GTI Energy Ltd (ASX:GTR) has seen its share price fall more than 12% as it told investors about the commencement of drilling and development of three groundwater monitoring wells at the Lo Hema ISR uranium project in Wyoming.

The wells are being developed to facilitate aquifer testing to confirm that Lo Hema is suitable for in-situ recovery (ISR) mining, as the company pushes forward with its scoping study for the project – expected in the first half of 2025, and to be conducted by Wyoming-based BRS Engineering Inc.

Metallurgical testing is also a priority activity for GTI, with drill core samples having been logged and split to facilitate this and chemical assaying back in early December. Following this, composites were prepared for metallurgical testing under alkaline leach conditions commonly used in ISR mining operations in the Powder River Basin – where the project is located.

Testing is continuing in line with expectation and results are expected during February 2025.

GTI executive director Bruce Lane said the company was streaming ahead with assessment work on the project.

“Following the recent major uplift in Lo Herma’s uranium resource, now 50% larger at 8.57Mlbs, our immediate focus is to complete a Scoping Study in the first half of 2025,” he said.

“This round of drilling will help confirm the orebody’s suitability for ISR mining.

“Results from aquifer testing and metallurgical testing should be available in February and are key inputs to the Scoping Study.”

At 14:12 AEDT, GTI’s shares were trading at 0.3 cents – a fall of 12.5% since the market opened.

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