Drilling data acquired to accelerate uranium resource

Our U.S. uranium Investment GTI Energy (ASX: GTR) announced it has acquired a material historical data package for its newly acquired Lo Herma uranium project in Wyoming, greatly accelerating the time to a JORC resource booking.

GTR is paying just US$950,000 to acquire the data package of historical drill logs, which has an estimated replacement value of ~$15M.

That means if GTR were to instead replicate the historical drilling it would cost an estimated 15 times more, as well as taking significant time to conduct multiple drilling campaigns over multiple seasons to replicate this data set.

With this data set in hand, GTR anticipates it will have enough historical data to report an inferred mineral resource for the project by the end June this year — without needing to conduct any further drilling. An inferred resource would set GTI up for verification drilling during the Wyoming summer.

The data package, which demonstrates sandstone hosted uranium mineralisation with economic potential, includes drill logs for 1,445 drill holes (for ~530,000 ft or ~160,000 m of drilling).

This is a significant amount of data and represents 7 times as many drill holes and 5 times the footage already drilled by GTR in Wyoming to date.

Alongside the data acquisition, GTR is conducting a capital raise to fund development and exploration at the project.

• GTR is raising $2.34M via a placement at 0.9c per share.
• For every two shares subscribed for investors also get a listed GTR option (GTRO), exercisable at 3c per share and expiring on 20 October 2024.
• GTR is also planning a rights issue which will give existing shareholders the chance to participate in the company’s capital raise. We intend to take up our full rights.

In light of today's announcement, we have added another objective to our GTR Investment Memo:

Objective #3 [NEW]: Maiden resource estimate at newly acquired (Lo Herma) project.

• We want to see GTR utilise its newly acquired US$15M drilling data and convert it into a maiden resource estimate.

This comes at a time where the US government is looking to shore up its nuclear fuel supply chain:

We also note that this development at the Lo Herma project comes in addition to the resource definition work underway at GTR’s Great Divide Basin project, which is on track for a maiden resource report by the end of Q1.