More uranium mineralisation next to $1.8BN uranium major
Our US-based uranium Investment GTI Energy (ASX: GTR) just released some more drill results from its 2022 drilling program in Wyoming’s Great Divide Basin.
GTR has four drill rigs running for a planned ~30,480m drilling program (100,000 feet) where it is looking to establish either an achievable exploration target or a maiden JORC resource estimate.
Today, GTR confirmed that 18 of the last 22 drillholes at its Teebo and Odin prospects hit uranium mineralisation.
Of the 18 drillholes, four met the grade cut-off (GT) requirements for uranium mineralisation that is typically considered economical in this part of Wyoming, with an average of 0.47 GT - 2.35x the targeted cut-off.
Interestingly, GTR’s drill results are from the ground the company holds, adjacent to Uranium Energy Corp’s (capped at $1.82BN) Antelope Project.
To see why we think GTR’s regional neighbours are of importance for our Investment Thesis, check out our most recent note here: GTR’s regional neighbour buying up USA uranium projects.
After today’s results, GTR has increased the strike length (mineralised roll fronts) of its uranium mineralisation to ~7.9km - strong progress considering GTR only had ~5km of strike before starting its 2022 drilling program.
We hope that the progress made with drilling translates into a maiden JORC resource for the company - we see a maiden JORC resource as the primary catalyst that would bring GTR onto the watchlists of the major uranium players in Wyoming, like Uranium Energy Corp.
With the ultimate aim of the drilling program being either an exploration target or a maiden JORC resource, we set up our expectations around potential outcomes for GTR as follows:
