GTI Energy green lit for Wyoming uranium resource upgrade drilling

GTI Energy has secured approval to start drilling its Lo Herma uranium project in Wyoming as the US looks to rebuild its domestic supply chain.

The Lo Herma project currently hosts an 8.57Mlb of U3O8 resource with 32% in the indicated category. Pic: Getty Images

• GTI Energy grabs BLM drilling approval for Lo Herma ISR uranium project in Wyoming

• Drilling will target resource expansion and confidence upgrade

• Company aiming for an updated mineral resource and scoping study near-term

 

Special Report: GTI Energy has secured approval from the Bureau of Land Management (BLM) for its 2025 drill program at the Lo Herma project in Wyoming, USA.

The company has now contracted top-tier Wyoming-based exploration drilling contractors Single Water Services and Hawkins Logging for what is gearing up to be a busy drilling season in the uranium sector across the state.

GTI Energy (ASX:GTR) says Lo Herma is one of the few near-term, low-cost in-situ recovery (ISR) uranium projects in the country, positioning the company to deliver value from America’s nuclear revival, with the project at the forefront of the domestic supply chain rebuild.

“With the uranium sector regaining strong institutional and government backing in the US, the Lo Herma Project is ideally positioned to help fill that critical supply gap,” executive director Bruce Lane said.

The plan for this drilling program is growing and upgrading the current 8.57Mlb of U3O8 resource which already has 32% in the indicated category. The update is expected in Q4 this year.

Watch: Drilling targets uranium upgrade after positive scoping study

Capitalising on the US uranium revival

Lo Herma is poised to capitalise on the US administration’s strong support for domestic uranium supply growth.

The company is planning a revised scoping study to reflect improved economics at the project with the U₃O₈ term contract price sitting at around US$80/lb and spot price rallying to over US$71.25/lb.

“Having now received BLM approval, and with the support from the government level, our final step is sign-off from the State of Wyoming for our drilling plan,” Lane said.

“This is expected to be completed in time for drilling to commence during September.

“This drilling is targeted to grow the resource by upgrading the current exploration target areas to the north of proposed mine units 1 and 2, in addition to increasing the proportion of indicated resources at the project with an aim to deliver an updated mineral resource estimate by end of calendar year 2025.

“The resource update will be followed by a revised scoping study to outline the project economics as we move towards a Final Investment Decision (FID) for mine construction.”

The project offers significant upside potential with an exploration target of an additional 6-11Mlbs in addition to the company’s other drill-permitted projects in Wyoming’s Great Divide Basin and Green Mountain area, as well as brownfield conventional uranium/vanadium assets in Utah’s Henry Mountains.

This article was developed in collaboration with GTI Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as GTI Energy green lit for Wyoming uranium resource upgrade drilling