Hathor Exploration Limited

Hathor Exploration Limited

July 26, 2011 07:00 ET

Hathor Intersects 52 m at 2.40% U3O8, Including 9.5 m at 5.61% U3O8 and Confirms Potential for Far East Zone as Roughrider Drilling Continues

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2011) - Hathor Exploration Limited (HAT:TSX) is pleased to announce assay results from drill hole MWNE-11-700, the first complete set of drill hole assays received from the ongoing 2011 summer drill program at the Company's Roughrider project in the Athabasca Basin, Saskatchewan. Based on the success of drilling to date, the program, originally planned for 7,500 m to be completed over six weeks, has been extended to target 10,000 metres and is anticipated to be completed by early August.

Drill hole MWNE-11-700 has intersected significant new uranium mineralization at Far East. The main intersection composites 51.5 m at 2.4% U3O8, comprising three lenses of mineralization separated by two narrow zones of altered but unmineralized rock. Summary assays are below:

DDH Lens From (m) To (m) Interval (m) U3O8 (%)
MWNE-11-700 Composite 341 392.5 51.5 2.40
comprising 1 341 365 24 0.74
comprising Barren 365 367 2 <0.01
comprising 2 367 380 13 4.01
comprising Barren 380 383 3 <0.01
comprising 3 383 392.5 9.5 5.61
Individual zones were composited using a maximum internal dilution width of 1.5 m, based on a cut-off of 0.05% U3O8. All intervals are core lengths.

Alistair McCready, VP Exploration at Hathor, emphasizes that, "It is worth remembering the grade-thickness number for this hole is of the same calibre as drill hole MWNE-08-12, the discovery hole at West Zone in 2008. Some two and a half years after the discovery hole, the Roughrider deposit continues to produce evidence for a large and vigorous hydrothermal system."

Below is a select list of drill hole intersections completed to date from Far East.

MWNE-11-700: 51.5 m at 2.40% U3O8 123.6 GT
incl. 13.0 m at 4.01% U3O8
MWNE-11-698: 42.8 m at 3.26% U3O8 139.5 GT
incl. 6.5 m at 10.47% U3O8
MWNE-11-687: 45.5 m at 2.05% U3O8 93.3 GT
MWNE-11-683: 40.5 m at 1.12% U3O8 45.4 GT
MWNE-11-692A: 21.0 m at 3.42% U3O8 71.8 GT
and 4.0 m at 5.00% U3O8 20.0 GT
MWNE-11-667: 37.5 m at 1.57% U3O8 58.9 GT
MWNE-11-694: 51.0 m at 1.69% U3O8 86.2 GT
MWNE-11-696: 12.7 m at 3.10% U3O8 39.4 GT
* All drill holes are vertical, all intervals are core lengths. GT = grade * thickness

Hathor is also pleased to provide an update on the overall summer drill program. A total of 12 drill holes have been completed, including MWNE-11-700. All drill holes have intersected variable amounts of anomalous radioactivity (>500 cps), and nine have intersected more than 1 m of combined off-scale radioactivity (>9999 cps). A summary of anomalous radioactivity is provided in Table 1, and complete down-hole radiometric data are provided in Table 2 and are available on the Company's website at www.hathor.ca.

The Far East Zone is the focus of all drilling during the 2011 summer program. Figure 1 shows the spatial relationship of the three zones currently delineated for the Roughrider uranium deposit. Figure 2 is a plan map which shows the location of drill holes completed to date on the Far East grid, and Figure 3 is a cross section along Line 120 E, which shows the drill hole MWNE-11-700 intersection.

The Far East Zone was discovered in February, 2011, and remains open to the south and east. Resource estimates for West and East zones were released on November 30, 2010 and May 17, 2011, respectively, and are available on SEDAR. Attributes of the Far East Zone include:

  • Outline of Far East defined by continuous mineralization amongst 20 drill holes.

  • The surface trace of Far East extends for 70 m along a north easterly strike.

  • The dip of Far East is moderate to the north-northeast.

  • Mineralized intersections are broad and commonly exceed 40 m in core length.

  • Mineral zones are basement hosted and start approximately 150 m below the unconformity.

The Roughrider hydrothermal system remains robust and dynamic at Far East. Attributes include:

  • Replacement by massive and semi-massive pitchblende mineralization (Figure 4 and Figure 5).

  • Dynamic structural remobilization of basement-hosted mineralization (Figure 6).

  • Clay and hematite alteration is pervasive throughout the composite intervals (Figure 7).

As summarized by Dr. Michael Gunning, President and CEO at Hathor, "It is suffice to say that results from Far East continue to surpass our expectations. The grade-thickness attributes, the continuity of mineralization from hole to hole, the occurrence of locally massive mineralization, and the extent of clay and hematite alteration at Far East provide evidence for a hydrothermal system at Roughrider that is more extensive than first thought, one capable of intense replacement-style mineralization over more than 200 metres vertically and some 600 metres laterally. Indeed, Roughrider is proving to be an extremely robust system, above average even by Athabasca Basin standards."

Midwest Northeast Property

The Midwest Northeast Property 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 the infrastructure centre of Points North and the Points North commercial airport, the main service hub 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.

Terra Ventures Inc. owns a qualified 10% interest in the largest claim on the Property, carried to the completion of a positive feasibility study and announcement of intent for commercial production. Terra and Hathor recently announced (May 9, 2011) a definitive Plan of Arrangement, which remains subject to a number of conditions including, but not limited to, receipt of all regulatory, court and shareholder approvals, and would result in consolidation of 100% ownership of the Roughrider uranium deposit. The meeting date for the Terra shareholder vote is set for August 2, 2011.

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

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 1: Summary of Anomalous Radioactivity.
Zone of Anomalous
(>500 cps)
DDH From (m) To (m) Interval
Combined Offscale

(>9,999 cps)
MWNE-11-701B 329.9 392.2 62.30 6.30 m
335.1 353.1 18.00 2.50 m
MWNE-11-702 311.7 315.5 3.80
320.8 324 3.20
336 369.7 33.70 6.85 m
MWNE-11-703 382.5 385 2.50
354.55 371.55 17.00 1.40 m
MWNE-11-704 378 383 5.00
MWNE-11-705 365.2 369.2 4.00 0.00 m
MWNE-11-706 325.6 326.2 0.60 0.30 m
343.4 385 41.60 6.50 m
MWNE-11-707 392.6 404.95 12.35
MWNE-11-708 321.1 321.5 0.40 0.25 m
340.5 361.6 21.10 4.40 m
MWNE-11-709 434.8 436.4 1.60
332.5 381 48.50 7.85 m
MWNE-11-710 383.5 390 6.50
395.9 398.7 2.80
MWNE-11-711 372 381.4 9.40 1.80 m
*All intervals are core lengths. The zone of anomalous radioactivity may contain zones of background radioactivity. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of radioactive materials.

To view Figures 1-7, please visit the following link: http://media3.marketwire.com/docs/hat-0726-figures1-7.pdf

To view Table 2, please visit the following link: http://media3.marketwire.com/docs/hat-0726-table2.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.

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    Hathor Exploration Limited
    Kelsea Murray