Early Rig Mobilisation Raises Stakes for Lo Herma’s Resource Expansion
American Uranium has mobilised a drill rig ahead of schedule at its Lo Herma ISR uranium project in Wyoming, aiming to grow and upgrade its existing 8.57 million pound uranium resource through a two-phase drilling campaign.
- Drill rig mobilised early to start resource expansion drilling
- Phase 1 targets growth of 8.57Mlb uranium resource with ~50 holes
- Phase 2 planned for Q1 2026 to upgrade resource confidence
- Interim Mineral Resource Estimate update expected early 2026
- All permits, bonds, and site access secured for up to 121 holes
Early Mobilisation Signals Confidence
American Uranium Limited (ASX, AMU) has taken a decisive step forward at its flagship Lo Herma ISR uranium project in Wyoming’s Powder River Basin by mobilising a mud rotary drill rig ahead of schedule. This early start to the resource development drilling program underscores the company’s confidence in advancing one of the United States’ most promising near-term, low-cost uranium projects.
Two-Phase Drilling Campaign to Expand and Upgrade Resources
The drilling program is structured in two distinct phases. Phase 1, commencing this week, involves approximately 50 drill holes covering 15,000 metres. This phase focuses on step-out drilling north of the proposed Mine Units 1 and 2, targeting expansion of the current 8.57 million pound uranium resource. The goal is to increase the resource base ahead of an interim Mineral Resource Estimate update anticipated in early 2026.
Phase 2, scheduled for the first quarter of 2026, will concentrate on infill drilling with around 71 holes and 22,500 metres planned. This phase aims to enhance the confidence level of the resource by increasing the proportion of Indicated and Measured categories within the mine units, thereby supporting a more robust updated Scoping Study expected in the second quarter of 2026.
Strategic Positioning in a Competitive Basin
Lo Herma’s location in the Powder River Basin places it among a cluster of uranium projects benefiting from established infrastructure and regulatory frameworks. American Uranium’s CEO Bruce Lane highlighted the project’s potential to deliver economic outcomes comparable to other ISR uranium mines in Wyoming, such as Ur-Energy’s Shirley Basin project. The company’s proactive approach to securing all necessary permits, bonds, and site access ahead of drilling commencement further positions Lo Herma for timely advancement.
Technical Oversight and Regulatory Compliance
The drilling campaign and resource estimates are overseen by industry veteran Doug Beahm of BRS Engineering Inc., whose extensive experience in uranium exploration and mining in the western United States lends credibility to the project’s technical foundation. The company confirms that all material assumptions and technical parameters underpinning previous resource estimates remain valid, ensuring continuity and reliability in reporting.
Looking Ahead
As American Uranium embarks on this critical phase of resource development, the market will be watching closely for the interim resource update and subsequent Scoping Study results. These milestones will be pivotal in validating Lo Herma’s economic potential and could influence the company’s strategic direction and investor sentiment in the months ahead.
Bottom Line?
Lo Herma’s accelerated drilling campaign sets the stage for a pivotal resource update that could reshape American Uranium’s growth trajectory.
Questions in the middle?
- Will Phase 1 drilling significantly increase the current 8.57Mlb uranium resource?
- How will the upgraded resource confidence from Phase 2 impact project economics?
- What comparative advantages does Lo Herma hold against other Wyoming ISR uranium projects?
