GTI Energy to Mobilize Drill Rig for Lo Herma Uranium Project Expansion
GTR (GTR) Share Update July 2024 Sunday 21st
GTI Energy Announces New Drilling Program at Lo Herma Uranium Project
GTI Energy Ltd (ASX: GTR) has announced the commencement of a significant drilling program at its Lo Herma ISR uranium project in Wyoming's Powder River Basin. The company has received all necessary permits and is set to mobilize a drill rig to the site within the next 48 hours.
Instant Summary:
- Permit approved for 57,000 ft (~17,000 m) of mud rotary drilling.
- Drill rig to mobilize and commence drilling within the next 48 hours.
- Targeting expansion and upgrade of the current Inferred Mineral Resource Estimate of 5.71 Mlbs U3O8 at an average 630ppm.
- Planned rights entitlement offer to all GTR shareholders and GTRO optionholders expected imminently.
Drilling Program Details
GTI Energy Ltd (GTI) has announced that it is set to begin a new phase of drilling at its Lo Herma ISR uranium project in Wyoming's Powder River Basin. The company has received approval for a drilling permit that allows for up to 57,000 ft (~17,000 m) of mud rotary drilling. This new drilling phase will target the expansion and upgrade of the current Inferred Mineral Resource Estimate, which stands at 5.71 million pounds of U3O8 at an average grade of 630ppm.
The drilling program will commence within the next 48 hours, with a drill rig being mobilized to the site. The program includes drilling at up to 76 locations and the construction of up to five groundwater monitoring wells. This effort aims to collect crucial data such as hydrogeologic parameters and rock core samples for metallurgical testing.
Resource Expansion and Upgrade
The primary goal of this drilling program is to expand the resource areas and upgrade the current mineral resource classification. The company plans to publish an updated mineral resource estimate and exploration target range following the completion of the 2024 drill program. This updated estimate is expected to support the near-term development of a Scoping Study to demonstrate the economic potential of the project.
Executive Commentary
Bruce Lane, Executive Director of GTI Energy, stated, 'We are very pleased to be starting resource expansion drilling at Lo Herma on time. We’re excited to be in a strong position to complete the drilling program this quarter, with a revised mineral resource estimate to be rapidly advanced post-drilling. This work prepares GTI for a potential Lo Herma scoping study, which we hope to commence later this year.'
The announcement of the new drilling program is likely to have a positive impact on GTI Energy's stock, as it signals a proactive approach to resource expansion and development. The potential for an upgraded mineral resource estimate could attract investor interest and boost stock prices. Additionally, the planned rights entitlement offer may provide existing shareholders with an opportunity to increase their holdings at a potentially favorable price.
Investor Reaction:
Analysts and investors have expressed optimism about the announcement. The commencement of the drilling program is seen as a positive step towards realizing the full potential of the Lo Herma project. Some investors are particularly interested in the upcoming rights entitlement offer, which could provide additional value.
Conclusion:
Investors should keep a close eye on the progress of the drilling program and the subsequent updates on the mineral resource estimate. The successful completion of this phase could significantly enhance the value of the Lo Herma project and provide a strong foundation for future development. GTI Energy's strategic initiatives and timely execution will be crucial in maintaining investor confidence and driving stock performance.