GTR days away from drilling its US uranium project

Published 22-JUL-2024 12:30 P.M.

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Our US uranium Investment GTI Energy (ASX: GTR) is now days away from kicking off a drill program at its project in Wyoming.

In today’s announcement GTR confirmed the rig was on its way to site and that drilling should start within the next 48 hours.

GTR’s plan is to drill ~76 holes (~17,000M of drilling) do some metallurgical testing and then eventually upgrade the JORC resource for its Lo Herma project.

Once the resource upgrades complete, GTR’s plan is to move the project into scoping studies.

GTR already has a 7.37M lb uranium JORC resource across three projects in Wyoming.

The drill program this year is focused on its Lo Herma project where most of the company’s resources sit.

The focus for this drill program is on extending Lo Herma’s resource.

The image from today’s announcement shows where GTR will be focusing most of its drilling - (the yellow sections are the existing JORC resource and the red circles are where GTR is going to drill):

GTR to launch a rights issue soon:

We also noticed in today’s announcement that GTR is planning a rights issue and expects to put out an announcement regarding this “imminently”.

GTR recently raised $2.25M via a placement at 0.45c per share and its nice to the company planning a rights issue which is open to all existing shareholders.

Typically, companies shy away from rights issues or entitlement offers because it can take a lot longer to raise funds vs doing a placement.

But as existing shareholders we always like to see our portfolio companies offer existing holders a chance to participate in capital raises.

Next we want to see GTR lay out the terms and timetable for the rights issue.

How today’s news relates to our GTR Investment Memo:

Objective #1: Drilling at first Wyoming Project - Lo Herma
We want to see GTR define drill targets and then drill its most advanced Lo Herma uranium project in Wyoming. We want GTR to upgrade its existing 5.71m lb JORC resource for the project.

Milestones
✅ Geophysics/Geochemical surveys
✅ Permitting/planning
✅ Define drill targets
🔄 Drilling started
🔲 Drilling results

Source: “What do we expect GTR to deliver” Section - GTR Investment Memo 4 Aug 2023

After today’s announcement GTR is ~48 hours away from kicking off the drill program at Lo Herma.

We expect to see drill results come in over the next few months from this program.