GTI Energy has reported a significant 50% increase in its Lo Herma uranium resource estimate to 8.57 million pounds eU3O8, alongside an expanded exploration target and a completed $1.6 million rights issue to advance project development.
- Lo Herma Mineral Resource Estimate increased 50% to 8.57Mlbs eU3O8
- Indicated resources now 32% of total with 2.78Mlbs classified
- Exploration Target Range expanded to 5.59–7.10 million tonnes at 500–700 ppm U3O8
- Scoping study underway targeting completion in first half of 2025
- $1.6 million rights issue completed to fund drilling and development
Resource Growth and Exploration Update
GTI Energy Ltd has delivered a robust update on its flagship Lo Herma uranium project in Wyoming's Powder River Basin, reporting a 50% increase in its Mineral Resource Estimate (MRE) to 8.57 million pounds of equivalent U3O8. This upgrade reflects the results of extensive drilling programs conducted in 2023 and 2024, which have not only expanded the resource footprint but also upgraded a significant portion of the resource to the Indicated category, now comprising 32% of the total resource.
The updated MRE is based on 6.21 million tonnes of mineralisation at an average grade of 630 ppm eU3O8, calculated with industry-standard cut-off grades appropriate for In-Situ Recovery (ISR) mining methods. The resource expansion includes the addition of a new area on the eastern end of the property, secured through recent staking, which contributed nearly 2 million pounds of uranium to the total resource.
Exploration Target and Project Potential
Alongside the resource upgrade, GTI has increased its Exploration Target Range (ETR) to between 5.59 and 7.10 million tonnes at grades ranging from 500 to 700 ppm U3O8. This reflects both the conversion of some exploration targets into the updated MRE and the addition of new claims extending mineralised trends by approximately 1.6 kilometres. The ETR remains conceptual, with further drilling planned to test these targets, particularly in the northern and deeper Fort Union formation sands.
The Lo Herma project benefits from its strategic location within a prolific uranium-producing region, surrounded by multiple permitted ISR operations and processing facilities. This proximity could facilitate future development and processing synergies.
Advancing Towards Development
GTI has initiated a scoping study with Wyoming-based BRS Engineering Inc., leveraging their extensive experience in ISR uranium projects. The study aims to assess the economic viability of the Lo Herma deposit and is expected to be completed in the first half of 2025. Concurrently, metallurgical testing of core samples is underway, with results anticipated shortly, which will provide critical data for process design and project optimisation.
Hydrogeological drilling has commenced to better understand water table conditions, a key factor for ISR mining feasibility. Additionally, GTI holds other promising projects in Wyoming's Great Divide Basin and Green Mountain areas, with drilling permits secured and exploration plans advancing.
Financial Position and Capital Raising
To support its exploration and development activities, GTI completed a partially underwritten rights issue raising $1.6 million during the quarter. The capital will fund ongoing drilling, the scoping study, and exploration at other projects. The company ended the quarter with approximately $1.25 million in cash and access to an additional $1.84 million in standby equity capital under an At-the-Market financing facility, providing a runway of around two quarters at current expenditure levels.
Operational expenditure remains focused on exploration and evaluation, with no substantive mining production activities reported during the period. Director remuneration payments were disclosed as part of corporate governance transparency.
Bottom Line?
GTI Energy’s expanded resource base and strengthened financial position set the stage for critical development milestones in 2025, but the path to commercial production hinges on upcoming scoping study outcomes and further exploration success.
Questions in the middle?
- Will metallurgical testing confirm the amenability of Lo Herma ore to ISR processing?
- How will hydrogeological data influence the feasibility and design of ISR mining at Lo Herma?
- What are the timelines and capital requirements for advancing from scoping study to feasibility and permitting?