Overview: GTI Resources Ltd (“GTI”, “the Company”) is an Australian minerals exploration company focused on uranium and vanadium. The Company’s flagship assets are located in the prolific Henry Mountains region in Utah, USA with an initial focus on the Jeffrey Project. The Henry Mountains region contains high grade uranium & vanadium deposits having produced 17.5 Mt of ore averaging 2,400ppm U3O8 and 1.25% V2O5 (92 mlbs U3O8 and 482 mlbs V2O5) dating back from the early 1900’s. GTI acquired the projects in 2019 and is currently preparing for its maiden drill program, after sampling established its potential high-grade nature. GTI also owns the Niagara gold project, located in WA, which comprises a granted exploration licence and four prospecting licence applications.

Catalysts: Having recently completed down hole logging of 26 historical drill holes, GTI is now preparing for its maiden drilling program at the past producing Jeffrey Project in Utah. Located in close proximity to the only fully licenced and operational uranium mill in the US – the White Mesa Mill operated by Energy Fuels Inc (TSE: EFR) – the project has potential to deliver uranium ore to fill existing mill processing capacity. In addition, further sampling and mapping work has been conducted at the nearby highly prospective Rats Nest Project which has also produced uranium and vanadium ore in the past. Upcoming drilling activity scheduled for July offers a potential high impact value driver. Also, we expect the recently announced support from the US government for domestic uranium producers, and uranium market developments, to drive interest in the Company. Hurdles: Uranium spot prices have increased by over 30% year-to-date, but the uranium market is subject to significant price volatility and there is no guarantee that the recent recovery will deliver a long-term sustainable price environment. The Company is well funded to progress the next stage of drilling, it remains reliant on external capital to advance project development. Exploration is relatively inexpensive in this region, nevertheless considerable further capital and technical investigations are required to establish the feasibility and long-term economic merit of additional mining development in the Henry Mountains.

Investment View: GTI offers speculative exposure to a recovery in uranium markets through a portfolio of exploration assets in the prolific Henry Mountains region. We are attracted to the magnitude of the Company’s assets and proximity to existing infrastructure, particularly the White Mesa Uranium Mill which is the only conventional mill operating in the US. As the initial phase of exploration sampling yielded highly encouraging results, we believe the Company is well positioned to leverage its assets to capitalise on opportunities as it advances the project. While volatility in uranium prices and funding beyond the current programs are principal risks, the Company’s project represents a strategic exploration asset in a government backed sector. Amid a limited universe of investible securities on the ASX and with uranium spot prices trading near fouryear highs, we initiate coverage.

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