Jindalee continues to hold a strong and diverse portfolio of projects with potential for gold, nickel, uranium, magnesite and iron ore, with several of these projects being explored by third parties at no cost to the Company. Jindalee also provides shareholders with indirect exposure to a range of commodities through our investee companies, including uranium (through Energy Metals), gold and copper (through Alchemy Resources) and nickel and gold (through GME Resources). Further information on some of our projects can be found on this website.
Jindalee retains significant cash and share investments (worth approximately $5.7 million at the end of March 2017), placing the Company in a strong position to assess new opportunities to create wealth for our shareholders, and this is our primary focus going forward. Our relatively tight capital structure (only 34.9M shares on issue) continues to provide shareholders with great leverage as the Company’s initiatives progress.
Jindalee is targeting the extensions of mineralised trends where previous exploration has been minimal or ineffective due to transported cover. We believe these areas represent the “last frontier” for the discovery of large gold deposits in Australia. Jindalee is currently rebuilding its portfolio of gold projects with recent applications in the Eastern Goldfields, Chalice and Mt Fisher. Jindalee also retains direct interests in the Cardinia project where the Company holds an 11% interest in a group of 4 tenements that form a small part of Kin Mining’s extensive regional holdings, as well as indirect interests in gold through its 5% shareholding in Alchemy Resources Limited (ASX: ALY).
Jindalee, has applied for an Exploration Licence (Jane Well) located in the Gascoyne region of Western Australia and along the same trend as Cauldron Energy’s Bennett Well deposit. Once granted, exploration will focus on evaluating the potential for similar styles of sediment-hosted mineralisation to that found at Bennett Well.
Jindalee also maintains indirect exposure to uranium through its investments in uranium-focused explorer, Energy Metals Limited (ASX: EME). Energy Metals controls nine projects (total area >4,000 sq km) located in the Ngalia Basin in the Northern Territory (NT) and in Western Australia (WA). Initial exploration has concentrated on the Bigrlyi Project in NT (53.3% owned by Energy Metals), where previous drilling returned relatively high grade intercepts with excellent metallurgical recoveries. At a cut-off grade of 250ppm U3O8, the published Bigrlyi resource estimate (Indicated and Inferred) totals 29.4M lbs of U3O8. The Ngalia Basin area also hosts a number of other uranium deposits for which resources have been published by Energy Metals and these additional deposits have the potential to further extend the life of any future mining operation at Bigrlyi.
Further information on Energy Metals’ uranium projects can be found in their announcements and on their website: www.energymetals.net
Jindalee’s granted Exploration Licence (EL5/2016) at Prospect Ridge covers the Arthur River and Lyons River magnesite deposits, located in north-west Tasmania.
A 2012 resource estimate completed by previous holder Beacon Hill Resources Plc estimated Inferred resources of 25Mt @ 42.4% MgO at a cut-off grade of 40% MgO. No resources were estimated for the Lyons River deposit where drilling by Rio Tinto in the 1990’s recorded encouraging intercepts including 200m @ 42.0% MgO.
In joint venture with GWR Group, Jindalee is growing its resource base on the Joyner’s Find Project, which has been incorporated into the Wiluna West Project, held by GWR. Indicated and inferred resources within the joint venture ground total 7.7Mt at 63% Fe.
Jindalee’s indirect holding in Alchemy Resources also exposes the Company to the potential upside should exploration by Alchemy’s joint venture partner, Independence Group (IGO) prove successful in locating significant base and precious metal mineralisation within Alchemy’s Bryah Basin JV project tenements. These tenements are located to the west and along strike from Sandfire Resources’ high grade copper-gold DeGrussa mine and initial exploration by the joint venture partners has yielded encouraging early results.
RARE EARTH MINERALS
Jindalee has applied for a single Exploration Licence ELA 80/5091 located south of Halls Creek in the eastern Kimberley region of Western Australia. The tenement application is one of four applications likely to be decided by ballot and covers the Cummins Range rare earth oxide (REO) deposit, previously explored by Kimberley Rare Earths Limited (KRE). In February 2012, KRE estimated Inferred Resources of 4.9Mt at 1.74% total REO’s for the Cummins Range deposit.