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.
----------------------------------------------------------------------------
From To Grade Thickness
DDH (m) (m) (U3O8 %) (m) GT
----------------------------------------------------------------------------
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.
----------------------------------------------------------------------------
From To Grade Thickness
DDH (m) (m) (U3O8%) (m) GT
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 less than
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 less than
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 less than
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.
Contacts: Hathor Exploration Limited Tony Nunziata 403-560-7040
Hathor Exploration Limited Kelsea Murray 604-684-6707
www.hathor.ca