New lithium discovery sends this ASX mining share soaring 22% in 2 days

Shares in the lithium miner are powering on again today…

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Key points

  • The Jindalee Resources share price has risen 22% in 2 days
  • The move comes after a successful lithium interception at its United States mine
  • A global supply shortage of lithium may be on the horizon

The Jindalee Resources Limited (ASX: JRL) share price is soaring again today on the back of 2 updates released yesterday.

The miner announced a pleasing interception at its US mine and a corporate snapshot of its latest activities.

These announcements coincided with the Jindalee Resources share price shooting up by 16% yesterday. And the gains are continuing today. At the time of writing, the Jindalee Resources share price is up a further 5.15% to $3.06.

Let's take a look underground…

Multiple new near-surface lithium intercepts

Yesterday, the miner announced it had intercepted 6 mineralised zones of lithium (Li) at its McDermitt Lithium Project. The mine is 100% owned by Jindalee and is located in Malheur County on the Oregon-Nevada border.

Jindalee describes McDermitt as a "low cost mining operation" and "one of the largest lithium deposits in the US".

The site hit "six mineralised zones of lithium with a best result of 29.0m of 1,801 ppm Li that included a 12.2m wide zone grading over 2,500 Li".

These results mirror the mineral estimate predicted in April last year.

Jindalee Resources said assays from 6 diamond holes are still pending. The results are expected to follow this quarter.

Growing global demand for lithium

Based on the miner's scoping study in September, the US site has the potential "to support a viable standalone lithium mining and processing operation" and to be a "long-life source of future supply to the rapidly growing US battery manufacturing industry".

Looking forward, the next phase of drilling for the year is ready to go with all permits acquired.

In its corporate report yesterday, Jindalee Resources reported a cash holding of $8.7 million, no debt, and an enterprise value of $129.5 million.

The miner also believes a "significant supply shortage" is on the horizon. This will be driven by rising demand for electric vehicles and by US President Joe Biden's commitment to zero emissions by 2050.

Jindalee Resources share price snapshot

Over the past 12 months, the Jindalee Resources share price has increased by 53%. It saw its highest price of $3.90 in August and its lowest of $1.40 in February last year.

The company has a market capitalisation of $168 million.

Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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