GTI Energy Ltd (ASX:GTR, OTC:GTRIF) has deployed a rotary drilling rig to the Lo Herma in-situ recovery (ISR) uranium project in Wyoming, US, after securing all permits, bonds and access arrangements for a 17,000-metre resource expansion program.
The program has been designed over 76 drill holes focused on expanding and upgrading the current resource, while also collecting data on the hydrogeologic parameters of the mineralised aquifers, constructing groundwater monitoring wells and collecting rock samples for metallurgical testing.
Once complete, GTR intends to publish an updated mineral resource estimate (MRE) and exploration target range (ETR) for the project.
Targeting MRE and scoping study
“We are very pleased to be starting resource expansion drilling at Lo Herma on time,” GTI Energy executive director Bruce Lane said.
“We’re excited to be in a strong position to be able to complete the drilling program this quarter, with a revised mineral resource estimate to be rapidly advanced post-drilling.
“This work prepares GTI for a potential Lo Herma scoping study which we hope to commence later this year on the basis that we can grow the Lo Herma uranium resource estimate to a similar scale to ISR uranium mines currently being constructed or planned in Wyoming at UrEnergy’s Shirley Basin project and Encore’s Energy’s Gas Hills project.”
Lo Herma’s MRE currently sits at 4.11 million tonnes at 630 parts per million (ppm) uranium for 5.71 million pounds, while its ETR encompasses between 5.32 million and 6.65 million tonnes at 500 to 700 ppm for 5.87 million to 10.26 million pounds of uranium.
The company expects the updated mineral resource estimate to support near-term development of a scoping study, which will highlight the economic potential of the project.
GTR also intends to launch a rights entitlement offer to GTR shareholders and GTRO option holders imminently.