GTI Energy Ltd (GTI) has retracted its recent ASX announcements regarding the Lo Herma scoping study, specifically the announcements released on June 5, 2025, titled “Scoping Study Demonstrates Low Cost ISR Uranium Potential” and “Scoping Study Demonstrates Low Cost Potential (Replacement).” The retraction follows consultations with the Australian Securities Exchange (ASX) regarding the company’s forward-looking statements, including production targets and forecast financial information. GTI Energy acknowledges that it lacked a reasonable basis for these forward-looking statements because of the significant proportion of inferred mineral resources underpinning the production target. The company explicitly advises investors not to rely on the retracted scoping study announcements as a basis for investment decisions, given the absence of a reasonable basis for the statements made therein.
The core issue lies in the classification of mineral resources. Inferred mineral resources are the lowest confidence category and carry a high degree of uncertainty regarding their existence and economic viability. Basing production targets primarily on inferred resources is viewed as speculative and does not meet the standards required for reliable forecasts, hence the ASX’s concern and subsequent retraction. GTI Energy is now focusing on bolstering the resource confidence through an upcoming drilling program. The aim is to upgrade the inferred mineral resource portion of the Lo Herma Mineral Resource Estimate to a higher confidence level. This drilling program will also include step-out drilling to expand the overall footprint of the deposit. Further details regarding this drilling program will be released in due course. This strategic shift suggests a move towards a more conservative and substantiated approach to resource estimation and project development, prioritizing data quality and investor confidence.
