GTI Energy positive scoping study triggers Wyoming drilling to ride uranium bull run

• Company’s confidence bolstered by positive ISR scoping study, US nuclear sector resurgence and improved uranium pricing
• GTI plans to upgrade and grow resource at Lo Herma ISR uranium project in Wyoming USA

Special Report: GTI Energy says a recent scoping study has highlighted the potential to upgrade and expand the resource at the Lo Herma uranium project in Wyoming, USA.

The GTI Energy (ASX:GTR) study focused on evaluating an alkaline in situ recovery (ISR) mine (wellfield) and central processing plant (CPP) at Lo Herma whilst also evaluating an alternative satellite mining operation.

It also identified suitable wellfield layouts, a processing flowsheet and a CPP site with estimated capital and operating costs to support a financially attractive and sustainable ISR operation with expansion potential.

It’s well timed, coming as the U₃O₈ spot price rallied last month over 10% to US$71.25/lb.

Watch: How executive orders effect US uranium

Term prices based on the contracts between utilities and miners under which most yellowcake is actually solid having spent months in and around the US$80/lb mark.

That’s good for uranium stocks, with some analysts seeing the signs of a returning bull market, supercharged by executive orders from US President Donald Trump to incentivise new uranium developments in the States like Lo Herma.

GTI says the results of its scoping work at the current term contract uranium price justify committing to the next phase of exploration and development, with fieldwork to focus on upgrading and expanding resources whilst collecting additional core sample and hydrogeological data.

Drilling is planned for the second half of the year.

Potentially very attractive economics

The wellfield and CPP designs, mining schedules and financial models were completed based on various uranium prices from US$60 through to US$90 per pound of saleable U₃O₈.

GTI believes the project has potential to deliver low CAPEX and OPEX, a short payback period with a low breakeven uranium price and attractive NPV and IRR returns.

The next phase of exploration at the project will focus on increasing the total mineral resource and upgrading the confidence level classification of the current inferred mineral resources. The study resources already includes 32% in the Indicated category and the Company is confident it can materially increase this proportion.

“Whilst the study did not meet the resource confidence level to allow us to publish the production targets and financial outcomes we are nevertheless very encouraged by the results, and we are confident that further drilling will deliver the necessary resource upgrades,” GTI CEO and executive director Bruce Lane said.

“GTI is in the final stages of planning further fieldwork to both upgrade and extend the project’s resources.

“The study has established positive baseline economics for the project, underpinning the investment case for further work to improve resource confidence levels and grow the project; especially in the context of a rapidly strengthening US nuclear power sector and tightening uranium supply.”

This article was developed in collaboration with GTI Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.