GTI Energy Boosts Wyoming Uranium Resource by 50%, Advances Development Plans

• GTI Energy's lead ISR uranium project in Wyoming, Lo Herma, has updated its resource to 8.57M lbs U3O8, a 50% increase, with 32% now in the indicated category
• This resource size is sufficient for a potential central processing plant and satellite operation, with additional exploration upside of 6-11M lbs
• GTI aims to complete a scoping study on Lo Herma in H1 2025 to establish project economics and development options
• Wyoming is an established uranium mining jurisdiction with seven permitted facilities and multiple companies advancing projects
• GTI believes U.S. uranium pounds are becoming increasingly valuable given domestic supply deficits and geopolitical factors cutting off Russian imports

As the global push for clean energy intensifies, the uranium market is poised for a resurgence. GTI Energy (GTI), is an emerging ASX Listed, U.S. uranium developer, working to create a position in this market. With a substantial resource base in Wyoming, the largest uranium-producing state in the U.S., GTI is well-positioned to benefit from the growing demand for domestic uranium supply. 

Sizeable and Expanding Resource 

GTI recently announced a 50% increase in the uranium resource at its Lo Herma ISR project to 8.57 million pounds U3O8. Notably, over 30% of this was upgraded to the higher confidence indicated category. As Lane explained,

We've been able to overshoot that which is great… a 50% increase in the resource size and we've also lifted about 30% of that or just over 30% into indicator classification.

While still relatively small compared to Tier 1 assets, an 8.57 million pound resource is sufficient to support a central processing plant and satellite operation in Wyoming's amenable geology. Lo Herma's resource also remains open, with an exploration target for an additional 6-11 million pounds. GTI's total Wyoming resource inventory including other projects exceeds 10 million pounds. This provides a meaningful foundation to build upon.

Interview with Executive Director Bruce Lane

Upcoming Catalysts 

With the updated resource in hand, GTI is moving forward on a scoping study to establish the economics of a future operation. According to Lane,

First stop is to do the scoping study as a baseline and we'll run some scenarios off that baseline of resource that we've got.

He expects the study could be released as early as Q1 2025 but certainly in the first half of the year.

The study will provide crucial insights into the potential economic viability and upside of the Lo Herma project. In particular, it will examine the potential for a central processing plant and satellite facilities, a common development approach used by other ISR miners in the region like Ur-Energy. Positive study results could be a major re-rating catalyst for GTI.

Proven Uranium Mining Jurisdiction

Wyoming has a long history of successful uranium mining, a critical advantage for GTI. As Lane points out,

It's pretty clear that you can execute a uranium project in Wyoming as long as the price is there and we believe the price is there or thereabouts now.

He cites several companies operating in the state like Ur-Energy and Energy Fuels as proof of Wyoming's established uranium mining industry.

Having projects located in the U.S. also provides a distinct advantage in the current geopolitical environment. U.S. utilities are increasingly looking for domestic sources of uranium rather than relying on imports. The Russian invasion of Ukraine and subsequent sanctions have further exacerbated security of supply concerns. 

Unique Position in Uranium Lifecycle

GTI occupies a unique position in the uranium development lifecycle. While more advanced than early-stage explorers, GTI is still at an earlier stage than developers and producers with fully permitted projects. This allows investors to gain exposure to the uranium upside potential but with lower relative risk than explorers. Lane elaborated,

All of the guys who are in the early stage in the cycle and around us in Wyoming don't have any resources, they don't have any pounds in the ground. Then it's a jump up to the guys who are permitted and have processing facilities and who are either delivering pounds now or will be in the short term. So there's a real gap between those guys and the explorers.

The Investment Thesis for GTI Energy

• Meaningful 8.57M lb resource in an established U.S. uranium mining state provides a solid foundation
• Upcoming scoping study results in H1 2025 are a potential major catalyst to demonstrate project economics
• Exposure to uranium price upside while avoiding permitting and development risks of explorers
• U.S. projects increasingly attractive to utilities looking for domestic supply
• Still flying under the radar, trading at a discount to peers on a per-pound basis

Macro Thematic Analysis

The outlook for the uranium industry is the most bullish it's been in years. A structural supply deficit has been building as demand growth from nuclear energy outpaces limited primary mine supply. This has been exacerbated by COVID-related supply disruptions and ongoing geopolitical risks, particularly the loss of Russian supplies to Western utilities.

Security of supply is becoming paramount. Utilities are increasingly looking to lock in long-term contracts with trusted suppliers. Governments are also getting involved, with the U.S. looking to support the domestic industry through strategic stockpiling and other measures. This is creating opportunities for projects in stable jurisdictions like the U.S. to move forward and fill the supply gap. As Lane sums it up,

U.S. pounds are obviously looking more and more valuable as the U.S. tries to backfill that 50 million pound annual gap that it's got, the Russians having just cut them off from 25% of their enrichment supply.