GTI Energy (ASX:GTR) targets development pathway for Lo Herma uranium project

GTI Energy (ASX:GTR) is moving steadily toward development at its flagship Lo Herma uranium project in Wyoming, guided by a recent Scoping Study that confirms the potential for a low cost, low capital in situ recovery (ISR) operation.

Executive Director Bruce Lane spoke with us about the study’s findings, the upcoming drill campaign, and how Lo Herma fits within GTI’s broader uranium portfolio.

The Scoping Study was conducted by Wyoming based engineering group BRS Engineering Inc and modelled two development scenarios for Lo Herma: an ISR wellfield with a central processing plant, and a satellite ISR operation.

Both scenarios were assessed at uranium price ranges between US$60 and US$90 per pound.

“The study demonstrated that the project has the potential to support a low capital intensity, low operating cost ISR operation,” Lane explained. “The preliminary economics are considered positive, and this provides a strong rationale for further resource definition work and advancement through the next stage of technical studies.”

While ASX Listing Rules restrict GTI from publishing financial forecasts based on a resource that remains largely in the Inferred category, the internal conclusions of the study have given the company confidence to move forward.

In particular, the mine plan draws heavily from Indicated resources in its early stages, supporting the company’s focus on fast tracking confidence upgrades through the next drill campaign.

The next phase of drilling is slated to begin in the second half of 2025 and aims to achieve two critical goals: grow the total mineral resource and increase the proportion classified as Indicated.

“The program includes infill drilling at the wellfield to improve resource confidence and step out drilling along northern trends to grow the resource base,” Lane said.

This drilling will be complemented by hydrogeologic work, including aquifer pump tests on previously installed water monitoring wells.

These tests will feed into future ISR wellfield planning and environmental modelling. Core samples will also be retrieved for metallurgical testing, helping to validate the economic assumptions underpinning ISR recovery.

Before this work can begin, GTI must lodge an amended permit with the Wyoming Department of Environmental Quality to reflect the expanded scope of the 2025 campaign.

Lane expressed confidence in the company’s regulatory standing.

“We anticipate a smooth permitting process due to our established record of compliance and ongoing engagement with state authorities.”

Lo Herma sits at the centre of GTI’s exploration focus and contains a JORC compliant mineral resource of 6.21 million tonnes at 630 ppm eU3O8, for 8.57 million pounds of contained uranium as at December 2024.

This represents a substantial base upon which GTI is building a development ready ISR asset. However, the company’s reach in Wyoming extends further.

“GTI also holds additional uranium projects in the Great Divide Basin and Green Mountain areas, both of which are drill permitted and highly prospective for ISR development,” Lane said.

In Utah, the company has exposure to conventional uranium and vanadium opportunities in the Henry Mountains region.

Combined, GTI’s Wyoming assets host a total mineral resource of 10.23 million pounds of U3O8, with exploration upside in both Lo Herma and the Great Divide Basin.

Despite the strong Scoping Study results, GTI remains unable to release production targets or financial metrics due to ASX requirements that such disclosures be predominantly based on Indicated or Measured resources.

The company’s current program is specifically designed to address this limitation.

“Once a sufficient additional proportion of the resource has been reclassified as Indicated or higher, and further technical studies are completed, we expect to be in a position to release production and financial forecasts in compliance with ASX disclosure requirements.”

Until then, the focus remains on building a high confidence resource through infill drilling, acquiring robust hydrogeological data, and progressing metallurgical test work.

The company views this as essential groundwork in positioning Lo Herma as a future ISR uranium producer.

With uranium markets showing renewed strength and ISR development pathways offering relatively low capital requirements, GTI Energy appears well placed to capitalise on its Wyoming assets.

As Lane noted, the Scoping Study is only the beginning of what the company hopes will be a defining chapter in its development journey.

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