GTI Energy Ltd (ASX:GTR, OTC:GTRIF) Ltd earlier this week confirmed it is preparing to begin drilling at the Lo Herma ISR Uranium Project in Wyoming’s Southern Powder River Basin, following the completion of a positive scoping study. Managing Director Bruce Lane spoke with Proactive's Fouad Haidar.
Highlights
- GTI Energy is finalising updates to its existing drill permit for the Lo Herma ISR Uranium Project in Wyoming.
- The upcoming drill campaign aims to upgrade inferred resources to indicated and expand the overall resource base.
- GTI Energy targets reaching at least 10 million pounds of uranium, with over 50% in the indicated category.
- A recent scoping study reinforced project economics, giving the company confidence to proceed with further investment. Bruce Lane said the study outcome was strong, though publication of the study was constrained by inferred resources and is yet to be published on the ASX.
- Lane highlighted growing US uranium demand, driven by plans to construct 10 new reactors by 2030.
- He emphasised the initial fuel load requirements and noted the US currently produces only a fraction of its uranium demand.
- GTI expects the uranium price to respond to increasing US and global demand.
Baseline economics validated
Lane said the study validated the project’s baseline economics and supported further investment. GTI Energy told investors that while it could not yet publish full production and financial targets due to the presence of inferred resources, the upcoming drilling program was designed to address that.
The MD also said the company aims to upgrade a portion of the current inferred resources to the indicated category and grow the project’s overall resource base. Lane said the company is targeting “at least 10.00 million pounds” in total resources, with more than 50% indicated. At present, the indicated portion stands at approximately 30%.
Lane explained that GTI Energy is finalising the permit amendment process ahead of drilling during the upcoming US summer season. He said the company would also collect additional water and metallurgical data to support development planning.
Rising uranium demand
The US government’s stated plans to build 10 new nuclear reactors by 2030 could play into GTI's hands. Lane noted that each new reactor requires approximately “1.50 million pounds” of uranium in its first year of operation. This development could significantly raise domestic uranium demand in the US, where current production is less than “1.00 million pounds” annually.
GTI is closely monitoring the uranium price: “We think it’s the final shoe to drop on the demand story for uranium in the US,” Lane said.