GTI Energy Aims to Expand US ISR Uranium Project in Strengthening Market

• GTI Energy is developing a 5.7 million pound uranium resource at their Lo Herma project in Wyoming with plans to further expand the resource through drilling this year.
• The company believes 10-15 million pound ISR uranium projects in Wyoming are economically viable, especially at higher uranium prices around $100/lb.
• GTI is moving from exploration to resource development and plans to complete an economic study on Lo Herma in the next 1-2 years to validate the project's potential.
• With an experienced technical team including the recent addition an experienced geologist and engineer with expertise in ISR project development and economic studies.
• GTI is looking to raise capital in the near-term to fund additional drilling to grow the Lo Herma resource towards that 10+ million pound target.

Lo Herma Uranium Project

GTI Energy (ASX:GTR) is an emerging in-situ recovery (ISR) uranium developer focused on advancing its 5.7 million-pound Lo Herma project in Wyoming's Great Divide Basin. With several major uranium producers nearby and a rising uranium price, GTI believes Lo Herma has the potential to be an economically attractive 10+ million pound ISR development. The company is shifting its focus from exploration to resource growth and economic studies, aiming to demonstrate Lo Herma's value in the next 1-2 years.

Lo Herma currently hosts a 5.7 million pound uranium resource, but GTI believes there is strong potential to expand this to over 10 million pounds through additional drilling. Executive Director Bruce Lane explained

"If you look at Ur-Energy's next project Shirley Basin, it's about 8.8 million pounds. So the size of the project is really attractive economically, even at $65 a pound. We know that our project is of that ilk."

Interview with Executive Director Bruce Lane

Shifting to Resource Development

Having established an initial resource at Lo Herma, GTI is now focusing on growing the resource to enhance the project's economic potential. The company plans to drill 70-80 additional holes at Lo Herma this year to upgrade and expand the resource.

Longer-term, GTI aims to complete an economic study on the project within the next 18-24 months to further validate its potential. Lane noted:

"Our job is to define the resource on the ground and have it at a good enough quality to be able to support a study. We've got good geological engineering support as it is, but it's important to have somebody on board not just from a technical point of view but also from a commercial standpoint."

Strengthened Technical Team

To support the company's push towards development, GTI recently added ISR expert Matt Hartman to its technical team. Hartman is a geologist and engineer with experience across all stages of ISR project development, including economic studies. He previously worked with major ISR uranium projects in the area like Cameco's Smith Ranch-Highland.

GTI believes Hartman's expertise will be invaluable as it advances Lo Herma towards an economic study and eventual development. His industry knowledge and connections are also expected to benefit the company.

Capital Raising on the Horizon

With around $2 million cash on hand, GTI is preparing to raise additional funds in the near-term to support its planned drilling and development activities. The company sees strong interest from investors given the advanced nature of Lo Herma compared to other uranium exploration projects.

GTI will look to capitalize on positive industry trends like producers restarting idled capacity and a strengthening uranium price to secure funding on favorable terms. The company is also aiming to boost its profile with North American institutional investors to expand its funding options.

Conclusion

GTI Energy appears well-positioned to advance its Lo Herma uranium project towards development as the industry continues to recover. With a sizeable existing resource, strong expansion potential, an experienced team, and a favorable jurisdiction, Lo Herma seems to check a lot of boxes for a successful ISR development. Securing additional funding to upgrade and grow the resource will be a key near-term catalyst to watch. If the company can continue to derisk Lo Herma and demonstrate its economic viability, GTI could emerge as an appealing investment option in the uranium space.

The Investment Thesis for GTI Energy

• 5.7M lb existing resource with potential to expand to 10M+ lbs
• Experienced ISR development team including new hire Matt Hartman
• Aiming to complete economic study in 12-24 months to validate the project
• Preparing to raise capital to fund resource expansion drilling
• Attractive location in a major Wyoming uranium district near operating mines
• Exposure to strengthening uranium market with prices breaking $100/lb
• Actionable catalysts: upcoming drill results, resource update, economic study

GTI Energy's Lo Herma project appears to be a promising undervalued ISR uranium development story in a top jurisdiction. With a credible path to expanding the resource to a more economically viable 10+ million pounds, an experienced technical team, and several potential near-term catalysts, the company looks well positioned to re-rate as the uranium market continues to strengthen. Securing funding to aggressively grow the resource will be important to watch in the coming months. Overall, GTI offers investors leveraged exposure to a rising uranium price through a relatively de-risked, advanced-stage ISR asset in a top district.

Macro Thematic Analysis

The outlook for the uranium industry continues to improve, driven by growing recognition of nuclear power's role in the clean energy transition and a tightening supply picture. With uncovered utility demand set to rise in the coming years, many analysts forecast uranium prices will head higher to incentivize new supply.

This bodes well for uranium developers like GTI Energy as higher prices can dramatically improve the economics of projects. As Executive Director Bruce Lane explained, even a price around $65/lb makes 10-15 million pound ISR projects in Wyoming very attractive.

Investors looking for leverage to rising uranium prices will likely turn to earlier-stage names. Companies with advanced, de-risked assets in top jurisdictions like GTI Energy should be well-positioned to benefit.  The key will be securing funding to advance projects towards production and being able to demonstrate economically viable resources. Those who can do so successfully have the potential to generate substantial returns in an increasingly bullish uranium market.