GTI Energy (ASX:GTR) - GTI Energy (ASX:GTR) - Lo Herma Uranium Project Completes All Fieldwork - Feasibility Study Imminent

03/05/25 • 21 min

Interview with Bruce Lane, Executive Director, GTI Energy

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-boosts-wyoming-uranium-resource-by-50-advances-development-plans-6420

Recording date: 3rd of March, 2025

GTI Energy is making significant progress on its uranium in-situ recovery (ISR) projects in Wyoming, with a focus on the Lo Herma project that recently reached 8.57 million pounds of uranium resources, 30% in the indicated category. This resource size strategically positions the company alongside similar economic projects in the region being developed by established players like UR Energy and enCore.

Executive Director Bruce Lane reports that the company has completed all fieldwork for their feasibility study, including successful metallurgical testing showing good uranium recoveries using alkaline leach processes and permeability testing confirming the project's suitability for ISR methods. The study, conducted by BRS Engineering from Riverton, Wyoming, is expected to be delivered within the next 1-2 months.

The economics appear promising, with anticipated capital expenditure of approximately $50-55 million and potential production of around 1 million pounds of uranium annually over an 8-10 year mine life. At uranium prices around $80 per pound, Lane suggests the project could generate $30-40 per pound in free cash flow, offering relatively quick payback and manageable risk.

GTI is exploring multiple strategic pathways forward, including growing their resource base and pushing toward permitting, developing satellite deposits, pursuing joint ventures, or potential partnerships with industry players. Lane emphasized their focus on proving the economic case by confirming the geology, metallurgy, and permeability to demonstrate the project's viability as a standalone operation.

The current uranium market presents challenges, with spot prices having declined significantly since early last year. However, Lane expressed confidence in eventual improvement, citing fundamental supply-demand dynamics, particularly as the United States aims to achieve self-sufficiency in uranium production, targeting 50 million pounds annually.

Given current market conditions, GTI is considering alternative financing approaches beyond traditional equity-debt structures, potentially involving strategic investment from industry participants. Lane also noted the possibility of industry consolidation in the exploration and pre-development space over the next 3-12 months.

While they won't be filing development permits this year, Lane indicated it would be feasible to reach that stage within the next 18-24 months if properly funded. As the U.S. works to secure domestic uranium supply, GTI Energy's Wyoming projects represent one piece of what Lane describes as a "game of inches" approach to rebuilding American uranium production capacity.

Learn more: https://www.cruxinvestor.com/companies/gti-energy

Interview with Bruce Lane, Executive Director, GTI Energy

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-boosts-wyoming-uranium-resource-by-50-advances-development-plans-6420

Recording date: 3rd of March, 2025

Learn more: https://www.cruxinvestor.com/companies/gti-energy

Previous Episode

Magna Mining (TSXV:NICU) From Producer to Powerhouse: Magna Mining’s Bold Growth Plan

Interview with Jason Jessup, CEO of Magna Mining Inc.

Our previous interview: https://www.cruxinvestor.com/posts/magna-mining-tsxvnicu-magna-bets-on-coppers-future-with-acquisition-of-kghms-sudbury-portfolio-6411

Recording date: 3rd March 2025

Magna Mining is a rising star in the Canadian mining sector, poised to capitalize on the surging demand for critical metals like nickel and copper. With a portfolio of high-quality assets in the world-renowned Sudbury Basin, Magna offers investors a compelling opportunity to gain exposure to the electrification megatrend.

At the heart of Magna's story is the McCreedy West mine, a cornerstone asset already in production. With a history of mining since the late 1990s, McCreedy West boasts a substantial resource base of over 9 million tons. Magna is now ramping up operations, with plans to boost throughput to 400-500,000 tons per year. Even more exciting, Magna is targeting higher grades of 4-5% copper, a level rarely seen in global mining today. This combination of scale and grade is set to generate significant cashflows, giving Magna the firepower to fund aggressive growth.

But McCreedy West is just the beginning. Magna's crown jewel is the past-producing Levack mine, a high-grade monster that previously yielded head grades of 8-10%+ copper. Magna is now aggressively exploring the Levack deposit, with drills already turning to expand the resource. The potential is immense – with historic production of over 60 million tons, Levack could be a true company-maker for Magna. Management is targeting a rapid restart by 2026, which could propel Magna into the ranks of the mid-tier producers.

Magna has a pipeline of over five permitted projects in the Sudbury Basin, giving it incredible optionality and scale potential. From the advanced-stage Crean Hill project to the low-capex Shakespeare open pit, Magna controls a string of pearls in one of the world's most prolific mining camps. This creates the potential for Magna to evolve into a true district-scale producer over time, leveraging shared infrastructure and a centralized management team to drive industry-leading margins.

Critical to Magna's success is the strength of its leadership. CEO Jason Jessup is a mining veteran with a proven track record of value creation, having played a key role in building FNX Mining into a Sudbury heavyweight. He leads a technical team with decades of experience in the basin, giving Magna a true home field advantage. This deep knowledge base is complemented by a bold vision for growth and the proven ability to attract capital. Magna's recent $30m raise highlights the confidence the market has in the company's prospects.

With the tailwinds of electrification and decarbonization at its back, the company is perfectly positioned to ride the coming wave of demand for nickel and copper. As Jessup says, "This isn't about now we're a producer, we're done. This is about building into something that's significant." For investors looking to align themselves with that vision, Magna Mining presents a uniquely compelling opportunity. In a world hungry for critical metals, Magna is ready to deliver.

View Magna Mining's company profile: https://www.cruxinvestor.com/companies/magna-mining

Next Episode

Empress Royalty (TSXV:EMPR) - Cash Flow Positive Streamer Hits $8M Revenue, Eyes $16M in 2025

Interview with David Rhodes, Executive Chairman, and Alexandra Woodyer Sherron, President & CEO of Empress Royalty Corp.

Our previous interview: https://www.cruxinvestor.com/posts/empress-royalty-tsxvempr-chairman-bullish-on-companys-potential-to-deliver-significant-growth-6299

Recording date: 3rd March 2025

Empress Royalty Corp. has reached a significant milestone in its growth trajectory, achieving positive cash flow and $8 million in revenue for 2024, more than doubling the $3.5 million generated in 2023. The company projects continued strong growth, with expectations to double revenue again to $15-16 million in 2025 based solely on their existing portfolio.

This revenue is derived from four key assets: a silver stream in Mexico, a gold stream in Peru, a gold royalty in Mozambique, and a gold royalty in South Africa. The portfolio is already showing strong returns on investment, with Empress recovering nearly 90% of their $5 million investment in the Mexico project, about half of their $10 million Peru investment, and exceeding their initial $3 million Mozambique investment with $4.2 million returned to date.

Empress differentiates itself in the royalty and streaming sector through its active investment approach, focusing on junior mining companies that are either entering production or expanding operations. Unlike competitors who may passively acquire existing royalties or focus on early-stage exploration, Empress directly invests in mining companies and maintains close operational relationships, including regular reporting and site visits.

"Our business motto is doubling every year our cash flow and our revenue. That takes wise stewardship and that's a little different. We're not just all about making the market happy; we're about building a business," stated David Rhodes, Executive Chairman.

The company has maintained disciplined capital allocation, evaluating over 10 potential deals last year but advancing none due to technical or other concerns. This selective approach has ensured their existing investments perform well while preserving capital for strategic opportunities.

Having achieved positive cash flow, Empress is now positioned to reinvest incoming revenue into new opportunities without diluting existing shareholders. They also maintain access to $20 million in funding from financial partner Nebari, providing additional capacity for growth while keeping general and administrative expenses flat at approximately $2 million annually.

The company is currently in advanced discussions regarding a potential new investment in the United States, while also evaluating opportunities in Africa and South America. Empress maintains a flexible approach to geographical risk, leveraging management's international experience to evaluate and structure investments in diverse locations.

As Rhodes noted regarding their precious metals focus: "We believe in gold, we believe it's going to $3,000, we believe in silver, we believe that's going to $40." This outlook would dramatically enhance returns from their existing portfolio while creating opportunities for new deals as mining companies seek capital to benefit from higher metal prices.

View Empress Royalty's company profile: https://www.cruxinvestor.com/companies/empress-royalty