Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF, FRA:JF80)  has secured the remaining state-level permit needed for the first phase of a major drilling program at its 100%-owned McDermitt Lithium Project in Oregon, clearing the way for drilling to begin in September 2026, subject to wildfire conditions easing.

The company's US subsidiary HiTech Minerals Inc has received approval from the Oregon Department of Geology and Mineral Industries (DOGAMI), meaning all major approvals required for Phase 1 of the program are now in place.

Forged Drilling Corp has been contracted to carry out the work, although mobilisation remains dependent on the issue of a fire waiver amid elevated wildfire risk in Oregon.

Up to 100 drill sites in first phase

The broader Exploration Plan of Operations (EPO), approved by the US Bureau of Land Management in December 2025, allows for a staged program of up to 168 drill sites at McDermitt, with Phase 1 covering up to 100 sites.

Phase 1 will focus on high-priority reverse circulation and core infill drilling in the central portion of the deposit within the mine design outlined in the project's pre-feasibility study.

The program is designed to increase confidence in the project's existing indicated and inferred mineral resources, provide fresh samples for geotechnical studies and metallurgical testwork and collect environmental information, including hydrogeological data.

Jindalee said site preparation was expected to begin ahead of drilling, while risk-management measures include having water trucks available for drilling, dust suppression and emergency fire control.

Managing director and CEO Ian Rodger said the drilling would provide data required for the ongoing McDermitt feasibility study.

"This work will provide critical data for the McDermitt Feasibility Study, including upgrading confidence levels of the mineral resources at McDermitt, providing samples for metallurgical testwork designed to improve processing efficiencies and acquiring the environmental and geotechnical data essential to Project planning," Rodger said.

McDermitt Lithium Project

McDermitt is a large lithium resource in the US and is wholly owned by Jindalee, which also retains unencumbered offtake rights.

The project's 2023 mineral resource estimate stands at 3,000 million tonnes grading 1,340 parts per million lithium at a 1,000 ppm cut-off, containing an estimated 21.5 million tonnes of lithium carbonate equivalent.

Of this, 1,470 million tonnes at 1,420 ppm lithium is classified as indicated and 1,540 million tonnes at 1,270 ppm lithium as inferred.