American Uranium Hits Its Best Drill Result Ever: Is This $15M Explorer a Buy?

American Uranium (ASX: AMU), formerly known as GTI Energy, has delivered what management calls its best drill result ever at the Lo Herma project in Wyoming. The standout hole returned a total hole grade-thickness (GT) of 1.41, with mineralisation intersected across 7.6 metres of stacked sand units, a strong result that suggests the deposit is larger than previously thought.

More importantly, the company confirmed 3km of new uranium trends north of its planned mine areas. This opens up fresh ground that was not included in earlier resource estimates. With 50 holes now drilled for around 16,300 metres in 2025, and 12 new mineral claims adding 96 hectares to the project, American Uranium is steadily building its story at a time when domestic US uranium supply has never been more important.

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Why Lo Herma Sits in Prime Uranium Territory

Location matters in mining, and Lo Herma has it. The project sits just 10 miles from Cameco’s Smith Ranch, the largest uranium operation in the United States. This is not a coincidence. The geology in this part of Wyoming has proven it can support large-scale, profitable uranium production.

Lo Herma is designed for in-situ recovery, or ISR. This is the cheapest way to mine uranium. Instead of digging open pits or underground tunnels, ISR pumps a solution through the ore underground and brings uranium to surface facilities. It costs less, gets permitted faster, and needs far less upfront capital. Recovery rates in this district typically hit around 75 per cent, which gives confidence that the project can work economically.

The current resource stands at 8.57 million pounds of uranium. The company believes exploration could add another 6 to 11 million pounds. If drilling keeps delivering results like today’s announcement, a much larger resource is possible.

The US Needs Domestic Uranium Now

Here is the bigger picture. The United States imports more than 95 per cent of its uranium. That is a problem when nuclear power is making a comeback as a reliable, clean energy source. Tech giants like Microsoft and Amazon are signing deals with nuclear plants to power their data centres. Government policy is shifting in favour of domestic energy security.

American producers with proven resources stand to benefit from this shift. A company like American Uranium, with a quality project in a proven district, could find itself well-positioned as the US scrambles to secure local supply.

The Investor’s Takeaway for American Uranium

With a market capitalisation of approximately A$15.5 million, American Uranium offers significant leverage to exploration success. If the resource doubles as management hopes, the stock could re-rate sharply towards peer valuations. The H1 2026 mineral resource update and the subsequent revised scoping study are the key catalysts to watch.

That said, this remains a speculative, pre-production opportunity. The company needs continued drilling success to prove its thesis. There is no guarantee exploration targets will convert into mineable resources. Uranium prices can also swing sharply, even with the positive long-term outlook.

In our view, American Uranium is a speculative buy for investors comfortable with early-stage risk. The combination of a proven district, low-cost mining potential, and US supply urgency creates an attractive setup. Position sizing should reflect the uncertainty that comes with pre-production explorers. For those wanting ground-floor exposure to the uranium theme, this deserves a closer look. Conservative investors may prefer to wait for resource confirmation before stepping in.