GTI Resources Limited will explore nearly 900 hectares of prime uranium real estate in the US state of Wyoming, finalising a milestone acquisition of the highly prospective territory amid a global resurgence in demand for the yellow-cake powder.
The company has finalised due diligence on its imminent Wyoming in-situ uranium purchase. The process included validating corporate, financial, legal, and technical aspects of the project. The successful completion is a major step forward for GTI.
The news comes as uranium continues to trade around futures trade around $44 a pound, having touched a 9-year high above $50 in mid-September as enthusiasm increased amid a buying frenzy by Sprott Physical Uranium.
Uranium’s newfound popularity means the price is up 42.5 pc this year. There is no time to waste for GTI. The company plans 100 rotary drill holes at the Thor Project. Permitting is well advanced and progressing well.
The Branka purchase supplements GTI’s interests in the Henry Mountains Uranium and Vanadium Project in Utah and the Kookynie Gold Project in Western Australia.
The International Atomic Energy Agency has revised up its projections of the potential growth of nuclear power capacity for electricity generation during the coming decades, as the world aims to move away from fossil fuels to fight climate change.
“We’re excited at the prospect of getting into the field in Wyoming,” executive director Bruce Lane said.
“We’ve made great progress towards settling the acquisition of Branka and getting organised for our maiden drilling campaign in Wyoming.”
In August, GTI made a move to buy 100 pc of Branka Minerals, acquiring 22,000 acres of highly prospective and well-located mineral lode claims located in Wyoming and Colorado.
When the deal is finalised, GTI will become the largest uranium explorer in Wyoming excluding US, Canadian, and Russian interests.
In-situ recovery mining accounts for 100 pc of all uranium mining in Wyoming and 90 pc of uranium mining across the United States. Until 2015, Wyoming was the top uranium mining state in the US. GTI says there remains substantial sandstone-hosted uranium mineralisation in the area.
Subject to shareholder approval, GTI plans to finalize the Branka purchase in November. The company will then move quickly to commence a drilling program of 15,000 metres at the Thor project in Wyoming’s Great Divide Basin.
“The outlook for uranium power and uranium has improved rapidly over recent weeks and provides a solid foundation to fund the commencement of uranium exploration in Wyoming,” Mr Lane said.
“The coming period is set to be a busy one for the company.”
The company’s Australian Stock Market listed price is trading at 2.7c today (11:15 am GMT + 8 hours).