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 prestripmining starting in the third year.

Latest Developments
Jindalee Lithium has launched a value optimisation programme to evaluate the recovery of magnesium as a potential by-product from the project.

The initiative aims to unlock magnesium value from what was previously treated as waste in the 2024 prefeasibility study (PFS). This positions McDermitt as a potential dual-product operation, supplying lithium and magnesium in line with US critical mineral priorities.

Magnesium has been classified by the US Geological Survey as a high-risk critical mineral, owing to its strategic importance to the defence, aerospace and automotive sectors, and the country’s heavy reliance on imports. The recent closure of the country’s last primary magnesium producer, US Magnesium, has further highlighted domestic supply vulnerability.

The programme will assess options for producing higher-value magnesium products, including precursors for primary magnesium metal.

While the PFS identified magnesium sulphate as a possible by-product, its relatively low market value has limited strategic interest. The new programme will explore downstream processing pathways to produce higher-value magnesium compounds, potentially suitable for use in magnesium metal production.

Jindalee will engage with specialist partners and US government stakeholders as part of the review. Findings from the programme will inform the project’s upcoming feasibility study and guide future updates to the market.

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.