- The Athabasca Basin hosts the world’s highest grade uranium deposits and accounts for 23% of the world’s production. Hathor’s Midwest NE property is 90% owned by Hathor and totals 502 hectares (1,240 acres). The property is located approximately 4 km to the northeast of the Midwest uranium orebody of AREVA, Denison Mines Inc. and OURD Canada Co. Ltd. that grades 5.47% U3O8, 4.37% nickel and 0.33% cobalt. The property is also 900 metres to the northeast of the Midwest property Mae Zone discovery where Denison have reported recent drill results (following up a late 1970's drill intersection of 8.24% U3O8 over 3.8 meters) including: 6.2% U3O8 over 7.1 m; 11.7% U3O8 over 7.7 m; 1.1% U3O8 over 17.7 m; 9.5% U3O8 over 7.2 m; 12.4% U3O8 over 6.1 m; and 15.3% U3O8 over 12.5 metres.
- Hathor Exploration recently reported one of the best assay results to date, recording 11.23% U3O8 over 23 metresKeep in mind though, that the hole was basically an infill hole that improves upon nearby hole -34 (8.93 U3O8 over 6.5metres).
- Propinquity of Midwest NE to the McClean and Rabbit Lake mills and other deposits has the potential for sharing of infrastructure such as roads, power, water treatment and tailings facilities. [Proximity also has the added benefit of takeover potential]
- Talbot opines “Roughrider has intense alteration and polymetallic mineralogy. By-product credits could potentially improve economics. Although the zone occurs in the basement, its characteristics closely resemble the nearby Midwest unconformity deposit that hosts 40MM lb. Midwest displays a small keel mineralization within the basement - most of its value is found at the unconformity. Hoping for the same, future Hathor drilling will work to extend the zone towards the unconformity."
- Talbot also feels that Roughrider has significant growth potential since mineralization is open along its ~110m strike. He says “Delineation of high grade pods could add pounds quickly. Basement rocks below the unconformity (190 to 210m) are of superior rock quality than if located within the sandstone.”
- With next year's drill program - which is expected to ramp up in January 2009 with the help of 3 rigs and sufficient cash in the till, Talbot expects deposit delineation to improve significantly. He feels that "ice drilling would provide proper positioning and orientation and allow for tighter spacing. This should help trace higher grade pods and basement mineralization towards the unconformity - to help [investors] determine how large the Roughrider zone really is."
- Talbot estimates the Roughrider zone to potentially contain between 25 and 40 MM lbs of U3O8 at an average grade in the 4-5% range, similar to Midwest. With overlying sandstone alteration being both extensive and intensive, Talbot opines that geological complexity, multiple units of mineralization, poor drill angles and unknown ore density presently make this deposit difficult to evaluate. After visitng the site, Talbot writes that confirming continuity may require significant infill drilling.
- Talbot inititated coverage on Hathor Exploration (HAT: TSX-V) with a BUY recommendation, Specualtive Risk rating and a 12 month price target of C$5.00/sh.
|