GTI Energy (ASX:GTR) - GTI Energy (ASX:GTR) - Lo Herma Uranium Project Completes All Fieldwork - Feasibility Study Imminent

Mar 5, 2025

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Interview with Bruce Lane, Executive Director, GTI Energy

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-boosts-wyoming-uranium-resource-by-50-advances-development-plans-6420

Recording date: 3rd of March, 2025

GTI Energy is making significant progress on its uranium in-situ recovery (ISR) projects in Wyoming, with a focus on the Lo Herma project that recently reached 8.57 million pounds of uranium resources, 30% in the indicated category. This resource size strategically positions the company alongside similar economic projects in the region being developed by established players like UR Energy and enCore.

Executive Director Bruce Lane reports that the company has completed all fieldwork for their feasibility study, including successful metallurgical testing showing good uranium recoveries using alkaline leach processes and permeability testing confirming the project's suitability for ISR methods. The study, conducted by BRS Engineering from Riverton, Wyoming, is expected to be delivered within the next 1-2 months.

The economics appear promising, with anticipated capital expenditure of approximately $50-55 million and potential production of around 1 million pounds of uranium annually over an 8-10 year mine life. At uranium prices around $80 per pound, Lane suggests the project could generate $30-40 per pound in free cash flow, offering relatively quick payback and manageable risk.

GTI is exploring multiple strategic pathways forward, including growing their resource base and pushing toward permitting, developing satellite deposits, pursuing joint ventures, or potential partnerships with industry players. Lane emphasized their focus on proving the economic case by confirming the geology, metallurgy, and permeability to demonstrate the project's viability as a standalone operation.

The current uranium market presents challenges, with spot prices having declined significantly since early last year. However, Lane expressed confidence in eventual improvement, citing fundamental supply-demand dynamics, particularly as the United States aims to achieve self-sufficiency in uranium production, targeting 50 million pounds annually.

Given current market conditions, GTI is considering alternative financing approaches beyond traditional equity-debt structures, potentially involving strategic investment from industry participants. Lane also noted the possibility of industry consolidation in the exploration and pre-development space over the next 3-12 months.

While they won't be filing development permits this year, Lane indicated it would be feasible to reach that stage within the next 18-24 months if properly funded. As the U.S. works to secure domestic uranium supply, GTI Energy's Wyoming projects represent one piece of what Lane describes as a "game of inches" approach to rebuilding American uranium production capacity.

Learn more: https://www.cruxinvestor.com/companies/gti-energy