Pending Wyoming Approval Poses Key Risk for American Uranium’s Lo Herma Expansion

Project Advancement at Lo Herma

American Uranium Limited (ASX, AMU) is moving forward with critical development activities at its flagship Lo Herma In-Situ Recovery (ISR) uranium project located in Wyoming’s Southern Powder River Basin. The company announced plans to initiate hydrogeologic testing alongside resource expansion and infill drilling during the fourth quarter of calendar year 2025. These efforts are designed to enhance the understanding and confidence in the project’s mineral resources, positioning Lo Herma as a key player in the U.S. nuclear supply chain resurgence.

Hydrogeologic Testing to Validate ISR Potential

Following the completion of four groundwater monitoring wells earlier this year, American Uranium will conduct step-drawdown pumping tests to assess sustainable extraction rates and aquifer properties. These tests are essential to confirm that the hydrogeologic conditions support efficient ISR mining methods, which rely on the natural flow of groundwater to recover uranium without traditional mining. Successful validation will also refine wellfield planning and underpin future mine permitting applications.

Resource Expansion Drilling and Regulatory Progress

The company has secured drilling permits from the U.S. Bureau of Land Management for up to 121 drill holes, totaling approximately 37,500 metres. While formal approval from Wyoming’s Land Quality Division is pending, the acceptance of the permit application and bond calculation signals imminent commencement. The drilling program aims to expand the resource base north of existing mineralised zones and upgrade inferred resources to higher confidence categories through infill drilling, thereby strengthening the project’s economic outlook.

Implications for Mineral Resource Estimates and Scoping Study

Data from the hydrogeologic testing and drilling campaigns will feed into an updated Mineral Resource Estimate (MRE) and a comprehensive Scoping Study scheduled for release in early 2026. The current indicated mineral resource stands at 8.57 million pounds of uranium oxide (eU3O8), with exploration targets suggesting potential for significant expansion. These updates will be closely watched by investors and industry observers as indicators of the project’s viability and contribution to America’s nuclear energy ambitions.

Strategic Positioning Amid U.S. Nuclear Revival

American Uranium’s Lo Herma project is among a select group of near-term, low-cost ISR uranium developments in the United States. As the country seeks to rebuild its domestic nuclear supply chain, projects like Lo Herma could play a pivotal role in securing reliable uranium sources. CEO Bruce Lane emphasised that the upcoming programs represent major steps toward delivering value from this nuclear revival, highlighting the strategic importance of advancing both resource confidence and hydrogeologic understanding.