Hathor Exploration Limited

Hathor Exploration Limited

September 08, 2011 07:00 ET

Hathor Exploration Limited: Drilling Underway at Russell Lake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2011) - Hathor Exploration Limited (TSX:HAT) is pleased to announce that diamond drilling is underway at its Russell Lake project in the southeastern part of the Athabasca Basin in northern Saskatchewan. Drilling will focus on the untested M Zone Extension (MZE) target located in the northwest of the project area. Up to 3,500 m of diamond drilling is planned. The 2011 summer program started in July with ground geophysics.

The size and location of the Russell Lake project, coupled with the number and quality of integrated exploration targets identifies the unique potential of the Russell Lake project; it is a long term exploration target for Hathor.

Diamond Drilling

Drilling will be carried out in the northwestern part of the Russell Lake property targeting the untested MZE target area. Figure 1 shows the location of the Russell Lake project within the eastern corridor of the Athabasca Basin, where all current Canadian uranium production occurs. Figure 2 shows the location of the MZE target within the Russell Lake property. Figure 3 shows the extent of the ground geophysical surveys carried out during 2010 and 2011. Figure 4 illustrates the drill holes planned for the MZE target area for this program. Figure 5 is a pseudo-section along a planned drill fence at MZE, based on resistivity data.

The MZE target area is located at the intersection of prominent 030° and 070° lineaments, favourable for unconformity-type uranium deposits. Based on current data, the MZE target area is along the NE strike extension of the structures controlling the M Zone, which is adjacent to the recently discovered Phoenix deposit on the Wheeler River property to our west. Drill targets at MZE integrate a wide range of data, including a Transient magnetotelluric survey (AMT) completed last fall totalling 26.8 line-km on 12 lines.

Ground Geophysics

The entire Russell Lake property is covered by numerous airborne geophysical surveys, augmented locally by ground geophysics, including gravity, resistivity, electromagnetic, and AMT surveys.

In addition to the AMT geophysical surveys carried out in the MZE and Fox Lake target areas in the fall of 2010 (see news release September 30, 2010), additional AMT surveys were carried during June and July of 2011 to expand and link the surveys areas. A total of 26.8 line-km on 12 lines of data were collected. These data are currently being modelled and interpreted, and will be incorporated into future drill targeting plans.

Regional Context

Please visit the Company's website at www.hathor.ca for a related set of regional-scale geological and geophysical maps for the Russell Lake property.

The Russell Lake property is within the Wollaston-Mudjatic magnetic low transition zone, commonly referred to as eastern corridor of the Athabasca Basin. This corridor accounts for 100% of current uranium production in Canada, and it has consistently contributed between 20 and 30% of global primary uranium supply for the past 30 years. Looking forward, the greatest endowment of proven resources for future production within the Athabasca is within the eastern corridor, in the region immediately surrounding Russell Lake. The south end of the property is 15 km northeast of the Key Lake mine/mill complex. The northern end is 12 km southeast of the McArthur River mine. The neighbouring Phoenix deposit is immediately west of the central part of the Russell Lake property.

Drill targets at the Russell Lake project are based on the integration of recent geophysical surveys, updated regional geological surveys, and synthesis of historical work, as summarized on the Company's website at www.hathor.ca. The Property is vastly underexplored and has seen little previous drilling relative to surrounding areas.

Property Description

The Russell Project covers both of the properties historically referred to as Russell Lake and South Russell prior to the acquisition by Hathor of Northern Continental Resources in 2009. Combined, the properties cover approximately 71,670 ha in one contiguous block of 23 claims. Subsequent to the successful acquisition of Terra Ventures Inc. (see news release dated August 5, 2011), Hathor owns 100% of the entire Russell Lake property.

Russell Lake has excellent infrastructure. The McArthur River - Key Lake haul road and associated power line run along the western margin of the property. The exploration camp is road-accessible all year round.

Alistair McCready, Ph.D., P.Geo., Hathor's V.P. Exploration, and Michael Gunning, Ph.D., P.Geo., Hathor's President & Chief Executive Officer, are Qualified Persons as defined by National Instrument 43-101 and have reviewed and approved the technical disclosures in this news release.

Continued No Action to Cameco's Hostile and Predatory Offer

On August 30, 2011 Cameco Corporation made an unsolicited all cash take-over bid offer for Hathor at a price per Hathor common share of C$3.75. Hathor's closing share price on the TSX on Wednesday, September 7, the last day of trading before this news release, was C$4.19.

The Board of Directors of Hathor, together with its legal and financial advisors, is assessing Cameco's offer. The Company continues to urge its shareholders not to respond to the Cameco offer until the Company has formally responded to the offer and makes available to shareholders information on the economic parameters for Roughrider, continued assays from the recently completed drill program at Far East Zone, and also insights into the strategic nature of the Athabasca Basin in the global uranium industry and how that relates to the value of the Roughrider uranium deposit.

Hathor will formally respond to the Cameco offer no later than September 14th, 2011.

Dr. Michael H. Gunning, President & CEO

Hathor Exploration Limited

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information concerns Hathor's anticipated operations in future periods, planned exploration and development of its properties, and plans related to its business and other matters that may occur in the future. This information relates to analyses and other information that is based on expectations of future performance and planned work programs. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if a mineral property is developed. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation: exploration hazards and risks; risks related to exploration and development of natural resource properties; uncertainty in Hathor's ability to obtain funding; precious and base metal price fluctuations; recent market events and conditions; risks related to the uncertainty of mineral resource calculations and the inclusion of inferred mineral resources in economic estimation; risks related to governmental regulations; risks related to obtaining necessary licenses and permits; risks related to Hathor's business being subject to environmental laws and regulations; risks related to Hathor's mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to competition from larger companies with greater financial and technical resources; risks relating to Hathor's inability to meet its financial obligations under agreements to which it is a party; ability to recruit and retain qualified personnel; and risks related to Hathor's directors and officers becoming associated with other natural resource companies which may give rise to conflicts of interests.

This list is not exhaustive of the factors that may affect Hathor's forward-looking information. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. Hathor's forward-looking information is based on the reasonable beliefs, expectations and opinions of management on the date the statements are made and Hathor does not assume any obligation to update forward-looking information if circumstances or management's beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking information. For a complete discussion, please refer to Hathor's Annual Information Form and unaudited financial statements and MD&A for its most recently completed financial year on SEDAR at www.sedar.com.

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Contact Information

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    Hathor Exploration Limited
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