Jindalee's McDermitt Project Advances with Successful Drilling and US Listing Progress
Jindalee Lithium has delivered positive updates on two critical fronts for its flagship McDermitt Lithium Project in Nevada. The company successfully completed its 2025 drilling program with excellent sample recovery, while making substantial progress toward listing the asset on a US national exchange through its partnership with Constellation Acquisition Corp.
The latest developments underscore Jindalee's methodical approach to unlocking value from what ranks as one of the largest lithium deposits in the United States. With assay results expected in early Q1 2026 and metallurgical testwork planned, the company is positioning McDermitt for enhanced economics through both lithium optimisation and potential magnesium by-products.
Drilling Program Delivers High-Quality Samples
The recently completed drilling program at McDermitt focused on obtaining large diameter core samples for advanced metallurgical testing. The program comprised 5 PQ3 core holes with an 8.5cm diameter, specifically designed to provide substantial material for comprehensive testwork.
Key Drilling Achievements:
- Excellent sample recovery achieved across all drill holes
- High-quality core samples retained for both lithium and magnesium metallurgical studies
- Valuable geological and geotechnical data collected on the deposit
- All drill sites successfully rehabilitated following completion
- Core logging, cutting, and sample preparation completed
The timing positions Jindalee to receive assay results in early Q1 2026, providing investors with fresh data on both lithium and magnesium content. This dual-focus approach reflects the company's value optimisation program announced in October 2025, which aims to unlock additional revenue streams from McDermitt's significant magnesium endowment.
Furthermore, the systematic approach to resource development demonstrates how each drilling campaign builds upon previous geological understanding to enhance project economics.
US Listing Strategy Gains Momentum
Jindalee's proposed merger with Constellation Acquisition Corp I continues to advance, with both parties agreeing to extend their exclusivity period by 45 days. This extension reflects substantial progress on the binding Business Combination Agreement (BCA) and demonstrates both companies' commitment to completing the transaction.
Transaction Progress:
- Non-binding Letter of Intent signed in September 2025
- Substantial progress made on binding Business Combination Agreement
- 45-day extension to initial 90-day exclusivity period
- Both parties engaging "constructively and in good faith"
- Clear pathway being established for transaction completion
The proposed merger would create a US-listed vehicle to advance McDermitt, potentially providing enhanced access to US capital markets and institutional investors focused on domestic critical minerals projects.
"We are delighted to announce completion of the 2025 drilling program at McDermitt and thank the team for helping make the program such a success. We now look forward to sharing assay results as they become available and to commencing metallurgical testwork designed to improve lithium recoveries and investigate the potential for valuable magnesium by-products to enhance Project economics," said Ian Rodger, Managing Director and CEO.
Understanding Metallurgical Testwork in Lithium Development
Metallurgical testwork represents a critical phase in lithium project development, involving detailed analysis of how effectively lithium can be extracted from ore samples under various processing conditions. This testing determines recovery rates, processing costs, and product quality – all essential factors for project economics.
For McDermitt specifically, the metallurgical program serves dual purposes: optimising lithium extraction methods and investigating the commercial potential of magnesium by-products. The large diameter core samples obtained through the recent drilling provide sufficient material for comprehensive testing scenarios.
In addition, different processing routes and operational parameters can be evaluated to determine the most cost-effective production methods.
Key Testwork Components
| Test Type | Purpose | Outcome |
|---|---|---|
| Lithium Recovery | Determine optimal extraction methods | Enhanced recovery rates |
| Magnesium Assessment | Evaluate by-product potential | Additional revenue streams |
| Processing Routes | Compare different approaches | Cost-effective production |
| Product Quality | Assess final product specifications | Market compliance |
Why This Matters for Investors:
- Metallurgical results directly impact project economics and feasibility
- Improved recovery rates can significantly enhance project value
- Magnesium by-product potential could provide additional revenue streams
- Results inform final processing plant design and operational planning
The comprehensive nature of metallurgical optimisation could substantially enhance the project's economic profile, particularly given the scale of the resource base.
McDermitt's Strategic Position in US Critical Minerals
McDermitt represents a globally significant lithium resource with unique advantages for US-focused development. The project benefits from 100% ownership by Jindalee, unencumbered offtake rights, and strong engagement from US government agencies including the Department of Energy.
Project Highlights:
- One of the largest lithium deposits in the United States
- Pre-Feasibility Study completed in November 2024 confirming scale and economics
- Long-life, low-cost production potential
- Strategic location supporting American energy security
- Government support for domestic critical minerals development
However, the combination of resource scale, strategic location, and government backing positions McDermitt as a cornerstone asset in America's lithium supply chain development. The project's classification as a critical mineral resource has attracted attention from federal agencies seeking to reduce import dependence on lithium supplies.
Government Engagement Benefits
The US Department of Energy's involvement with the project reflects broader strategic priorities around domestic lithium production. This engagement provides several advantages:
- Policy Support: Alignment with federal critical minerals strategies
- Regulatory Clarity: Clear pathways for development approvals
- Potential Incentives: Access to government support programs
- Strategic Importance: Recognition as vital to national security interests
Investment Thesis: Positioned for the Next Lithium Cycle
Jindalee presents a compelling investment opportunity as a deeply undervalued lithium developer with a world-class asset approaching key development milestones. The company's systematic approach to project advancement, combined with strategic US listing plans, creates multiple catalysts for value realisation.
Key Investment Drivers:
- Immediate catalysts with Q1 2026 assay results and metallurgical testwork
- Dual-commodity potential through lithium-magnesium optimisation
- US listing strategy providing enhanced market access and valuation
- Government support for domestic critical minerals development
- Unencumbered asset with 100% ownership and offtake flexibility
Moreover, the upcoming assay results will provide fresh validation of McDermitt's resource quality, while metallurgical testwork could demonstrate enhanced project economics through improved recovery rates and potential by-product revenues.
Valuation Catalysts Timeline
| Catalyst | Timeline | Impact |
|---|---|---|
| Assay Results | Early Q1 2026 | Resource validation |
| Metallurgical Data | Q1-Q2 2026 | Economics enhancement |
| US Listing | H1 2026 | Market access expansion |
| BCA Completion | Q1 2026 | Transaction certainty |
The convergence of technical milestones with strategic market positioning creates a unique opportunity for investors to participate in project advancement ahead of the anticipated lithium market recovery.
Why Should Investors Track Jindalee's Progress?
Jindalee's methodical advancement of McDermitt, combined with strategic US market positioning, creates a unique opportunity in the lithium sector. The company is executing a clear development pathway while building optionality through both technical optimisation and market access strategies.
Compelling Tracking Reasons:
| Factor | Opportunity |
|---|---|
| Resource Scale | One of largest US lithium deposits |
| Development Timeline | Q1 2026 results, metallurgical program advancing |
| Market Access | US listing strategy with SPAC merger |
| Government Support | DOE engagement, critical minerals focus |
| Dual Commodity | Lithium + magnesium optimisation potential |
For instance, the systematic approach to project development, encompassing both technical advancement and strategic positioning, provides multiple pathways for value creation. The company's focus on both lithium optimisation and magnesium by-product development could significantly enhance project economics beyond current assessments.
Risk Considerations
While the project presents compelling opportunities, investors should consider several factors:
- Commodity price volatility affecting project economics
- Regulatory approvals required for US development
- Technical risks in metallurgical optimisation
- Market timing for lithium demand recovery
- Execution risk on US listing transaction
Nevertheless, the convergence of these factors positions Jindalee ahead of the anticipated lithium market recovery, with multiple pathways to value realisation through technical advancement, market positioning, and strategic partnerships.
Jindalee Lithium has positioned itself as a premier US lithium developer with a world-class asset, systematic development approach, and strategic market access plans. With Q1 2026 assay results and advancing US listing strategy, the company offers compelling upside potential ahead of the next lithium cycle.
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