The Jindalee Resources Limited (ASX: JRL) share price is on watch today after the company shared good news about its McDermitt Project. Jindalee has increased the size of its McDermitt Project – one of the largest lithium deposits in the US – by 67%.
The news comes at a good time for the Jindalee share price. It suffered a 2.44% drop yesterday, closing at $1.60.
Let's look further into the mineral exploration company's announcement this morning.
McDermitt Project
The company stated that its McDermitt Project now covers 54.6 square kilometres, after it received confirmation of an additional 271 claims.
Jindalee has previously stated that the McDermitt Project's shallow, flat lying lithium deposits contained in soft rocks suggest mining there will come at a low cost.
Initial test work also found lithium mined at McDermitt has high recoveries from conventional sulphuric acid leaching at low temperature and low atmospheric pressure.
The company has also noted that the US has an increasing demand for lithium but only has one mine in operation, leaving the US to import most of its lithium. Jindalee hopes that it can fill the gap in the US market for locally mined lithium, avoiding tariffs in the process.
As the Project straddles the border of Nevada and Oregon, 88 of the new claims fall in Nevada. Jindalee believes this increases the potential development options at McDermitt.
Jindalee has 100% ownership of the McDermitt Project via its wholly-owned subsidiary. It expects an updated mineral resource estimate in early April.
Jindalee share price snapshot
Today's news may be what the Jindalee share price needs to shift it back into gear. It's shown poor performance over the last month, having dipped by 8.5%.
Although, even after that drop, the Jindalee share price is still up by 102.5% year to date. It's also up by 416% over the last 12 months.
Jindalee has a market capitalisation of around $82 million, with approximately 51 million shares outstanding.
