Hathor Exploration Limited

Hathor Exploration Limited

September 20, 2011 07:00 ET

Hathor Intersects 27.0 m of 7.91 % U3O8, including 3.5 m of 41.77 % U3O8, As Far East Zone at Roughrider Continues to Surpass Expectations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2011) - Hathor Exploration Limited (TSX:HAT) ("Hathor" or the "Company") is pleased to provide a further update on the 2011 summer drill program at the Far East Zone of the Roughrider Uranium Deposit in the Athabasca Basin, with new data from 7 drill holes (MWNE-11-711 to 715, 717A, and 719; Figures 1 to 5; and Tables 1 and 2). Highlights from drill hole MWNE-11-715 include:

  • Composited interval of 27.0 m of 7.91% U3O8, including 3.5 m of 41.77 % U3O8
  • Combined drill hole GT (grade x thickness) of 215, the new highest GT on Far East, and the 12th highest GT of the nearly 400 drill holes completed on Roughrider so far.
Table 1: Composited Assay Data Highlights. Drill holes MWNE-11-711 to 715 and 717A are from the Far East Zone. Drill hole MWNE-11-719 is collared 300 m to the south.
DDH From To Grade Thickness GT
(m ) (m ) (U3O8 % ) (m )
MWNE-11-711 372.00 382.00 5.40 10.00 53.98
MWNE-11-712A 340.00 382.50 4.23 42.50 179.67
MWNE-11-713 406.00 410.50 5.33 4.50 23.97
MWNE-11-714 429.50 435.00 2.66 5.50 14.62
MWNE-11-715 354.50 381.50 7.91 27.00 213.57
Including 369.00 372.50 41.77 3.50
MWNE-11-717A 397.50 399.00 6.52 1.50 9.78
MWNE-11-719 385.00 386.00 0.07 1.00 0.07
GT – Grade x Thickness; Based on a cut-off of 0.05 % U3O8. All intervals are core lengths. Grade values are rounded to two decimal places. GT values have been calculated from original assay numbers which are listed to three decimal places.

Assays are pending for 2 drill holes from the Far East Zone, including MWNE-11-718, which intersected a total of 17.30 m of off-scale radioactivity; the greatest amount of off-scale radioactivity within a single drill hole at Far East. This radioactivity was intersected in two zones (Figure 3): one at a depth correlative with other drill hole intersections at Far East, and; one at a much shallower depth, only 45 m below the unconformity. The shallower zone presents significant potential for the discovery of an additional zone in the Roughrider system.

The Far East Zone continues to produce an intensity in mineralization and alteration that surpasses the Company's expectations (see photos in Figure 5). The zone is a material development in the overall mineral resource potential of the Roughrider Uranium Deposit. Furthermore, it is open both to the east along strike and southeast up-dip from the most pervasive alteration and replacement mineralization intersected to date, and the largest grade-thickness quotients from assays.

Mineralization at the Far East Zone is not included in the preliminary economic assessment ("PA") that was released on September 13, 2011, which provided summary estimates including C$1.0 billion for pre-tax Net Present Value and payback of 1.2 years, based on a US$70 uranium price and 7 % discount rate.

Table 1 above presents select composited assay data from the seven new drill holes. A complete list of composited assay data is provided in Table 2. Previous mineralized intersections from the Far East Zone are summarized in the Company's previous news releases dated July 26 and September 6, 2011.

The 3-D geological model for Far East Zone outlines an approximate geometry of 95 m (length) by 35 m (width), with an updated average thickness of 30.5 m. The updated weighted average grade and average grade of all assays received to date are 2.63 and 3.16 % U3O8, respectively (previously 2.25 and 2.90 % U3O8, respectively). Density measurements range from 1.97 to 5.04 g/cm3, with an average of 2.42 g/cm3 for 500 samples.

Mineralization between the East and Far East Zones is not included within the current outline of either zone. This represents further potential for the overall mineral resource of the Roughrider Uranium Deposit, as emphasized in the NI 43-101 compliant report completed for the East Zone in June, 2011 and filed on SEDAR.

Mineralization South of Roughrider

Drill hole MWNE-11-719, collared 300 m to the southeast of the Far East Zone, intersected 1.0 m of 0.07 % U3O8. The surface projection of this mineralization is approximately 170 m southeast of the Far East Zone (Figure 1). The area between drill hole 719 and the Far East Zone remains untested and represents a high priority target that will be tested during the winter 2012 exploration program. The target area presents significant potential for the discovery of an additional zone at Roughrider.

2011 Summer Program Summary

The 2011 summer drill program utilized two drill rigs for approximately nine weeks. A total of 9,600 metres were completed in 20 drill holes; 19 were at the Far East Zone. Figure 1 shows the spatial relationship of the three mineralized zones at the Roughrider Uranium Deposit (West, East, and Far East) with drill holes colour-coded on the basis of grade x thickness value (GT). Figure 2 shows the spatial distribution of drill holes at the Far East Zone, with drill holes colour-coded on the basis of GT value. Figure 3 is a cross section showing the spatial distribution of the main zone of mineralization and the upper zone of mineralization near the unconformity at Far East. Figure 4 is an updated cross section depicting Line 125E (±10 m). Figure 5 shows images of mineralization styles from the drill holes reported in this news release.

Sample Analysis and QAQC

All mineralized drill hole intersections are reported as down-hole intervals, not true thickness. True thicknesses are determined within the context of 3D geological models used for exploration and resource modeling.

Samples were chemically analyzed for U3O8 at the Geoanalytical Laboratories of the Saskatchewan Research Council (SRC). The facility operates in accordance with ISO/IEC 17025:2005 (CAN-P-4E). The samples were analyzed using ISO/IEC 17025:2005-accredited U3O8 method. The samples were analyzed for a suite of other base metal elements including nickel, cobalt, copper and lead by ICP-ES. Field and laboratory of select samples show good reproducibility.

Dry bulk density determinations were carried out by Hathor staff on the drill core.

Full details of the Company's QAQC program are documented in the NI 43-101 compliant report completed for the East Zone in June, 2011 and available on SEDAR.

Midwest Northeast Property

The Midwest Northeast Property ('the Property'), which contains the Roughrider Uranium Deposit, is located within the main uranium-producing eastern corridor of the Athabasca Basin. The Property comprises 3 mineral leases covering 598 ha. Infrastructure is excellent. The Property is connected to Highway 905 by a 6 km winter road. The property is 8.5 km north of Points North, the main service hub, including airport, for northeastern Saskatchewan. The Property is within 25 km of operating uranium mine, mill and tailings facilities established at Rabbit Lake and McClean Lake during the past 35 years of production in the Athabasca.

Subsequent to the successful acquisition of Terra Ventures Inc. (see news release dated August 5, 2011), Hathor owns 100 % of the Property and the Roughrider Uranium Deposit.

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.

Rejection of 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 (the "Offer"). Hathor's closing share price on the TSX on Monday, September 19, was C$4.02.

The Board of Directors of Hathor, in consultation with its legal and financial advisors, has determined the Offer to be inadequate. The Company continues to urge its shareholders not to tender their shares in Hathor to the Offer. The Offer does not reflect the strong economic parameters for Roughrider, it does not take into account the mineralization and mineral resource potential at the Far East Zone, it does not capture the scarcity value of quality projects like Roughrider in comparison to other available undeveloped uranium deposits around the world, nor does it account for the strategic value based on Roughrider's location in the preeminent uranium mining district in the western world, and it does not give any value to Hathor's exploration properties.

Hathor's Board of Directors is considering a variety of options in response to the Offer. Prior to the Offer, Hathor was, and continues to be, in active dialogue with a number of other major mining companies, and end-user utilities in the down-stream part of the fuel cycle, about their potential interest in Hathor. The process will be vigorously pursued and the Board will communicate further with Hathor shareholders on a timely basis prior to the Expiry Time of the Offer.

For more details of the reasons for the Board's recommendation to reject the Offer, refer to the Directors' Circular of the Board dated September 13, 2011 available on SEDAR and on Hathor's website.

How to Withdraw Tendered Hathor Shares

To reject the Offer, you should do nothing. The Offer is open for acceptance until October 31, 2011. Shareholders who have already tendered their Hathor Shares to the Offer can withdraw them at any time before they have been taken up and accepted for payment by Cameco. Shareholders holding shares through a dealer, broker or other nominee should contact such dealer, broker or nominee to withdraw their Hathor Shares.

Shareholders can contact the information agent retained by Hathor, Phoenix Advisory Partners, North America toll free at 1-800-243-1162, or banks, brokers and collect calls outside North America can call 1-201-806-2222 or via email at inquiries@phoenixadvisorypartners.com.

For more information on Hathor, please visit the Company's website at www.hathor.ca.

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.

Table 2: Complete Composited Assay Data for Holes in this Release.
GT – Grade x Thickness; Based on a cut-off of 0.05 % U3O8. All intervals are core lengths.
DDH From To Grade Thickness GT
(m ) (m ) (U3O8% ) (m )
MWNE-11-711 226.50 228.00 0.31 1.50 0.47
MWNE-11-711 231.00 231.50 0.50 0.06 0.03
MWNE-11-711 232.00 232.50 0.50 0.06 0.03
MWNE-11-711 337.50 339.00 0.23 1.50 0.35
MWNE-11-711 341.50 344.00 0.15 2.50 0.37
MWNE-11-711 364.50 365.00 0.06 0.50 0.03
MWNE-11-711 372.00 382.00 5.40 10.00 54.00
comprising 372.00 374.50 3.18 2.50 7.94
comprising 374.50 376.50 < 0.01 2.00 0.01
comprising 376.50 382.00 8.37 5.50 46.03
MWNE-11-711 394.00 396.00 0.13 2.00 0.26
MWNE-11-711 408.00 408.50 0.10 0.50 0.05
MWNE-11-711 413.00 413.50 0.34 0.50 0.17
MWNE-11-711 420.00 421.00 0.24 1.00 0.24
MWNE-11-711 423.50 427.50 0.11 4.00 0.43
MWNE-11-712A 340.00 382.50 4.23 42.50 179.78
comprising 340.00 347.00 1.12 7.00 7.81
comprising 347.00 349.50 0.01 2.50 0.03
comprising 349.50 382.50 5.21 33.00 171.83
including 365.50 371.50 17.09 6.00 102.55
MWNE-11-712A 390.00 393.00 0.21 3.00 0.62
MWNE-11-712A 414.50 415.00 0.56 0.50 0.28
MWNE-11-713 406.00 410.50 5.33 4.50 23.97
MWNE-11-713 415.00 415.50 0.06 0.50 0.03
MWNE-11-713 419.00 420.00 0.37 1.00 0.37
MWNE-11-713 423.00 424.50 1.98 1.50 2.96
MWNE-11-714 241.00 247.00 0.34 6.00 2.04
MWNE-11-714 249.00 251.00 0.43 2.00 0.87
MWNE-11-714 332.50 337.00 0.25 4.50 1.13
MWNE-11-714 421.50 422.00 0.26 0.50 0.13
MWNE-11-714 429.50 435.00 2.66 5.50 14.62
MWNE-11-714 443.00 444.00 0.52 1.00 0.52
MWNE-11-714 452.00 452.50 0.07 0.50 0.03
MWNE-11-715 223.00 223.50 0.05 0.50 0.03
MWNE-11-715 333.00 333.50 0.15 0.50 0.07
MWNE-11-715 354.50 381.50 7.91 27.00 213.57
comprising 354.50 361.00 8.38 6.50 54.49
comprising 361.00 365.50 < 0.01 4.50 0.04
comprising 365.50 376.00 14.72 10.50 154.55
including 369.00 372.50 41.77 3.50 146.21
comprising 376.00 379.00 < 0.01 3.00 0.02
comprising 379.00 381.50 1.74 2.50 4.35
MWNE-11-715 396.00 397.00 0.58 1.00 0.58
MWNE-11-715 417.00 419.50 0.39 2.50 0.98
MWNE-11-715 421.50 422.00 0.31 0.50 0.15
MWNE-11-715 424.00 424.50 0.08 0.50 0.04
MWNE-11-717A 360.50 362.00 0.16 1.50 0.23
MWNE-11-717A 384.50 386.50 2.00 2.00 4.00
MWNE-11-717A 397.50 399.00 4.35 1.50 6.52
MWNE-11-719 385.00 386.00 0.07 1.00 0.07

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/hat920f1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/hat920f2.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/hat920f3.pdf.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/hat920f4.pdf.

To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/hat920f5.pdf.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Hathor Exploration Limited
    Tony Nunziata

    Hathor Exploration Limited
    Kelsea Murray