The Jindalee Resources Limited (ASX: JRL) share price is going bonkers. It’s currently up around 30%, though it was up 50% earlier.
Jindalee Resources is an exploration business with direct and indirect exposure to lithium, gold, base and strategic metals, iron ore, uranium and magnesite.
Why is the Jindalee Resources share price going bananas?
Jindalee has upgraded its mineral resource estimate (MRE) at the company’s 100% owned McDermitt Lithium Project in the US after completing drilling in December 2020.
The resources company said McDermitt now has a combined indicated and inferred mineral resource inventory of 1.43 billion tonnes at 1,320ppm (parts per million) lithium for a total of 10.1 million tonnes of lithium carbonate equivalent (LCE) at 1,000ppm cut-off grade (COG).
This makes it the largest lithium deposit in the US by contained lithium in lithium resource, which is bigger than Lithium Americas’ (TSX: LAC) Thacker Pass deposit.
The company said that it’s well funded to advance the development of the McDermitt Project with additional drilling, mining and metallurgical studies planned.
Jindalee has increased confidence in the ability to reduce its operating costs as a result of the announcement, which impacts directly and positively upon the reasonable prospects for eventual economic extraction.
This is certainly a very exciting announcement by Jindalee and it’s no surprise the market has sent it a lot higher. Time will tell how much economic value that the ASX company can get out of this resource.
But there are plenty of great ASX growth shares that are already making strong profit.