Lo Herma Expansion Drilling: Can American Uranium Deliver on Resource Growth?
American Uranium has received regulatory approval to commence a significant drilling campaign at its Lo Herma uranium project in Wyoming, aiming to boost its resource base amid a growing US nuclear revival.
- Wyoming Land Quality Division approves resource expansion drilling
- Phase one drilling to start in Q4 2025 targeting northern extensions
- Potential to increase current 8.57 million pounds uranium resource
- Drilling permit allows up to 121 holes and 37,500 metres of drilling
- Updated resource estimate and scoping study planned for 2026
Regulatory Green Light for Expansion
American Uranium Limited (ASX – AMU) has secured a crucial approval from Wyoming's Land Quality Division to proceed with a resource expansion and infill drilling program at its flagship Lo Herma uranium project. This regulatory milestone clears the way for the company to advance one of the few near-term in-situ recovery uranium projects in the United States, aligning with the broader resurgence of nuclear energy and uranium mining in the country.
Strategic Drilling Objectives
The initial phase of drilling, expected to commence in the fourth quarter of 2025, will focus on extending the known uranium mineralisation trends north of the planned mine units one and two. American Uranium aims to convert its exploration target, currently conceptual and ranging between 5.6 to 7.1 million tonnes at grades of 500 to 700 parts per million uranium oxide, into a formal mineral resource estimate. This could potentially increase the existing resource base of 8.57 million pounds of uranium oxide, of which 32% is indicated.
Following the expansion drilling, a second phase of infill drilling is planned to upgrade inferred resources to higher confidence categories, which is critical for advancing project feasibility and attracting investment.
Project Scale and Technical Oversight
The approved drilling permit authorizes up to 121 drill holes totaling approximately 37,500 metres. This extensive program underscores American Uranium’s commitment to thorough resource delineation and confidence building ahead of an updated Mineral Resource Estimate and a scoping study scheduled for 2026. The company’s technical disclosures have been reviewed and endorsed by Doug Beahm, a seasoned professional with over five decades of experience in uranium exploration and mining in the Western US, ensuring the scientific rigour of the project’s development.
Positioning Amid a Nuclear Revival
CEO Bruce Lane highlighted the significance of this drilling campaign as a pivotal step in capitalising on America’s nuclear energy revival. With increasing global focus on clean energy and uranium’s role as a critical fuel, expanding and upgrading the Lo Herma resource could position American Uranium as a key player in the US uranium supply chain. The forthcoming resource update and scoping study will be closely watched by investors eager to assess the project’s economic potential and strategic value.
Bottom Line?
As drilling gears up, all eyes will be on Lo Herma’s resource growth potential to fuel American Uranium’s next phase.
Questions in the middle?
- Will the drilling confirm the high-grade extensions north of the current mine units?
- How will updated resource estimates impact the project’s valuation and financing options?
- What are the timelines and expected outcomes for the upcoming scoping study in 2026?
