Hathor Exploration Limited

Hathor Exploration Limited

April 15, 2011 08:31 ET

Hathor Provides Update on Russell Lake Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2011) -Hathor Exploration Limited (TSX:HAT) is pleased to provide an update on its Russell Lake exploration program in the southeastern part of the Athabasca Basin in northern Saskatchewan.

Ground geophysics and first-pass diamond drilling were completed during the recent winter 2011 surface exploration program at Russell Lake (Figure 3). Details are provided below. Continued exploration on the property this summer will be planned and announced following a full compilation of all geophysical, geological and geochemical data from this program.

Diamond Drilling

Twelve (12) diamond drill holes were completed for 6780.6 m, with nine (9) drilled on the Fox Lake Trail Grid (Figure 4) and three drilled on the Christie Lake Grid (Figure 5). One drill hole in each area was abandoned before reaching the unconformity because of bad ground conditions.

While no material uranium mineralization was intersected in any drill hole, elevated radioactivity and local trace to weak uranium mineralization was intersected in several drill holes. Highlights include:

  • FLT-11-14 returned 0.054 % U3O8 over 0.3 m at 516.9 m from a fractured interval of weakly graphitic pelitic gneiss. Previous drill holes in the Fox Lake Area have also intersected fracture-hosted mineralization: FLT-08-06 intersected 0.11 % U3O8 over 0.5 m and FLT-08-05 intersected 0.065 % U3O8 over 0.3 m).

  • CL-11-08 returned 0.024 % U3O8 over 0.2 m at 406.6 m from a hematized breccia that is interpreted to be the up-dip extension of mineralization previously intersected in drill hole CL-10-03 from the Fall 2010 drill program.

Drilling at Fox Lake confirms similar geology as that seen at the nearby Phoenix Deposit (12.5 km SW) and the world-class McArthur River deposit located 22 km to the northeast. Most importantly, drilling confirmed the presence of a thick footwall quartzite overlain by Wollaston Group metasediments, including graphitic pelitic gneiss. Further, drill holes in both the Fox and Christie Lake targets intersected wide (up to 190 m in core length) zones of faulting and structural disturbance within the sandstone and basement rocks.

Intense bleaching of the overlying Athabasca Group sandstone occurs in both grid areas. It is accompanied by local sandstone desilicification and silicification, and sooty pyrite alteration. Further, a hematite and clay alteration corridor is defined by several drill holes at Fox Lake.

Ground Geophysics

  • Ground gravity surfaces were completed over 3 grids: Key Lake Grid, Grayling East and Grayling West.

  • Key Lake survey (137.5 line-km with 2710 data stations) identified a 4.0 km long NE to ENE oriented, strong gravity low that is at the apex of a magnetic-interpreted granitic dome; a similar geologic setting to Key Lake deposits.

  • Grayling East survey (59.3 line-km with 1233 data stations) identified a E to NE curving gravity low trend that correlates well with previously identified conductors and resistivity-low trends. These form an untested 200 – 600 m wide corridor that is sub-parallel to the Grayling Zone, where historic drilling intersected uranium mineralization including 3.45% U3O8 over 0.3 m and 0.4% U3O8 over 3.75 m.

  • Grayling West surveys (34.3 line-km with 712 data stations) identified the extension of a N-S fault system that is cross-cut by a number of E-W and NE-SW oriented gravity lows.

Property Description and Context

The Russell Lake Project covers both of the properties historically referred to as Russell Lake and South Russell. Combined, the properties cover approximately 71,670 ha in one contiguous block of 23 claims. Hathor controls 100% of the Russell Lake property (45,742 ha), following the successful acquisition of Northern Continental Resources (see News Release dated November 23, 2009). Terra Ventures Inc. owns a qualified 8% interest in 6 of the 8 claims on the South Russell property, carried to the completion of a positive feasibility study and announcement of intent for commercial production.

The Russell Lake property is located within the Wollaston-Mudjatic magnetic low transition zone, commonly referred to as eastern corridor of the Athabasca Basin (Figure 1). The greatest endowment of proven resources for future production within the Athabasca is within the eastern corridor, in the region immediately surrounding Russell Lake (Figure 2). 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 Phoenix deposit, now estimated at 39 M lbs by Denison Mines/Cameco/JCU, is immediately west of the central part of the Russell Lake property (Figure 2).

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 VP of Exploration with responsibility for all of Hathor's exploration in Saskatchewan, and Michael Gunning, Ph.D., P.Geo, Hathor's Chief Executive Officer, are Qualified Persons as defined by National Instrument 43-101 and have reviewed and approved the technical disclosure contained in this news release.

On Behalf of the Board of Directors

Michael H. Gunning, PhD, PGeo, President & CEO

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.

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

Contact Information

  • Hathor Exploration Limited
    Tony Nunziata

    Hathor Exploration Limited
    Kelsea Murray