GTI Energy scoping study outlines low-cost ISR operation for Lo Herma uranium project

A scoping study by GTI Energy (ASX: GTR) for the Lo Herma uranium project in Wyoming’s Southern Powder River Basin has demonstrated potential for a competitive and low-cost in-situ recovery (ISR) development.

Independent consultant BRS Engineering completed the study, which focused on the construction of an ISR mining operation with a central processing plant (CPP) to produce uranium oxide from the project’s estimated 8.57 million-pound resource.

GTI expects to commence construction activities at Lo Herma in 2028, with commissioning and production to begin the following year.

Satellite operation option

The study also assessed the potential for a cheaper satellite operation that would produce a uranium-pregnant liquor for final processing into uranium oxide at a third-party site via a toll processing agreement.

The capital expenditure estimate for the construction of the initial wellfield and CPP facilities was US$67 million – US$57m, if constructed as a satellite operation – with a 2.5-year payback.

These figures drop to US$43m and US$32m, respectively, on a pre-production basis.

BRS based this assuming life-of-mine production of 5.98 million pounds of uranium oxide over seven years for an annual target of 800,000lb.

Uranium demand

GTI Energy chief executive officer Bruce Lane said the low-cost Lo Herma project aimed to supply increasing uranium demand to support the US nuclear power industry.

“The capital costs to establish this initial project […] are quite low due to expected simple metallurgy and Lo Herma’s favourable location near critical infrastructure, as well as a local workforce and experienced mining services and business support centres,” he said.

“We believe the operating cost estimates are also in line with existing low-cost ISR operations in the Southern Powder River Basin, which is a globally recognised, experienced and supportive uranium mining jurisdiction.”

Next steps

GTI Energy is planning groundwater pumping tests to better understand Lo Herma’s underlying hydrology.

This will include the degree of hydraulic separation within the formations and between sandstone units, direction and rate of groundwater flow, horizontal conductivity and transmissivity, hydraulic gradient and storativity values.

The company will also conduct metallurgical testing of core samples to better define reaction kinetics and optimal lixiviant parameters.

It will conduct additional studies to consider power and water supply, logistics and equipment supply sources, product transport routes and further environmental and amenity considerations as part of a full feasibility assessment.