American Uranium Advances Toward Q3 Scoping Study at Lo Herma Following Resource Update

• American Uranium reported 9.45 million pounds at 720 ppm average grade (up from 630 ppm) with 43% at indicated confidence level after completing 60 of 121 planned drill holes at the Lo Herma project in Wyoming's Powder River Basin.
• Company is funding drilling completion, hydrogeological testing, and metallurgical work to deliver a scoping study by end of Q3 2026, aiming to demonstrate economic viability comparable to nearby developing projects (Shirley Basin at 8.8M lbs, UEC's Ludeman at ~10M lbs).
• Completed $2.64M placement and launched rights issue to fund drilling program, aquifer testing, and initiate permitting process including water monitoring wells to meet 2029-30 production timeline.
• Secured ~1,000 acres of private mineral rights adjacent to existing resource areas, enabling previously excluded mineralisation to be included in resource modeling and providing drill-ready exploration targets.
• Project located among 6-7 permitted ISR facilities in established uranium basin with proven infrastructure, technical expertise, and regulatory support, targeting US supply gap of ~47-50 million pounds by decade's end.

As the United States faces a projected uranium supply shortfall of approximately 47-50 million pounds by the end of the decade, American Uranium (ASX:AMU) is advancing its flagship Lo Herma project in Wyoming's Powder River Basin toward a critical inflection point. With a scoping study planned for Q3 2026 and strategic positioning among established in-situ recovery (ISR) operations, the company is executing a disciplined development strategy aimed at demonstrating economic viability during a period of strengthening uranium fundamentals. CEO Bruce Lane recently outlined the company's progress following a resource update and discussed the path toward establishing Lo Herma as a near-term production candidate in one of North America's premier uranium jurisdictions.

Interim Resource Reaches 9.45 Million Pounds at Higher Grade

American Uranium completed an interim resource update at the end of March 2026, marking the midpoint of its 121-hole drilling program. The update increased the total resource to 9.45 million pounds, with 43% now at the indicated confidence level. Significantly, the average grade improved from 630 parts per million (ppm) to 720 ppm, reflecting more targeted drilling aimed at identifying optimal mineralisation zones.

"We completed the resource update at the end of March as we'd guided. And it was an interim update because we're only halfway through our drilling program." 

The company has completed just over 60 holes, with objectives split between growing the resource size and increasing confidence levels to support the upcoming scoping study. The drilling program focuses on defining the oxidation-reduction boundary within roll-front deposits - the critical interface where uranium mineralisation occurs with sufficient grade and thickness for economic extraction.

Currently, the company has identified three proposed mine units containing approximately 7 million pounds within those defined areas. The remaining drilling program aims to both extend known mineralisation and upgrade inferred resources to higher confidence categories required for JORC-compliant economic studies.

Strategic Land Position Expands Development Optionality

In parallel with the drilling program, American Uranium secured approximately 1,000 acres of private mineral rights adjacent to existing resource areas at mine units two and three. This acquisition addresses a previous constraint where resource modeling had to exclude mineralisation extending onto private lands. Lane noted the strategic importance: 

"By being able to get control of them, not only can we bring some of those pounds that we couldn't otherwise into resource when we're doing our next update... we can also explore onto those areas." 

The company already has permitted drill holes ready for these newly acquired lands, representing what management characterises as "low-hanging fruit" for resource expansion. The acquisition also provides improved access to mining areas and removes potential future operational restrictions.

Targeting Q3 Scoping Study with Positive Internal Economics

The company is targeting Q3 2026 for completion of its scoping study, with internal modelling suggesting positive economics at current uranium price assumptions. Lane outlined preliminary parameters: 

"From our internal modelling based on an all-in sustaining cost of around... in that sort of $40 give or take range and an assumed CAPEX of around... 60 to 70 million bucks... startup capital in the region of maybe 45 to 50, we can see that the NPV and IRR for a project like this with a mine life of around... somewhere in the sort of 8 to 10 year mark, the economics look very positive."

These assumptions contemplate a uranium price environment "north of $90, $100," reflecting the term contract pricing the company believes will prevail for deliveries into 2029-2030 and beyond. While spot prices have remained subdued in thin trading, term prices have been pushing above $90, with indications that contract prices for delivery to U.S. utilities may be reaching the $100-plus level.

The scoping study will address whether the project can support development as either a standalone central processing plant or as a satellite operation feeding into existing infrastructure. Lane noted that while a satellite configuration might save approximately $10 million in capital expenditure compared to a central processing plant, the company's internal modelling shows positive returns even with the additional capital required for standalone operations.

Interview with Bruce Lane, Executive Director & CEO of American Uranium

Capital Raise Funds Path Toward Production

American Uranium recently completed a $2.64 million placement and launched a rights issue to existing shareholders, maintaining support from approximately 3,200 shareholders including major holder Frontier Nuclear and Minerals at 9.9%. The capital raise is designed to fund completion of the drilling program, additional hydrogeological testing, metallurgical work, and initiation of the permitting process.

When asked about the capital raise strategy, Lane acknowledged the challenging valuation environment: 

"We still struggle to understand why our share price is so far below what we believe the intrinsic value of the company is... I think it's a little frustrating that the real intrinsic value of the asset is not showing up in our share price."

However, he emphasised that raising equity at current valuations to fund a $45-50 million construction program "doesn't look very realistic from where we sit today." Instead, the company is positioning for alternative funding scenarios once the scoping study establishes economic viability. Lane expressed confidence that 

"if the pounds are there, the economic model looks good and there's no fatal flaws in terms of getting through the execution of developing that project... the project will get funded one way or another."

Jurisdictional Advantages in Established ISR Basin

Lo Herma's location in Wyoming's Powder River Basin provides significant advantages relative to greenfield uranium projects. The region has hosted ISR uranium mining since the 1970s, with six to seven permitted facilities in the immediate vicinity. Nearby operations include Cameco's Smith Ranch (10 miles east), UEC's Irigaray/Christensen Ranch facilities (40 miles away), and the Ur-Energy's Shirley Basin project currently in commissioning at 8.8 million pounds.

"We're in a basin that has had in situ recovery uranium mining conducted since the 1970s. So, in terms of the jurisdictional risk, we know that these projects are supported at the state level."

The infrastructure includes access to power, roads, and a local workforce with specific ISR technical expertise in wellfield development.

This established operating environment significantly de-risks the permitting pathway. The company is working with Petrotek, a long-standing technical player in basin ISR projects, to advance the next phase of hydrogeological work and begin the aquifer exemption permitting process - critical for meeting a 2029-30 production timeline.

Technical Work Program: Balancing Confidence and Expansion

The remaining drilling program reflects a deliberate balance between increasing resource confidence and pursuing extensions. While additional pounds increase project value, Lane emphasised the importance of demonstrating continuity: 

"We believe that you've got to show the continuity from a confidence point of view and also around the hydrogeological modelling."

The hydrogeological work program includes additional pumping tests - measured in weeks rather than months - to establish transmissivity and permeability parameters for the aquifer, particularly in mine unit one targeted for early development. The company is also developing certain drill holes into water monitoring wells, creating dual value from the drilling investment by supporting both resource definition and future permitting requirements.

Lane indicated that the work completed to date is already sufficient for the scoping study, but the additional testing provides "that next layer of confidence" at marginal incremental cost since crews are already mobilized for the drilling program.

Market Positioning and Competitive Landscape

American Uranium positions itself as one of the few junior uranium companies with a defined ISR resource outside the established producers (UEC, enCcore, Ur-Energy, Cameco). Lane asserted that "we're the only one out there as far as I'm aware that can even talk about getting to a study within the sort of time frames that we have."

Addressing concerns about ISR technical risk, Lane drew distinctions between Lo Herma and problematic projects like Peninsula's Lance operation, which faced metallurgical challenges in a different geological setting. "If you look at our project, it looks much more like Cameco's Smith Ranch 10 miles away from us," he explained, noting that Lo Herma's metallurgical testing uses similar lixiviant chemistry to the nearby Cameco operation and benefits from clean groundwater without the salinity or problematic calcium/magnesium levels that have challenged other ISR projects.

The company sees itself positioned for a market environment where "there's much more of a focus on looking at projects that are close to development and can get through the permitting and into construction in that window around 2029, 2030."

The Investment Thesis for American Uranium

• Near-Term Production Pathway: Scoping study in Q3 2026 positions Lo Herma for potential 2029-30 production timeline, aligning with U.S. supply gap of ~47-50 million pounds as domestic reactor fleet expands and strategic stockpiling accelerates
• Scale Approaching Economic Threshold: Current 9.45M lb resource with 7M lbs in proposed mine units targets 8-9M lb scale comparable to nearby developing projects (Shirley Basin 8.8M lbs, Ludeman ~10M lbs) validated by current development activity
• De-Risked Jurisdiction: Located among 6-7 permitted ISR facilities in Powder River Basin with 50+ years of operating history, established permitting pathways, available infrastructure (power, roads), and local technical workforce
• Strengthening Uranium Fundamentals: Term contract prices pushing toward $100/lb for 2029-30 delivery create favorable economics against estimated $40/lb all-in sustaining costs and $60-70M capital expenditure
• Multiple Value Realisation Paths: Scale and location provide optionality as standalone central processing plant, satellite to existing operations, or strategic acquisition target as producers seek to fill supply commitments
• Resource Expansion Potential: Exploration target of additional 6-11M lbs beyond current resource, recently acquired mineral rights provide drill-ready targets, 50% of drilling program still to be completed
• Comparable Metallurgy: Bottle roll testing validates similar lixiviant chemistry to nearby Cameco Smith Ranch operation, clean groundwater without salinity/carbonate challenges that have impacted other ISR projects
• Capital Efficiency: Current drilling program increases both resource size and confidence levels while developing holes into water monitoring wells, advancing permitting timeline at marginal incremental cost
• Undervalued Relative to Asset Quality: Management identifies significant disconnect between current market capitalisation and intrinsic asset value as capital flows remain concentrated in established producers rather than near-term development candidates

Macro Thematic Analysis

The U.S. uranium supply deficit represents one of the most compelling energy infrastructure challenges of the decade. With domestic production having collapsed from over 40 million pounds annually in the 1980s to under 200,000 pounds today, the United States relies almost entirely on foreign supply despite operating the world's largest reactor fleet. The Biden and Trump administrations have both prioritised uranium supply chain security, with the recent Russian import ban accelerating the need for domestic production. 

Simultaneously, AI-driven data center growth, planned small modular reactor deployments, and potential reactor life extensions are expanding demand beyond initial projections. The term contract market reflects this reality, with prices for 2029-30 delivery reportedly approaching $100 per pound - a level that makes previously marginal deposits economically viable and drives strategic competition for near-term production capacity.

TL;DR

American Uranium is advancing its 9.45M lb Lo Herma ISR project in Wyoming's Powder River Basin toward a Q3 2026 scoping study, targeting 8-9M lb scale for economic viability comparable to nearby developing projects. Located among established ISR operations with proven infrastructure and permitting pathways, the company is positioning for potential 2029-30 production to address U.S. supply gap of ~47M lbs. Recent capital raise funds drilling completion, hydrogeological testing, and permitting initiation, with term uranium prices approaching $100/lb creating favorable economics against estimated $40/lb sustaining costs and $60-70M capex.

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