GTI Energy (ASX:GTR) is set to begin drilling at the Lo Herma Uranium Project in the US, after receiving approval from the Bureau of Land Management.
Once the State of Wyoming’s Land Quality Division has progressed with the review of the permit amendments, GTI will mobilise drill rigs and begin drilling in September 2025 contracting its preferred drill contractor Single Water Services and Hawkins CBM Logging.
The program will comprise up to 121 holes for 37,500m of drilling. The program is designed to target resource expansion to the north of the proposed mine units, as well as upgrade the current inferred resource to an indicated or measured category.
GTI Energy, which has a market capitalisation of $11.16 million, says the program also includes provision for the installation of additional groundwater observation wells to support subsequent further hydrogeologic testing.
The company notes this work is essential for understanding groundwater dynamics and ensuring environmentally responsible operations.
Diamond drilling will also collect further mineralised core samples for additional metallurgical testing, aimed at optimising mineral processing and recovery techniques.
Executive Director Bruce Lane says with the uranium sector regaining strong institutional and government backing in the US, the project is positioned to help fill the critical supply gap.
“The resource update will be followed by a revised Scoping Study to outline the project economics as we move towards a final investment decision for mine construction,” Lane says.
In June 2025, the company revealed Lo Herma as a competitive low-cost uranium operation using the in-situ recovery process. The seven-year mine life asset is forecast to produce 5.98 million pounds of triuranium octoxide, with an annual production target of 800,000 pounds, as reported by Mining.com.au.
According to research consultancy Thunder Said Energy’s global uranium supply-demand model, the market is 5% under-supplied through 2030. This includes a 7% market deficit at peak in 2025, as demand ramps from 165 million pounds per year to 230 million pounds per year.
The world’s nuclear fleet generated 2,700 terrawatt-hours (TWh) of electricity in 2023, consuming 165 million pounds of mined uranium. Thunder Said Energy forecasts these numbers to increase to 3,000 TWh of electricity by 2030, then to 7,000 TWh per year and 420 million pounds per year by 2050.
Trading Economics reports that uranium futures fell to US$71 per pound from a seven-month high of US$79 on 27 June 2025, as the lack of fresh buying by holding funds allowed utilities to set lower bids.
Write to Aaliyah Rogan at Mining.com.au
Images: GTI Energy
