American Uranium Limited confirms the start of phase one resource drilling at its Lo Herma uranium project in the U.S. this October, aiming to grow its mineral resource and support a 2026 scoping study update.
- Phase one resource drilling to begin week of 20 October 2025
- Focus on expanding mineral resource north of planned mine units
- Concurrent hydrogeological testing planned
- Current resource estimate at 8.57 million pounds uranium oxide
- Results to inform updated resource estimate and 2026 scoping study
Drilling Campaign Confirmed for Lo Herma
American Uranium Limited (ASX, AMU) has announced that phase one of its resource development drilling program at the Lo Herma uranium project in the United States is set to commence during the week of 20 October 2025. This marks a significant step forward for the company as it seeks to capitalize on the growing momentum behind America’s nuclear energy revival.
The initial drilling phase will focus on expanding the known mineral resource by targeting extensions to the north of the two planned mine units, MU1 and MU2. The company currently holds a mineral resource estimate of 8.57 million pounds of uranium oxide, with 32% classified as indicated resources. The exploration target, which remains conceptual, suggests potential for additional mineralisation ranging between 5.6 and 7.1 million tonnes at grades of 500 to 700 parts per million uranium oxide.
Strategic Objectives and Testing
Alongside the drilling, American Uranium plans to conduct hydrogeological testing concurrently, although specific details of this work are yet to be disclosed. The drilling permit allows for up to 121 drill holes and approximately 37,500 metres of drilling, underscoring the scale and ambition of the campaign.
The primary goal of this phase is to convert the exploration target into a more definitive mineral resource, which would then feed into an updated Mineral Resource Estimate and a revised scoping study scheduled for 2026. This updated study will be critical in positioning the Lo Herma project as a viable contributor to the U.S. uranium supply chain, which is increasingly important amid geopolitical and energy security considerations.
Market Context and Future Outlook
American Uranium’s CEO Bruce Lane highlighted the strategic importance of the drilling program, emphasizing the company’s intent to grow its resource base and increase confidence in the project’s economics. The Lo Herma project is one of the few near-term in-situ recovery uranium projects in the U.S., a method that is generally considered more environmentally friendly and cost-effective compared to traditional mining.
With the U.S. government’s renewed focus on nuclear energy as a clean power source, projects like Lo Herma are well positioned to benefit from supportive policies and rising uranium demand. However, the company cautions that the exploration target remains conceptual, and there is no guarantee that drilling will convert it into a defined mineral resource.
Investors and market watchers will be keenly observing the drilling progress and subsequent assay results, which will provide clearer insights into the project’s potential scale and grade. The outcomes will also influence the forthcoming scoping study, which could set the stage for further development and potential production decisions.
Bottom Line?
As drilling kicks off, American Uranium aims to turn potential into proven resources, setting the stage for a pivotal 2026 update.
Questions in the middle?
- Will phase one drilling successfully convert the exploration target into a defined mineral resource?
- What specific insights will the concurrent hydrogeological testing provide about project viability?
- How will evolving U.S. nuclear energy policies impact the economic outlook for Lo Herma?