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Highlights
- GTI Energy Ltd will start its final drilling phase at the Lo Herma Uranium Project later this month.
- The company plans to update its mineral resource estimate and explore economic potential by year-end.
- Nearby, Uranium Energy Corp (UEC) is acquiring Rio Tinto’s Wyoming assets, enhancing regional uranium development.
GTI Energy Ltd (ASX:GTR) is set to commence the final phase of its 2024 drilling campaign at the Lo Herma Uranium Project in Wyoming’s Powder River Basin later this month. This phase involves drilling and constructing three hydrogeologic and water monitoring wells. Upon completion, the ASX energy stock plans to update its mineral resource estimate (MRE) and exploration target for Lo Herma by year-end.
Following these developments, a decision will be made regarding a scoping study to evaluate the project's economic potential.
Advancements at Green Mountain Project
At the Great Divide Basin Projects, GTI's technical team finalized the maiden drill plan for the Green Mountain area in February, selecting 16 drill holes for permitting. This program is designed to validate historical Kerr McGee drill hole maps and assess approximately 12 miles (about 19 kilometers) of mineralized regions identified in an airborne geophysical survey conducted in late 2023.
The surveys and drilling permit approvals have been completed, and Wyoming’s Department of Environmental Quality (DEQ) along with the United States Bureau of Land Management (BLM) has established a reclamation bond amount. A final decision on the timing of drilling at Green Mountain is expected to be announced soon.
UEC Acquires Nearby Uranium Assets
In a significant development, Uranium Energy Corp (UEC), the largest uranium company in the U.S., is acquiring all of Rio Tinto's assets in Wyoming for US$175 million. This acquisition includes the Sweetwater uranium plant and several mining projects located in the Great Divide Basin, as well as at Green Mountain.
UEC’s president and CEO, Amir Adnani, stated that this acquisition builds on the company's earlier transformative purchase of Uranium One Americas in 2021, further expanding its holdings in Wyoming’s Great Divide Basin. UEC aims to establish its third hub-and-spoke production platform at the Sweetwater mill site, complementing its existing operations in Texas and the Powder River Basin. This move is expected to enhance UEC's resources by approximately 175 million pounds, with a substantial portion deemed suitable for in-situ recovery (ISR) mining.
Industry Outlook
Bruce Lane, director and CEO of GTI Energy, expressed enthusiasm about UEC’s acquisition, highlighting the potential for developing uranium resources in the Great Divide Basin and Green Mountain district similarly to existing operations in Texas and the Powder River Basin. He referenced the success of UR Energy’s producing Lost Creek ISR plant and Shirley Basin ISR satellite mine development as evidence of the viability of hub-and-spoke production strategies within the region.
As GTI Energy Ltd gears up for its drilling activities at the Lo Herma Uranium Project and progresses with plans at Green Mountain, the broader uranium landscape in Wyoming is evolving. The acquisition of Rio Tinto's assets by UEC may further enhance the potential for significant development in the region, benefiting companies like GTI Energy as they continue to explore and assess their uranium projects.
