Jindalee Lithium Ltd Drilling Results Confirm Exceptional McDermitt Grades

Jindalee Lithium Delivers Outstanding Drilling Results at McDermitt Project

Jindalee Lithium Limited (ASX: JLL) has announced exceptional results from its 2025 core drilling program at the McDermitt Lithium Project, with all five holes returning strong lithium and magnesium intercepts from shallow depths. The standout Jindalee Lithium Ltd drilling results include 110.6m @ 1,519 ppm Li from just 23.0m depth and 66.0m @ 1,599 ppm Li from surface, confirming the high-grade, near-surface nature of this world-class lithium deposit.

The drilling program successfully achieved its dual objectives: collecting large-diameter core samples for advanced metallurgical testwork and validating previous reverse circulation (RC) drilling results through twinning exercises. With excellent correlation between core and RC results now confirmed, Jindalee has strengthened confidence in its extensive drilling database covering one of the largest lithium deposits in the United States.

Exceptional Drilling Results Across All Five Holes

The 2025 core drilling program delivered consistently impressive results, with every hole intersecting significant lithium and magnesium mineralisation. The Jindalee Lithium Ltd drilling results demonstrate the robust, near-surface nature of the deposit with remarkable consistency across the tested areas.

Key Highlights

• Near-surface mineralisation: Multiple intersections starting from surface or very shallow depths

• Consistent high grades: All holes exceeded 1,400 ppm lithium with substantial widths

• Significant magnesium content: Co-product potential with grades exceeding 4% magnesium

• Excellent continuity: Results confirm the robust, laterally continuous nature of mineralisation

"We are delighted to announce assay results from the 2025 core drilling program and are particularly pleased that the holes confirm impressive intersections of near surface lithium and magnesium mineralisation." – Ian Rodger, Managing Director & CEO

Drilling Validation Confirms Resource Confidence

Three of the five core holes were strategically positioned to twin previous RC holes, providing crucial validation of Jindalee's extensive drilling database. Furthermore, the Jindalee Lithium Ltd drilling results show exceptional correlation between drilling methods, exceeding expectations and strengthening confidence in the resource database.

The strong correlation between drilling methods validates the company's resource estimation methodology and provides confidence in future drilling programs. Consequently, Jindalee will now undertake detailed geostatistical analysis to optimise drilling methods for upcoming programs, with this validation exercise providing critical technical assurance for investors.

The correlation results are particularly significant given the different sampling methods employed. In addition, core drilling provides continuous rock samples while RC drilling produces rock chips, yet the consistency in reported grades confirms the reliability of both datasets.

Understanding Sediment-Hosted Lithium Deposits

McDermitt represents a sediment-hosted lithium deposit, a geological formation where lithium-rich brines were concentrated in ancient lake beds within volcanic calderas. These deposits offer several advantages over traditional hard-rock lithium sources and represent an increasingly important segment of global lithium supply.

Formation Process

Sediment-hosted lithium deposits formed millions of years ago when volcanic activity created large depressions called calderas. These depressions filled with water, forming lakes that persisted for extended periods. As the climate changed and the lakes gradually dried up, dissolved lithium became concentrated in the remaining sediments.

At McDermitt, this process occurred within the McDermitt Caldera, a large volcanic structure that provided the ideal geological setting for lithium concentration. Moreover, the flat-lying nature of these ancient lake bed sediments creates particularly favourable mining conditions.

Key Characteristics

• Flat-lying mineralisation enables efficient, low-cost mining methods

• Near-surface occurrence reduces stripping ratios and development costs

• Large-scale, continuous orebodies support long-life mining operations

• Amenable to conventional processing using established metallurgical techniques

Investment Advantages

Sediment-hosted deposits typically offer lower capital requirements, reduced technical risk, and superior economics compared to hard-rock alternatives. The flat-lying geometry at McDermitt is particularly favourable for bulk mining methods, while the shallow depth minimises pre-production stripping requirements.

This geological setting allows for open-pit mining operations with relatively simple extraction methods. However, the consistent grade distribution reduces mining complexity and operational risk compared to structurally complex hard-rock deposits.

Strategic Value Optimisation Through Magnesium Co-Production

The Jindalee Lithium Ltd drilling results highlight the significant magnesium endowment at McDermitt, with grades consistently exceeding 4% magnesium across all intercepts. This represents a substantial opportunity for value enhancement through co-product recovery, potentially improving project economics beyond lithium alone.

Magnesium Market Opportunity

The magnesium market presents compelling opportunities for additional revenue streams:

• Growing demand driven by lightweight automotive applications and aerospace industries

• Limited supply with most production concentrated in China

• Strategic importance for US manufacturing independence

• Premium pricing potential for battery-grade and high-purity applications

Current global magnesium production faces supply chain vulnerabilities due to geographic concentration. Furthermore, US domestic production capabilities remain limited, creating strategic opportunities for projects like McDermitt that can deliver both lithium and magnesium from a single operation.

Technical Considerations

Magnesium recovery from sediment-hosted deposits typically involves similar processing routes to lithium extraction. The high magnesium grades observed in the drilling results suggest potential for economic recovery without requiring separate processing circuits, which could enhance overall project economics.

Jindalee's October 2025 announcement of a value optimisation program specifically targeting magnesium recovery positions the company to capture additional revenue streams beyond lithium production. The high-quality core samples collected will undergo comprehensive metallurgical testwork to determine optimal recovery processes.

Path to Production: Clear Development Timeline

With the completion of a Pre-Feasibility Study in November 2024, McDermitt has demonstrated its technical and economic viability. The current drilling program advances several critical development workstreams, with the Jindalee Lithium Ltd drilling results providing essential data for the next phase of development.

Immediate Priorities (2026)

1. Metallurgical Advancement

• Large-diameter core samples enable comprehensive testwork programs

• Focus on improving lithium recoveries beyond current levels

• Magnesium co-product development to enhance project economics

• Battery-grade lithium carbonate production optimisation

2. Resource Expansion

• Additional drilling planned for second half 2026

• Target resource upgrades and category improvements

• Exploration of lateral extensions and depth potential

• Integration of current drilling data into updated resource models

3. Feasibility Study Commencement

• Build upon successful Pre-Feasibility Study outcomes

• Incorporate optimised metallurgy and co-product scenarios

• Target construction-ready status by 2027-2028

• Detailed engineering and environmental permitting advancement

Strategic Positioning

McDermitt benefits from strong US government support for domestic lithium production, with active engagement from the Department of Energy. As one of the largest lithium resources in the United States, the project addresses critical strategic objectives for energy security and supply chain independence.

The project's location in Nevada provides access to established mining infrastructure, skilled labour, and supportive regulatory frameworks. In addition, this combination of technical merit and jurisdictional advantages positions McDermitt as a priority development project within the US critical minerals strategy.

Why Investors Should Follow Jindalee Lithium

The latest Jindalee Lithium Ltd drilling results reinforce McDermitt's position as one of the premier undeveloped lithium assets globally, with several compelling investment characteristics. The combination of exceptional resource scale, favourable mining characteristics, and clear development pathways creates a unique value proposition.

Competitive Advantages

Key Value Drivers

1. Resource Development

• Substantial exploration upside beyond current 21.5 Mt LCE resource

• Category upgrades from ongoing drilling programs

• Metallurgical optimisation improving project economics

• Magnesium co-product potential enhancing revenue streams

2. Strategic Positioning

• First-mover advantage in US sediment-hosted lithium

• Critical mineral designation ensuring government support

• ESG credentials through domestic supply chain development

• Infrastructure advantages within established mining jurisdiction

3. Market Timing

• Positioned ahead of next lithium market upcycle

• Undervalued relative to resource scale and development stage

• Multiple re-rating catalysts through 2026-2027

• Strategic importance driving potential government partnerships

Development Milestones Ahead

The company faces several near-term catalysts that could drive significant value recognition. For instance, metallurgical testwork results from the large-diameter core samples should provide crucial data on lithium recovery optimisation and magnesium co-product potential.

Resource expansion drilling planned for the second half of 2026 offers opportunities for category upgrades and resource growth. Furthermore, the transition from Pre-Feasibility Study to Feasibility Study represents another major milestone that could attract institutional investment interest.

Jindalee Lithium has established itself as the leading developer of sediment-hosted lithium resources in the United States, with McDermitt representing a world-class asset approaching production readiness. The combination of exceptional resource scale, favourable mining characteristics, strategic government support, and upcoming development milestones positions JLL as a compelling investment opportunity in the global lithium sector.

With proven geology, strong drilling results, and clear development pathways, Jindalee represents one of the most attractive undeveloped lithium assets available to investors. The company's 100% ownership position and unencumbered development rights provide maximum exposure to the significant value creation potential as McDermitt advances toward production.

The strategic importance of domestic lithium supply in the United States, combined with McDermitt's exceptional resource characteristics and development progress, creates a unique investment proposition in the critical minerals sector. As the project advances through feasibility studies toward construction readiness, investors gain exposure to one of the most significant undeveloped lithium resources in a tier-one mining jurisdiction.

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