Hathor Exploration Limited

Hathor Exploration Limited

December 14, 2006 11:31 ET

Hathor Commences 3-D Seismic Survey at its Midwest NE Project in the Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 14, 2006) - Hathor Exploration Ltd. (TSX VENTURE:HAT). The geological setting of the eastern Athabasca Basin region of northern Saskatchewan accounts for approximately 28% of the world's annual mine production of uranium. All of this production comes from unconformity-style uranium ore deposits - the richest uranium ore deposits in the world.

Favourable lithostructural settings (ductile-brittle to brittle fault zones) that once carried and trapped uranium-rich fluids are one of the key geological factors that were required for the formation of this type of uranium deposit. Today, the best way to identify and define in detail these structural geochemical traps at depth is through the use of seismic exploration methods similar to what is used in the oil and gas industry.

Since 2003, Hathor Exploration Ltd., through its wholly-owned subsidiary Roughrider Uranium Corp., has become a leader in the application of innovative 2-D seismic methods to uranium exploration; having completed approximately 98 line kilometres of high-resolution reflection seismic surveys on its other Athabasca Basin properties. Significant complex structural zones have been observed in this seismic work performed to date, many of which will be targeted by future diamond drilling programs.

Hathor, on its 90%-owned Midwest Northeast uranium project, has now undertaken a monumental leap in its efforts to advance seismic techniques by initiating the first true high-resolution, 3-D reflection seismic survey to ever be undertaken in the Athabasca Basin.

The principle objectives of this 3D seismic survey will be: to provide a definitive map of structural features and the basin/basement unconformity; to enhance correlation efforts of previously identified regional north-northeast trending conductors with basement features; and to allow Hathor to better define prospective targets for diamond drilling. By better defining structural drill targets, Hathor will be able to implement significant cost savings in future drill programs.

Hathor's previous seismic surveys resulted from the demonstration of the effectiveness of seismic as an exploration tool by the Extech IV Athabasca Uranium Multidisciplinary Study. This comprehensive $7.5 million program was initiated in 2000 with funding from the Geological Survey of Canada, matched by cash and in-kind resources from the National Sciences and Engineering Research Council of Canada (NSERC), the geological surveys of Saskatchewan and Alberta, Cameco Corporation and AREVA Resources Canada Inc., with the participation of the universities of Saskatchewan, Laurentian, Alberta, and Regina. Its objectives were to enhance the geoscientific knowledge of the Athabasca Basin, to stimulate further mineral exploration and to develop new exploration methods for unconformity-style uranium deposits, thereby sustaining and enhancing the development of this world-class mining camp.

Initial Extech IV seismic studies included 8 km of high-resolution 2-D seismic profiles that were acquired in the P2 North deposit area at Cameco and AREVA's McArthur River Mine, the world's largest, high-grade uranium deposit with proven and probable reserves of 389 million pounds U3O8 contained in 727,000 tonnes grading 24.28%.

These initial Extech IV seismic images from the McArthur River mine area have now been further developed, refined and studied in considerably more detail via the 2006 Ph.D. thesis of Steve Gyorfi at the University of Saskatchewan under the supervision of Dr. Zoltan Hajnal and Dr. Irvine Annesley of the Saskatchewan Research Council.

At McArthur River, Gyorfi's seismic research clearly shows the unconformity between Archean and Paleoproterozoic basement rocks and the overlying Athabasca Group sandstones, and its offset by the P2 and other complex faults. In addition, the structural disruption caused by the P2 fault zone can be seen extending both into the overlying, altered Athabasca Group sandstones and deeply into the metamorphic basement complex. Pattern analysis of the seismic images conforms to drill-hole data sets and observed mine site geology. Gyorfi's McArthur River studies undoubtedly demonstrate the applicability of seismic methods to extend previous geological modeling and improve the geological framework for uranium exploration, as well as to directly image ore-related structures.

Hathor's previous seismic surveys were completed utilizing the field services of Kinetex Inc. of Calgary, Alberta and the processing capabilities and interpretive skills of the University of Saskatchewan's Seismology Laboratory. Kinetex, a subsidiary of TSX-V-listed FirstGrowth Capital Inc., has been contracted to perform all data gathering for the Midwest NE property 3-D survey and has mobilized a 30-man crew to the project.

Midwest NE seismic work will involve the collection of over 20 million seismic traces of high-frequency, "Digital 3 Component Full Wave" data imaging. Kinetex will utilize a radio telemetry-based Input/Output, advanced VectorSeis® technology, a newly-developed proprietary system that is state-of-the-art. This efficient, man-portable instrumentation allows for the collection of a large data set, with a minimal environmental footprint, while maintaining consistent, high-density coverage over the region.

The University of Saskatchewan and the Saskatchewan Research Council personnel will be instrumental in the analyses and interpretation of the seismic data and the use of the SRC's new 3-D Virtual Reality Centre will be of significant importance in picking drill targets.

Hathor's Midwest NE is located to the immediate northeast of the Midwest property of AREVA, Denison Mines Corp. and OURD Canada Co. Ltd., where mining of a shallow (about 200m depth) orebody that grades 5.47% U3O8, 4.37% nickel and 0.33% cobalt is slated to start in 2008. Saskatchewan Provincial Highway 905, which provides year-around access to the regional service centre at Points North Landing is about 5 km south of Hathor's property.

In addition to their Midwest deposit uranium resources, 2005 exploration drilling by AREVA, following up a late 1970's drill intersection of 8.24% U3O8 over 3.8 meters resulted in the discovery of the Mae Zone, approximately three kilometers northeast of the Midwest deposit and about 900 metres from Hathor's Midwest NE property.

AREVA's partner, Denison, has reported Mae Zone drill results including: 6.2% eU3O8 over 7.1 m; 11.7% eU3O8 over 7.7 m; 1.1% eU3O8 over 17.7 m; 9.5% eU3O8 over 7.2 m; 12.4% eU3O8 over 6.1 m; and 15.3% eU3O8 over 12.5 m. Regarding their Mae Zone discovery, at the April, 2006 shareholders meeting, Peter Farmer, President & CEO of Denison, stated:

"...as AREVA has informed us: This area is their best discovery in Saskatchewan, if not in the world, over the last several years."

Dr. Irvine Annesley of the Saskatchewan Research Council sees the ENE extension of the above-mentioned "Mae Zone" discovery as a primary target on the Midwest NE property, where the intersection of N30 degreesE with N70 degreesE and/or E-W structural lineaments are considered to be the prime locus for the deposition of uranium mineralization. The 3D seismic survey will be the primary tool to identify these structural geochemical traps and formulate new targets for diamond drilling, which is expected to start in February of 2007.

Hathor Exploration Limited

Stephen G. Stanley, Director

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Contact Information

  • Hathor Exploration Limited
    Stephen Stanley
    (604) 684-6707
    (604) 684-9277 (FAX)
    Website: www.hathor.ca