GTI Energy Initiates Key Drilling Phase at Lo Herma Uranium Project
GTR (GTR) Share Update January 2025 Thursday 16th
GTI Energy Begins Drilling at Lo Herma Uranium Project
GTI Energy Ltd has announced the commencement of a significant drilling phase at its Lo Herma ISR Uranium Project in Wyoming, aimed at advancing the project's Scoping Study scheduled for completion in the first half of 2025.
Instant Summary:
- Drilling of groundwater monitoring wells has begun at Lo Herma.
- Aquifer testing to confirm ISR mining suitability is underway.
- Metallurgical testing results expected by February 2025.
- Lo Herma Scoping Study on track for completion by mid-2025.
- Uranium resource at Lo Herma increased by 50% to 8.57 million pounds.
Project Overview
GTI Energy Ltd has embarked on a crucial phase of its Lo Herma ISR Uranium Project, located in Wyoming's Powder River Basin. The current drilling initiative involves the development of three groundwater monitoring wells, which are essential for conducting aquifer tests to evaluate the feasibility of in-situ recovery (ISR) mining at the site. This phase is anticipated to conclude in the coming weeks, contingent on weather conditions.
Scoping Study Progress
The Lo Herma Scoping Study, conducted by Wyoming-based BRS Engineering Inc., is progressing as planned. The study is being prepared in accordance with the JORC code (2012) for ASX-listed companies. BRS Engineering brings extensive experience in ISR project development, enhancing the study's credibility and thoroughness.
Metallurgical Testing
In addition to aquifer testing, GTI Energy is conducting metallurgical tests on drill core samples from Lo Herma. These samples are being tested under alkaline leach conditions, a common practice in ISR mining operations in the region. The results, expected in February 2025, will provide critical data for the ongoing Scoping Study.
Resource Expansion
GTI Energy recently reported a significant increase in the uranium resource at Lo Herma, now estimated at 8.57 million pounds, marking a 50% uplift. This expansion is attributed to a comprehensive historical data package and recent drilling campaigns conducted in 2023 and 2024, which have helped refine the resource model and improve classification.
The initiation of drilling and the subsequent results will be pivotal in determining the viability of ISR mining at Lo Herma. A positive outcome could significantly enhance GTI Energy's stock value by confirming the project's potential. The increased uranium resource already positions the project favorably within the market, potentially attracting investor interest and strategic partnerships.
Investor Reaction:
Analysts are likely to view this development positively, given the strategic importance of uranium in the energy sector and the project's location in a historically productive region. The increase in resource estimates could bolster investor confidence, although market reactions will depend on forthcoming test results and the overall progress of the Scoping Study.
Conclusion:
Investors should keep a close watch on the results of the aquifer and metallurgical tests due in February 2025, as these will be crucial in shaping the future of the Lo Herma project. GTI Energy's strategic advancements in uranium exploration could offer substantial opportunities in the evolving energy landscape.