GTR to drill US uranium projects this quarter

ASX:GTR

Published 03-JUL-2024 11:37 A.M.

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Announcement

Trust Centre

Our US uranium Investment GTI Energy (ASX: GTR) just laid out its upcoming drilling program.

Here are our key takeaways from today’s announcement:

GTR expects to start drilling in late July or early August.
GTR will be drilling its Lo Herma project - the target here is to increase GTR’s existing 5.71 Mlbs uranium JORC resource. Lo Herma has an exploration target up to ~10.8 Mlbs so we are hoping GTR can get closer to that number.
Lo herma is just one of GTR’s three projects in Wyoming - GTR has two other projects in Wyoming, one of which also has a JORC resource estimate. Across its three Wyoming projects GTR has JORC uranium resources of ~7.37 million lbs.

How does today’s news impact our GTR Investment Memo?

What we want to see GTR deliver:

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

Today’s news directly relates to objective #1 of our GTR Investment Memo.

After today’s news GTR has defined its drill targets, the next step will be to kick off the drill program in late July/early August.

What are the risks?

Exploration Risk
GTR is still drilling exploration targets to grow its in-ground uranium resource. This may or may not return any uranium mineralisation. Exploration drilling that does not lead to economic uranium resources may occur.

With the upcoming drill program looking to extend GTR’s existing resource, there is always a chance drilling will not find uranium.

In that case, GTR would have spent capital for no increase in its JORC resource.