GTI Energy (ASX: GTR) is on track to deliver updates to both its resource and exploration target at its Lo Herma project in Wyoming’s Powder River Basin before the end of this year. Pic: Getty Images
Mining
Special Report: US nuclear energy capacity could triple by 2050 under a roadmap released by the outgoing Biden administration, and GTI Energy’s Lo Herma uranium project in Wyoming is well positioned to benefit.
Earlier this week, the White House unveiled plans to add 35 gigawatts of nuclear energy capacity by 2035, requiring an additional 17 Mlbs of uranium on top of the current annual 50 Mlbs required to fuel the existing reactor fleet.
The plan then adds further capacity to hit 200GW of new capacity by 2050, at least three times as much as the US had in 2020. All this at a time when the US produces less than 5% of its current annua uranium requirements and global mine supply if falling short of demand by around 40-50 Mlbs.
US nuclear growth plans are aimed at firming intermittent renewables and providing clean baseload power to sectors that need high-quality, consistent power such as “advanced manufacturing, semiconductor fabrication, and data centres that power the internet and advancements in artificial intelligence”.
While the report covered traditional gigawatt scale large nuclear plants, microreactors, and small modular reactors (SMRs), it singled out SMRs as being attractive due to their smaller up-front capital cost and potential for faster construction. Whatever happens, new builds are likely to occur at some of the 40 existing permitted sites next to the existing power plants.
The only spanner in the works for this ambitious roadmap is whether President-elect Donald Trump will adhere to it.
While Trump was decidedly pro-nuclear during his first term and he, along with Elon Musk, continues to express strong support, he recently expressed concerns about large-scale builds, saying that in the past they had been “too complex and too expensive” with construction of “one off” designed plants being slowed down by regulation.
However, he has said that he supports nuclear energy production and investment in SMRs and speeding up regulation seems to be one thing his new administration aims to targeting across the board for new energy projects.
Likewise, nuclear energy utilities appear confident that a production tax credit benefitting many existing generators will be excluded from Trump’s vow to repeal the Inflation Reduction Act tax credits for electric vehicles, offshore wind and other cleantech sectors due to bipartisan support.
Regardless of the details, nuclear energy production and the nuclear fuel supply chain including uranium mining in the US does seem likely to see a boost in the coming years, which will benefit US domestic uranium players such as GTI Energy (ASX:GTR).
The company said it remains on track to update the resource estimate and exploration target for its Lo Herma project in Wyoming’s Powder River Basin before the end of 2024.
Lo Herma currently has an inferred resource of 5.7Mlb U3O8 at an average grade of 630 parts per million and the exploration target of 5-10Mlbs U3O8 with a grade range 570-670ppm.
GTI has also completed the first phase of its staking program to secure additional ground along trend at Lo Herma.
This is expected to increase the project footprint by around 440 acres (180 hectares) to the north and south of Section 4, extending the mineralised trends at Lo Herma by ~1.6km.
It also expects to finalise its 2024 drill program during December with the completion of three hydrogeologic and water-monitoring wells.
Core for drilling has been prepared for chemical assay at the laboratory and metallurgical testing.
The updated resource along with hydrogeology data and metallurgical testing results is expected to feed into a potential scoping study for the first half of 2025.
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.
