Hathor Exploration Limited

Hathor Exploration Limited

March 19, 2007 09:28 ET

Hathor Commences Drilling at Midwest NE Uranium Project, Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 19, 2007) - Hathor Exploration Limited (TSX VENTURE:HAT) is pleased to announce that it has commenced the first-phase of diamond drilling on its 90%-owned Midwest NE uranium project located in the eastern Athabasca Basin region of northern Saskatchewan.

"The start of drilling at the Midwest Northeast project is a significant milestone for Hathor as it is the first of our ten Athabasca area properties to be drilled by us." remarked Hathor's President, Stephen Stanley. "With the price of U3O8 reaching US$90 per pound, Hathor plans to be the most aggressive junior company exploring for uranium in Saskatchewan. We should start drilling on at least four of our projects by the end of the year, and, other than for spring break-up and winter freeze-up, we plan to keep at least one drill turning for quite some time."

Boart Longyear Inc., a global drilling company that is also the primary drill services provider for both Cameco Corporation and AREVA Resources Canada Inc. in Saskatchewan, has been contracted to drill fifteen holes totaling about 5,000 metres at Midwest NE. Proximity to the regional service centre at Points North Landing and Saskatchewan Highway 905, which is about five km south of the Midwest NE property, will allow for year-around drilling.

The geological setting of the eastern Athabasca basin region of Northern Saskatchewan hosts the richest uranium ore deposits in the world and accounts for approximately 28 per cent of the world's annual mine production of uranium. 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 genesis 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 has become a leader in the high-tech application of innovative seismic methods to uranium exploration. At Midwest NE, through the field services of Kinetex Inc., a subsidiary of First Growth Capital Inc. (TSX VENTURE:FGC), Hathor recently completed data acquisition for the first true high-resolution, 3-D reflection seismic survey to ever be undertaken in the Athabasca basin. The principal objectives of this survey were: to provide a definitive map of structural features and the basin/basement unconformity (approximate depth of 200 m); to enhance correlation efforts of previously identified regional north-northeast- and northeast-trending conductors with basement features; and to better define structural geochemical traps, the prime locus for the deposition of uranium mineralization, as prospective targets for drilling. By better defining structural drill targets, Hathor should be able to implement significant cost savings in its drill programs.

Midwest NE drill holes are targeted on structural features that are believed to be the ENE extension of the 2005 Mae Zone discovery, located about 900 metres from Hathor's Midwest NE property on the adjacent Midwest property of AREVA, Denison Mines Corp. and OURD Canada Co. Ltd. Regarding its Mae Zone discovery, at their April, 2006, shareholders meeting, Peter Farmer, president and chief executive officer 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." Denison has reported Mae Zone drill results including: 6.2 percent eU3O8 over 7.1 m; 11.7 percent eU3O8 over 7.7 m; 1.1 percent eU3O8 over 17.7 m; 9.5 per cent eU3O8 over 7.2 m; 12.4 percent eU3O8 over 6.1 m; and 15.3 percent eU3O8 over 12.5 m.

Hathor's Midwest NE 3D seismic program involved the collection of about 20 million seismic traces of high-frequency, "Digital 3-Component Full Wave" data imaging. Preliminary analysis of this data using the processing capabilities and interpretive skills of the University of Saskatchewan's seismology laboratory and the Saskatchewan Research Council ("SRC") shows the unconformity varying from moderately well-defined to highly broken up and breached. As well, the preliminary processed 2D seismic stacks from the 3D survey show WNW and NNW dips, respectively, on major NNE- and ENE-trending crustal structures within the southern part of the property. In contrast, on the northern part of the property, the major NNE- and ENE-trending crustal structures show ESE and SSE dips. Also notable, IKONOS satellite imagery, aeromagnetic and seismic data all show that the outline of the lake on the eastern side of the property appears to be controlled by reactivated basement features, some of which will be tested in this first-phase of drilling.

Drilling at Midwest NE is conducted under the supervision of Dr. Irvine R. Annesley, P.Geo., of the Saskatchewan Research Council. Samples collected for geochemical analysis will be sent to the SRC's Geoanayltical Laboratories in Saskatoon. This facility has been providing quality uranium analysis for over 35 years and employs ISO/IEC 17025:2005 certified quality assurance and quality control practices.

Pursuant to the company's stock option plan, Hathor will grant incentive stock options to purchase a total of 1,000,000 shares in the capital of the company at an exercise price of $1.70 per share for a period of five years.

For more information on Hathor, its subsidiary Roughrider Uranium Corp. and their ten Athabasca projects, please visit the company's website: www.hathor.ca.

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)