GTI Energy Ltd has delivered a scoping study confirming the strong economic potential of its wholly owned Lo Herma Uranium Project in Wyoming’s Southern Powder River Basin.
“We are very pleased to present the results of the Lo Herma Project Scoping Study,” GTI executive director and CEO Bruce Lane said.
Potential to grow
“The project’s ‘base case’ contemplates a central processing facility with an estimated initial seven-year mine life with potential to increase the mine life and grow the project’s value through further drilling.
“The capital costs to establish an initial project, either with the preferred option of a central processing plant or as a satellite facility, are quite low due to expected simple metallurgy and Lo Herma’s favourable location near critical infrastructure, a locally based workforce (no FIFO or camp) and experienced mining services and business support centres.
“We believe that operating cost estimates are in line with similar nearby low cost ISR operations in the region.
“GTI recognises that the project would be analogous to nearby existing ISR uranium operations in Wyoming’s Southern Powder River basin, a globally recognised, experienced and supportive low-cost uranium mining jurisdiction.”
The numbers add up
Prepared by BRS Engineering Inc, the study models a seven-year operation using in-situ recovery (ISR) methods, targeting annual production of 800,000 pounds of triuranium octoxide (U₃O₈) for a total of 5.98 million pounds.
The project is underpinned by a JORC-compliant mineral resource of 8.57 million pounds U₃O₈, with 32% classified as indicated and the remainder inferred.
The preferred central processing plant (CPP) development scenario delivers a pre-tax net present value (NPV8) of US$110 million (~A$174 million) and an internal rate of return (IRR) of 52%.
A lower-cost satellite operation alternative improves the IRR to 66% and lifts the NPV8 to US$118 million.
Forecast cash operating costs are estimated at US$32 per pound U₃O₈, with all-in sustaining costs (AISC) of US$41 per pound.
Project payback is expected within 2.5 years of production, with a breakeven uranium price of around US$65 per pound.
GTI Energy points out the project’s favourable location near roads, power, workforce and existing ISR operations.
The company believes the Lo Herma deposit could be readily developed using conventional ISR technology, supported by hydrological and metallurgical testing to date.
Pre-production capital costs are estimated at US$43 million, with construction targeted to commence by 2028.
GTI is progressing exploration and permitting activities to refine the development case and considers funding strategies including equity, debt, joint ventures or asset sales.
Further drilling is on the horizon to improve resource confidence and test additional exploration targets.