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American Uranium Limited (ASX:AMU) successfully raised A$2.64 million in the June quarter of 2026, advancing its flagship Lo Herma in-situ recovery (ISR) uranium project in Wyoming toward a planned Q3 Mineral Resource update and Q3/4 Scoping Study. The company reported promising early drilling outcomes from its resource expansion program, completing 50 drill holes post-quarter, with 21 intersecting mineralisation at or above the 0.02% grade cut-off. These achievements set the stage for the next development phase, including larger-scale pump testing scheduled for August or September 2026.
Key Points
- American Uranium Limited (ASX: AMU; OTCQB: AMUIF) is an ASX-listed uranium exploration and development firm specializing in ISR uranium projects in Wyoming.
- The company completed a A$2.64 million Placement of 22.0 million shares at A$0.12 each to institutional and sophisticated investors during the June quarter 2026.
- The Lo Herma resource drilling program comprised 50 holes totaling approximately 12,757 metres, with 21 holes intercepting mineralisation at or above the 0.02% eU3O8 cut-off and 13 holes surpassing the target Grade Thickness of 0.2.
- The March 2026 interim Mineral Resource Estimate for Lo Herma was 9.45 million pounds eU3O8, including 4.02 million pounds in the Indicated category, representing 43% Indicated classification.
- Pump test wells installed at Mine Unit 1 are scheduled for testing in August or September 2026, pending field conditions and contractor availability.
- During the quarter, the company secured about 1,040 acres of new uranium mineral rights and staked 29 federal lode mining claims covering roughly 490 acres.
A$2.64 Million Placement Fuels Drilling and Permitting at Lo Herma
In the June quarter 2026, American Uranium raised A$2.64 million through a placement of 22.0 million ordinary shares at A$0.12 each to institutional and sophisticated investors. The capital is allocated to advance drilling, permitting, and technical studies at the company’s Wyoming uranium projects, with remaining funds supporting general working capital. This funding underpinned the resource expansion drilling campaign at Lo Herma and associated hydrogeological studies.
Following the placement, AMU launched a pro-rata non-renounceable Entitlement Offer at the same price of A$0.12 per new share, including 1-for-2 free attaching options exercisable at A$0.16 and expiring on 30 June 2029. The offer closed on 15 July 2026, with valid applications for 836,450 shares and 418,193 options, raising gross proceeds of A$100,374. This secondary raise further strengthened the company’s cash position for ongoing development during a critical resource definition phase.
Robust Drilling Results at Mine Units 1 and 2 Boost Resource Confidence
During and immediately after the June quarter, American Uranium conducted an extensive resource drilling program at Lo Herma aimed at upgrading Inferred resources to Indicated within Mine Unit 1 (MU1) and expanding mineralisation south of Mine Unit 2 (MU2). The 121-hole program was designed to enhance resource confidence for future development studies by increasing resource conversion and growth. By tightening drill spacing in MU1 and extending mineralisation near MU2, the results will inform the upcoming Mineral Resource Estimate update and the planned Q3/4 2026 Scoping Study.
Of the 50 holes completed, including 18 reported on 26 May 2026, 21 intersected mineralisation at or above the 0.02% (200 ppm) eU3O8 cut-off. Notably, 13 holes exceeded the target Grade Thickness (GT) of 0.2, confirming economic potential. The strongest intercept previously reported was 5.8 metres averaging 0.056% eU3O8 with a GT of 1.06 in hole LH-26-026. The latest highlight was hole LH-MW-005, with 6.9 metres averaging 0.044% eU3O8 and a GT of 0.99. These results demonstrate consistent roll-front mineralisation across MU1 and MU2, with multiple stacked horizons contributing to strong GT values.
March 2026 Interim Resource Estimate Totals 9.45 Million Pounds eU3O8 with 43% Indicated
The June quarter drilling builds on the 31 March 2026 interim Mineral Resource Estimate at Lo Herma, which totaled 9.45 million pounds eU3O8, including 4.02 million pounds classified as Indicated (43%). This update followed a successful 66-hole drilling campaign, validating the project’s prospectivity and enabling the expanded drilling program.
Upgrading resources from Inferred to Indicated is a key milestone that underpins feasibility studies and project financing. The June quarter drilling aimed to increase the Indicated portion of the resource, enhancing Lo Herma’s technical and financial profile ahead of the Scoping Study. Updated resource figures from the 50-hole program will be incorporated in the Q3 2026 Mineral Resource Estimate update.
Pump Testing at Mine Unit 1 Advances Hydrogeological Understanding
An important objective of the June quarter drilling was installing monitoring wells at Mine Unit 1 to support hydrogeological studies. This enables larger-scale pump testing, including observation wells within production sands and adjacent geological units, critical for characterizing aquifer flow, containment, and operational parameters essential for ISR uranium extraction.
Post-quarter, test wells installation was completed, with pump testing planned for August or September 2026, subject to field and contractor conditions. Results will provide vital data on aquifer transmissivity, storativity, and containment, informing technical and economic assumptions for the Lo Herma Scoping Study. Pump testing is a standard requirement for ISR project development, validating production and injection well performance models. The completion of well installation marks a critical milestone supporting Lo Herma’s progression.
Land Consolidation and Mineral Rights Expansion Bolster Project Base
During the quarter, American Uranium acquired approximately 1,040 acres of new uranium mineral rights and staked 29 federal lode mining claims covering about 490 acres along mineralised trends. This land consolidation around priority mine areas is a strategic move to expand and secure the company’s position within the prospective Lo Herma district, supporting resource growth and flexible mine planning.
Securing additional mineral rights serves to protect exploration upside, reduce third-party staking risks near existing resources, and demonstrate a committed land position to financiers and partners. This comprehensive approach to land and resource development helps de-risk Lo Herma ahead of the Scoping Study and future phases.
Clear Development Pathway to Q3 Resource Update and Q3/4 Scoping Study
American Uranium has outlined a near-term development plan targeting a Q3 2026 Mineral Resource Estimate update and a Q3/4 2026 Scoping Study. The June quarter activities and subsequent milestones are structured to deliver the necessary technical data. The 50-hole drilling program supports resource conversion and extension for the updated MRE, while pump testing provides hydrogeological data critical for ISR system design and economic modelling in the Scoping Study. This phased approach ensures each workstream informs the next development stage.
The Scoping Study will provide a foundational feasibility assessment detailing production capacity, capital and operating costs, and economic returns. It serves as the key reference for evaluating project viability and engaging potential partners, suppliers, and regulators. The targeted Q3/4 timeline reflects confidence in field progress and a commitment to advancing Lo Herma along a credible development trajectory.
Focus on In-Situ Recovery Uranium Operations in Wyoming
American Uranium concentrates exclusively on ISR uranium projects in Wyoming, a method that injects leach solutions into mineralised aquifers to dissolve uranium for recovery. This approach offers advantages such as a smaller surface footprint, lower capital expenditure, and reduced waste compared to traditional mining. Lo Herma’s roll-front uranium deposits hosted in shallow aquifers are well-suited for ISR extraction.
Hydrogeological and pump testing at Lo Herma aim to validate ISR applicability for this geological setting. Wyoming’s established ISR uranium industry provides regulatory familiarity and operational precedent, reducing permitting risk relative to less-developed jurisdictions. The company’s focus on Wyoming ISR projects leverages both geological potential and jurisdictional benefits.
Strong Grade Thickness Results Support Economic Viability
The Grade Thickness (GT) metric, calculated by multiplying uranium grade by mineralised interval thickness, is a key indicator for ISR economic viability. The Lo Herma target GT is 0.2, with 13 of 50 holes in the June quarter exceeding this threshold. Notable intercepts include hole LH-26-042 (GT 0.32), LH-26-061 (GT 0.66), and LH-MW-005 (GT 1.04), demonstrating substantial mineralisation above project targets.
The presence of multiple stacked mineralised horizons contributes to robust GT values, indicating several uranium-bearing intervals within the Mine Units. This geological feature can enhance production capacity and extend mine life, improving project economics. Consistent GT achievements across the drilling program support interpreted mineralisation continuity.
Drilling Program Supports ISR Infrastructure and Well Field Design
The June quarter drilling at Lo Herma served dual purposes: resource definition and ISR infrastructure development. Alongside resource conversion, monitoring and test wells were installed to facilitate hydrogeological studies and ISR system design. This integrated strategy maximizes the value of each drill hole by generating both resource data and physical assets for future phases.
The pump test wells at Mine Unit 1 will be used in the upcoming pump testing program to characterize aquifer parameters critical for ISR design, including transmissivity, storativity, and containment. These data will guide well array design, injection and recovery rates, and lixiviant flow modelling. This sequential integration of drilling, well installation, and testing reflects best practices in ISR uranium project management.
Market and Technical Risks Remain in Uranium Sector and ISR Implementation
Despite technical progress, American Uranium operates in the cyclical uranium market, subject to price volatility driven by global supply-demand, nuclear policies, and investor sentiment. Prolonged uranium price declines could affect financing and project economics. Additionally, ISR technology implementation at Lo Herma depends on successful pump testing and subsequent operations; unforeseen hydrogeological responses could require operational adjustments or delay commercialization.
Regulatory risks persist, as Lo Herma requires approvals from Wyoming state and possibly federal agencies. While Wyoming’s ISR permitting framework is mature, project-specific approvals may face delays or challenges. The company’s ability to complete the Scoping Study and advance development hinges on sustained capital, positive drilling outcomes, and favorable pump testing results. Investors should consider these technical and market risks when assessing American Uranium.
