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Jindalee Resources (ASX:JRL) shares soar after Tesla’s “battery day”

Mining
ASX:JRL
25 September 2020 14:00 (AEST)

Jindalee Resources (JRL) believes the recent Tesla “battery day” has highlighted the potential of the McDermitt Project in Oregon.

Elon Musk’s electric vehicle company had its “battery day” presentation and told its plans to invest in the localisation of cathode supply chain and production in the United States.

The McDermitt lithium project is in the lacustrine sediments within the McDermitt Caldera, a Miocene age volcanic crater which is home to the largest and highest grade sediment hosted lithium deposits in the U.S.

Strategically, the project is in close range with Tesla’s Gigafactory.

McDermitt was pegged by the company in 2018 after an extensive search across the Western USA.

In November 2019, Jindalee announced an inferred mineral resource of 150 million tonnes at 2000 parts per million (ppm) of lithium and an exploration target range (ETR) of 180 million to 330 million tonnes at 1800 to 2200 parts per million lithium.

The company has now submitted a proposed drilling program to the Bureau of Land Management (BLM) for permitting.

The program includes 21 holes, with an aim to increase the current mineral resource, ETR, and convert inferred resources to indicated status ahead of a possible scoping study.

BLM employees visited the project mid-September and Jindalee received positive feedback. Once received final approvals, with drilling expected to commence in October.

Jindalee is up 47.7 per cent on the market this afternoon and is trading for 65 cents per share at 2:37 pm AEST.

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