What Is Jindalee Lithium (ASX:JLL) Drilling in Phase 1 at the McDermitt Lithium Project?

Sonal Goyal

09 October 2026 12:25 AM AEDT

What Is Jindalee Lithium (ASX:JLL) Drilling in Phase 1 at the McDermitt Lithium Project?

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Lithium clay projects need hydrogeological, geotechnical and metallurgical data before feasibility studies. Jindalee Lithium Limited (ASX:JLL) announced on 2 October 2026 that Phase 1 drilling has started at its McDermitt Lithium Project in Oregon.

Company overview

Jindalee Lithium Limited (ASX:JLL; OTCQX:JNDAF) is a West Perth-based company that owns 100% of the McDermitt Lithium Project in southeast Oregon, which it describes as one of the largest lithium resources in the United States. A 2024 pre-feasibility study was completed, and the 2023 resource is 3,000 million tonnes at 1,340 ppm Li for 21.5 million tonnes of lithium carbonate equivalent (Indicated and Inferred).

Phase 1 drilling

Phase 1 comprises up to 100 drill sites as part of a staged 168-site program. Approvals were received for the Exploration Plan of Operations, approved by the Bureau of Land Management in December 2025, and drilling began after fire restrictions eased. RC drilling collects hydrogeological data, while diamond drilling provides core for geotechnical and metallurgical work. The 2026 program targets about one third of the approved sites, with completion by the end of November and first results in early Q1 2027.

Purpose of the program

The program aims to improve geological, hydrogeological and geotechnical datasets, supports a potential upgrade in classification of parts of the resource and provides inputs to the Feasibility Study, including monitoring wells for the hydrogeological model. Jindalee is taking additional fire-safety precautions.

The McDermitt resource and context

The 2023 resource estimate at the cut-off of 1,000 ppm lithium comprises 1,470 million tonnes at 1,420 ppm Li (11.1 million tonnes LCE) in the Indicated category and 1,540 million tonnes at 1,270 ppm Li (10.4 million tonnes LCE) in the Inferred category, totalling 3,000 million tonnes at 1,340 ppm Li for 21.5 million tonnes LCE.

The company completed a pre-feasibility study in 2024 and described it as confirming scale, long life and low-cost production potential, with engagement from US government agencies including the Department of Energy.

Permitting and approvals

On 15 September 2026, Jindalee advised that all major approvals had been received for Phase 1 drilling under the Exploration Plan of Operations, which the Bureau of Land Management approved in December 2025, and that mobilisation was underway following the easing of fire restrictions. Initial high-priority infill drilling is being carried out in the central part of the deposit with RC and diamond rigs operating on site.

The Phase 1 program is part of a staged 168-site program, and the 2026 portion targets about one-third of the approved sites.

Sector backdrop

US lithium developers depend on federal permitting and local data collection, and clay-hosted lithium requires metallurgical proof at scale.

McDermitt straddles the Oregon and Nevada border and hosts lithium in volcanic clays, a style of deposit that differs from hard-rock spodumene and brine projects. Clay projects need testing of processing routes and water supply, which is why hydrogeological and geotechnical data are collected.

US critical mineral policy has supported domestic lithium projects through permitting and funding programs, though project outcomes depend on technical and economic results.

Risks shareholders should weigh

Only about a third of Phase 1 sites will be drilled in 2026, and results are not due until early 2027. A resource upgrade is not assured.

Fire restrictions and weather can disrupt drilling, and a feasibility study and funding are still to come.

Lithium prices and US policy affect project economics.

The program’s completion by the end of November depends on weather and fire restrictions, and results will not be available until the first quarter of 2027.

A Mineral Resource classification upgrade is a stated aim but is not assured.

What’s next

Drilling is due to complete by the end of November 2026, with first results early in Q1 2027. Shareholders may wish to watch for those results and feasibility progress.

Drilling is expected to finish by the end of November 2026, and the feasibility study will use the new hydrogeological, geotechnical and metallurgical data.

FAQs

Q: What began on 2 October 2026?

A:Phase 1 infill and environmental drilling at McDermitt.

Q: When are results expected?

A:Early Q1 2027.

Q: How large is the resource?

A:3,000 million tonnes at 1,340 ppm Li, or 21.5 million tonnes LCE.

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