and brownfield exploration, project development (including preliminary economic assessments, pre-feasibility and feasibility), project construction, mine operations, and environmental. He successfully led multi-cultural teams to develop business processes and implementation plans for many mine development and operational projects.
Carly Terzanidis – Joint Company Secretary
Carly Terzanidis has 20 years of prior experience in the financial services industry, having been employed by Euroz Hartleys, DJ Carmichael and Shaw and Partners. Terzanidis’ recent experience has been in corporate services and in the role of company secretary for resources-focused entities. Terzanidis acts as company secretary for Alchemy Resources (ASX:ALY) and Viridis Mining and Minerals (ASX:VMM). Terzanidis holds a Bachelor of Commerce with majors in accounting and corporate administration, and a graduate diploma in applied corporate governance.