GTI Energy's Exploration Leverage to Burgeoning US Uranium Bull Market

• GTI Energy is actively exploring uranium projects in Wyoming, with the goal of growing resources quickly this year.
• The uranium market is seeing increased interest and excitement, which is influencing GTI's strategy and approach. They are investing more into operations and telling their story more broadly.
• GTI sees strong uranium demand in the US coupled with domestic supply challenges, creating an opportunity for their Wyoming projects. The geology is well understood.
• Key risks include general exploration uncertainties, inflationary pressures on costs, and securing permits. But they see their risk as modest compared to some higher cost, higher risk exploration scenarios.
• GTI aims to continue advancing resources towards being able to articulate project economics and a path to development within the next 1-2 years.

About GTI Energy

The uranium market is experiencing a major resurgence in interest from investors and industry participants. This comes as a confluence of factors has led to structural supply shortages against a backdrop of steady existing reactor demand and ambitious nuclear growth plans worldwide. As the uranium price has tripled over the past 2 years, mining companies are restarting idled capacity and new developers are entering the fray.

In this environment, uranium exploration companies with assets that can be feasibly developed offer investors leverage to further commodity price appreciation. One such company, ASX-listed GTI Energy, is focused exclusively on advancing in situ recovery (ISR) uranium projects in uranium-friendly Wyoming, USA. Their position in a tier-one mining jurisdiction with understood geology and nearby existing production gives their exploration efforts strong viability.

Interview with Executive Director, Bruce Lane

The US Market Opportunity

GTI Energy's Managing Director Bruce Lane sees clear signals that the US must develop more domestic uranium capacity. The US currently requires 50 million pounds of uranium annually for its existing nuclear reactor fleet, with ambitions to triple installed nuclear capacity to 100 GWe by 2050. However, primary foreign supply sources like Canada, Australia and Kazakhstan cannot fully satisfy this demand. Geopolitical tensions with major supplier Russia also jeopardize future uranium flows.

As Lane explains, "being in the US where they've got not only a big existing demand - 50 million pounds - but they've also said they want to triple nuclear power to 300 GWe from the current 100 GWe so the future looks pretty strong in terms of a uranium requirement".

The US was once self-sufficient in uranium production, but output dropped significantly due to difficult market conditions. With prices now at eight-year highs, US-based uranium miners are restarting operations en masse. In Wyoming specifically, “we know with this uranium price that projects are economic...that's why they're switching them all back on at the moment,” says Lane. The economic viability of production in the region demonstrates the prospects for GTI’s own Wyoming deposits.

GTI’s Exploration Approach

GTI Energy is focusing exclusively on ISR-amenable uranium deposits in Wyoming. ISR mining is considered very low impact, with minimal surface disturbance and emissions compared to conventional mining. By injecting solutions into sandstone-hosted uranium mineralization underground, uranium can be dissolved and pumped out without digging an open pit or underground mine. These features make it generally more cost-effective and easier to permit.

The company’s flagship project called Lo Herma lies close to Ur-Energy’s producing Lost Creek ISR uranium facility, providing direct geological and technical validation. According to Lane, “We’re dealing with the same sort of geology same sort of thicknesses and depth...which will give us great confidence that the economics shouldn't be too crazy". Ongoing exploration drilling is aimed at expanding the current uranium resource base.

Key Investment Takeaways

• Uranium fundamentals continue strengthening - critical supply deficits not satisfied by secondary supplies
• US strategy to pursue energy security will necessitate more domestic uranium production
• Wyoming's historical uranium mining district is economically viable at current prices
• GTI's project leverages proven ISR mining districts to contain risks
• Aggressive drilling campaign aims to rapidly expand existing uranium resources
• Clear path to demonstrate economic viability by 2025

With demand for uranium continuing to outstrip supplies from primary production, attractive opportunities exist to develop projects in historical uranium-producing districts now economically viable again at higher prices. GTI Energy provides investors leverage to further upside in the uranium price by aggressively exploring and expanding resources in Wyoming'. The application of ISR mining methods and nearby infrastructure also serves to minimize capital requirements and risks. As uranium market conditions continue to improve, GTI Energy has a clear pathway towards official economic studies by 2025, allowing investors to realize success from the early stages of exploration.