GTI Energy (ASX:GTR) targets Lo Herma milestone amid rising uranium demand

GTI Energy (ASX:GTR) is on the cusp of a major milestone, with the company preparing to release its long awaited Lo Herma Scoping Study in the second quarter of 2025.

According to Executive Director Bruce Lane, all major technical work is now complete and the company is finalising the economic modelling and documentation required to support the study’s publication.

“The study is now in the final stages of preparation,” said Lane. “With wellfield planning and engineering studies concluded, we expect to deliver it within weeks.”

“It will provide greater visibility on development costs, potential returns, and the pathway to production essential for supporting broader investor and strategic engagement,” commented Lane.

What Sets Lo Herma Apart

Situated in Wyoming’s Powder River Basin, Lo Herma is a JORC-compliant ISR uranium project with a current resource of 8.57 million pounds, 32% of which is classified as Indicated.

The project also boasts an exploration target of up to an additional 11Mlbs, placing it among the more advanced assets held by juniors in the United States.

“Lo Herma is one of the few junior-held projects in Wyoming with a JORC-compliant ISR resource,” Lane explained. “Its location in a region with an established ISR mining history gives it advantages in terms of infrastructure and permitting.”

The company’s recent acquisition of the adjacent Pine Ridge project further enhances the project’s scale and strategic value.

“Few juniors are this advanced in the ISR uranium space,” Lane said. “Our proximity to other prospective assets strengthens our regional footprint.”

Valuation Gap with Peers

Despite its progress, GTI’s market capitalisation remains relatively modest at approximately A$9 million.

Lane believes the company is undervalued when compared to US uranium developers with similar-sized resources.

“At present, our Wyoming ISR resource is valued at less than US60 cents per pound on an implied basis,” he said. “By contrast, nearby transactions such as the Pine Ridge sale point to exploration target pounds being valued at around US59 cents.”

Lane noted that GTI’s asset quality and development readiness place it in good company alongside established ISR players.

“In terms of development stage, we compare favourably with companies like Ur-Energy and enCore Energy,” he stated. “Those groups are reactivating or expanding ISR operations in Wyoming, and GTI is positioned on a similar trajectory.”

“GTI’s location, JORC resource, and near-term Scoping Study place it in a compelling position relative to higher-valued North American counterparts,” Lane added.

Clear Milestones Ahead

Once the Scoping Study is released, GTI Energy intends to advance its development strategy on multiple fronts.

The immediate focus is an expansion drilling program in the second half of 2025, with the objective of growing the resource beyond the 10Mlb threshold.

“The drilling program will build on recent drilling, historical data and aerial geophysics,” Lane said. “It will target extensions to known mineralisation zones to support further resource growth.”

In parallel, the company is progressing its permitting and environmental studies to ensure it is positioned to move toward production as market conditions evolve.

“We’re laying the groundwork now to streamline future ISR production pathways,” Lane explained.

Aligning with Market Dynamics

Recent shifts in the uranium market are benefiting GTI, with the upcoming US ban on Russian imports and bipartisan plans to triple domestic nuclear capacity reshaping global supply chains and driving demand for locally sourced uranium.

“The market is being reshaped by geopolitics and energy policy,” said Lane. “The US ban, along with longer-term plans for increased nuclear output, strengthens the demand case for domestic ISR uranium sources like Lo Herma.”

This policy shift is already fuelling renewed interest in the sector, with Wyoming-based ISR producers preparing to ramp up or restart operations.

“Our timing is strategic,” Lane noted. “With US energy independence now a major policy goal, Lo Herma is well-positioned to contribute to a secure and sustainable uranium supply chain.”

“We’re seeing a rare convergence of policy, pricing, and production readiness. GTI is in the right place at the right time,” concluded Lane.

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