American Uranium (ASX:AMU) is preparing to begin hydrogeology testing and resource expansion drilling in the December quarter of 2025 at the Lo Herma In-Situ Recovery Uranium Project in the US.
The planned hydrogeologic tests will include step-drawdown tests to determine sustainable pumping rates, well efficiency and general hydraulic properties of the resource hosting aquifer.
The test results will be compared to the prior laboratory scale permeability testing to confirm that the hydrogeologic conditions at Lo Herma are conducive to
ISR mining methods and will support refinement of near-term wellfield planning at the Scoping Study level.
As previously reported, the Bureau of Land Management approved the company’s 121-hole for 37,500m drilling program. The program is designed to target resource expansion to the north of the proposed mine units and upgrade the current inferred resource to an indicated and measured category.
American Uranium, which has a market capitalisation of $21.42 million, intends to mobilise drill rigs during Q4 2025.
CEO Bruce Lane says these programs represent steps towards advancing one of the US most promising ISR uranium projects.
“The program is targeting an increase of the current 8.57 million pounds uranium-equivalent mineral resource estimate (MRE) by converting exploration target range mineralisation for Lo Herma which currently stands at 5.6 to 7.1 million tonnes @ a grade range of 500 parts per million (ppm) to 700ppm uranium-equivalent,” Lane says.
“This work is expected to feed into an updated MRE and Scoping Study in 2026 positioning us to deliver value from America’s nuclear energy revival.”
Uranium futures in the US rose to US$76.5 per pound, approaching the two-month high of US$77 touched on 8 September, amid bets of higher nuclear power capacity and downward revisions to supply expectations, according to Trading Economics.
A report from the World Nuclear Association forecasts that uranium demand for nuclear power is due to rise by 28% by 2030, reflecting government’s preference of nuclear power to reach energy security goals and increasing data-centre demand by software companies.
American Uranium, formerly known as GTI Energy, is focused on generating clean fuel to counteract climate change by reducing global greenhouse gas emissions.
Write to Aaliyah Rogan at Mining.com.au
Images: American Uranium
