Next Investors logo grey

New data package to give GTR a head start in uranium exploration


Published 22-JUL-2020 11:04 A.M.


5 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Emerging uranium play, GTI Resources Ltd (ASX:GTR) has secured a significant data package, identified during its due diligence enquiries into the two mineral leases it is acquiring from TSX.V listed Anfield Energy Inc.

The data package also contains valuable information regarding the company’s Jeffrey, Rats Nest and Moki claim groups, as well as other ground of potential interest.

The data includes drill hole logs and maps, resource maps, assay reports and project level exploration and evaluation reports.

This comes on the back of GTR entering into a binding agreement to acquire 100% of two mineral leases from Anfield Energy in a significant expansion of its uranium prospects in Utah.

As illustrated below, this expanded GTR’s land position to more than 5.5 kilometres along the interpreted strike of the mineralised trend with significant exploration upside within untested areas under cover.

02 - GTR.PNG

The initial review of the recently acquired historical data package serves to further reinforce this interpretation and validates the company’s acquisition of the mineral leases from Anfield.

The acquired leases contain historical underground production workings and are prospective for uranium and vanadium as evidenced from recent sampling conducted during acquisition due diligence.

XRF sampling results are shown below.

02b - GTR - XRF

Uranium price surges with more upside anticipated

These developments come at an ideal time with the uranium price up some 25% in the last four months.

There are a number of drivers which should support further increases, most prominently the US government’s support for an accelerated long-term nuclear power program and sustained output from Kazakhstan, previously a major source of supply.

Further, the last few weeks have seen an increase in the prices of industrial metals such as iron ore, copper and nickel, suggesting a ramp-up in manufacturing in countries such as China is imminent.

A surge in the Shanghai Composite index points to an economic recovery in China and the broader region, and an uptick in manufacturing activity invariably creates demand for energy, some of which is supplied by uranium-fed nuclear power plants.

02a - GTR - U chart.PNG

Provides drill intercept maps and evaluation reports

Harking back to the acquired data, it will allow for accelerated evaluation of the currently held ground, assessment of adjacent ground and much greater refinement of drill targets.

Over the next month, GTR will rapidly review and field reference the acquired data to support the next phase of exploration activities within the projects of the Henry Mountains.

In addition to relevant data covering GTR’s projects in the northern part of the Henry Mountains, the data package also provides drill intercept maps and an evaluation report for the company’s Moki project located near Ticaboo, Utah.

This data is of particular interest as significant historical drilling took place on this property which is positioned immediately east of the Tony M Mine owned by Energy Fuels Inc.

The Tony M Mine was developed in the late 1970s with production as recently as 2008 by then mine owner Denison Mines.

The mine was subsequently purchased by Energy Fuels Inc. in 2012 as part of a larger transaction.

Approximately 1 million lbs of U3O8 was extracted from the Tony M mine by intermittent mining between 1979 and 2012.

The most recent resource estimate (June 2012, NI 43-101 report by Energy Fuels Inc.) for the Tony M Mine and adjoining mineral resources, reports a global resource (Indicated and Inferred) of over 20 million pounds.

The acquisition of this data for the Moki project will aid in understanding the local mineralisation, as well as determining if there is a trend relationship with the known ore-grade mineralisation at the Tony M Mine.

Commenting on these developments and highlighting the significance for the group’s targeted projects, executive director Bruce Lane said, “The historical data package gives GTR a head-start in planning the next phase of exploration in Utah.

‘’The company’s ground position has been enhanced significantly by securing the prospective ground between our Jeffrey and Rats Nest projects and the new data package will help us quickly improve our understanding of the potential of the expanded project area and the Moki project which sits next to the Tony M Mine.

‘’The new ground substantially increases the interpreted mineralised strike zone within GTR’s land package and improves the opportunity to define an economic resource in the area.

‘’The mineralised trend which was confirmed during our recent round of drilling at Jeffrey remains open in both directions and in particular to the south which runs into the new leases.

‘’The initial sampling conducted on the new leases shows prospectivity for commercial grade ores and the possibility that exploration and development could be relatively quick and inexpensive.”

Drill core assay results could drive share price higher

Shares in GTR increased nearly 800% between April and May, and while they have retraced to some extent shareholders who recognised the company’s potential at an early stage are reaping the rewards.

However, there could be further upside with drill core assay results imminent from drilling at the Jeffrey project in June.

The reconnaissance stage drill program at Jeffrey targeted known shallow mineralisation in a near-surface sandstone unit of the lower Salt Wash Member of the Morrison Formation in the northern portion of the mineralised trend.

The drilling also explored slightly deeper (circa 20 metres from surface) sandstone units within the fluvial depositional sequence which led to identification of uranium mineralisation of economic interest in a second, slightly deeper, sandstone unit.

This discovery substantially increases the potential of the Jeffrey project to host meaningful uranium and vanadium resources, similar to that historically produced.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.