Name of the Project
McDermitt lithium project.

Location
Malheur County, on the Oregon-Nevada border, in the US.

Project Owner/s
Exploration company Jindalee Resources.

Project Description
A November 2024 prefeasibility study (PFS) confirmed the project’s strong economic returns. The project has a maiden probable ore reserve of 251-million tonnes at1 751 parts per million of lithium, containing 2.34-million tonnes of lithium carbonate equivalent.

The PFS processing schedule supports a 63-year production life; however, the production target and forecast financial information excludes any production beyond 40 years.

The PFS envisions a conventional openpit mining method, with a low strip ratio and no blasting required owing to the soft and friable nature of the ore and waste material.

Production is estimated at 1.8-million tonnes of battery-grade lithium carbonate over the life-of-mine. Average lithium carbonate production over the first ten years of operation is estimated at 47 500 t/y. Over the first 40 years of operation, the project is expected to produce about 44 300 t/y.

The full 63-year PFS processing schedule is based on processing 79% probable ore reserves, 3% indicated resources and 18% inferred resources, with forecast total production of 2.5-million tonnes of lithium carbonate.

Potential Job Creation
The project is expected to create 1 000 jobs during construction and 600 jobs during operation.

Net Present Value/Internal Rate of Return
The PFS estimates an after-tax net present value of $3.23-billion at an 8% discount rate and an internal rate of return of 17.9%, with a payback of five years.

Capital Expenditure
Preproduction capital is estimated at $3.02-billion, including 21% contingency.

Planned Start/End Date
Construction and commissioning are expected to take three years, with prestrip
mining starting in the third year.

Latest Developments
Jindalee has signed a nonbinding letter of intent (LoI) with Constellation Acquisition Corp, a US-based special purpose acquisition company (SPAC) sponsored by Antarctica Capital, to list its McDermitt project on a US national securities exchange.

The proposed transaction involves a merger of HiTech Minerals, Jindalee’s US subsidiary, with Constellation to form a new company, NewCo, assigning an equity value of $500-million to Jindalee’s US assets. The deal contemplates a capital raise of $20-million to $30-million, with $4-million committed by affiliates of Antarctica Capital, and aims to provide long-term access to US capital markets for the project’s development.

The LoI includes an initial 90-day exclusivity period during which the parties will complete due diligence and negotiate a binding business combination agreement, targeted for execution in the fourth quarter of 2025.

Completion will remain subject to customary closing conditions, including regulatory approvals from the US Securities and Exchange Commission, the ASX and the listing of NewCo on a US national exchange, with a potential close in the first half of 2026.

If completed, the transaction will create a US-listed vehicle with direct exposure to one of the largest lithium resources in the US and provide funding to advance the McDermitt feasibility study. 

Key Contracts, Suppliers and Consultants
Fluor (processing studies and capital expenditure); and Cube Consulting (pit designs and mining schedule).

Contact Details for Project Information
Jindalee Resources, tel + 61 8 9321 7550 or email enquiry@jindalee.net.