Jindalee Lithium Limited (ASX:JLL) commences large diameter drilling at McDermitt

Jindalee Lithium (ASX:JLL) has commenced a large diameter core drilling program at its 100 percent owned McDermitt Lithium Project in the United States, marking the first drilling activity at the site since the current mineral resource estimate was released in February 2023.

The work follows a period of environmental study, metallurgical testwork and a pre-feasibility study completed in late 2024, and represents a return to collecting new physical data to refine the project’s technical and economic parameters.

Highlights

• Large diameter PQ core drilling underway

• Samples to support metallurgical testwork focused on improving lithium recoveries

• Magnesium by-product potential to be further assessed through ongoing optimisation work

• Geological and hydrological data to be updated

• Assay results for lithium and magnesium expected early Q1 2026

The McDermitt deposit is described as one of the largest known lithium resources in the United States and remains of strategic relevance given ongoing policy efforts aimed at establishing domestic supply chains for critical battery minerals.

Following the mineral resource estimate announcement in early 2023, the company progressed a sequence of technical and regulatory activities including environmental baseline work and metallurgical studies, culminating in a pre-feasibility study in November 2024.

The current program comprises five PQ diameter core holes, designed to recover large, representative samples suitable for detailed metallurgical optimisation testwork, including the refinement of lithium extraction methods and the assessment of whether the project’s magnesium endowment can be recovered economically as a by-product.

The magnesium evaluation forms part of a value optimisation program announced in late 2025 and is considered relevant to the project’s broader economics.

The new drilling is also expected to provide updated geological and hydrological information.

These datasets are commonly required where a project is advancing toward more detailed mine planning and permitting work, as they inform mine design considerations, water management requirements and processing assumptions.

Returning to drilling after a three-year interval allows the company to correlate the latest study findings with fresh on-ground geological observations.

Jindalee Lithium Managing Director and Chief Executive Officer Ian Rodger said the commencement of drilling was a meaningful step in progressing the project’s next phase.

“We are delighted to confirm that drilling is underway at McDermitt, after a three-year hiatus. In addition to providing important geological data, the drilling program will deliver samples for metallurgical testwork designed to improve lithium recoveries and investigate the potential for valuable magnesium by-products to enhance project economics. We look forward to sharing the results of this work with the market as they become available.”

Assay results, including lithium and magnesium, are expected in early Q1 2026, with the outcomes to inform potential updates to process flowsheet design and economic modelling.

The commencement of drilling indicates that McDermitt has moved from a study-focused period back into active data acquisition, signalling the company’s intent to refine and potentially strengthen the technical basis of future development decisions.

The results of the metallurgical optimisation work and the evaluation of magnesium by-product potential will be important in shaping the next stage of project planning.

More broadly, the project sits within an ongoing policy context in the United States aimed at securing domestic sources of critical minerals, a factor likely to remain influential as the project continues through its development pathway.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.