The following is an excerpt from the "Company News"
section of Salman Partners' Metals Morning Note,
published on April 2nd, 2009.
Hathor
Exploration Ltd. (HAT – TSX-V - Cdn$1.87; Target Cdn$6.50; SPECULATIVE BUY)
85.3 M Shares Outstanding
Hathor's
Partner Commences Geophysics at the Highly Prospective Henday
Property
Recall that Hathor announced on March 3,
2008, that it had intersected 11.9 m of 5.29% U3O8
(uranium) in drill hole MWNE-08-12 within its newly named "Roughrider
Zone" on its 90%-owned Midwest NorthEast
uranium property (see the February 28, 2008 and March 4, 2008 Metals
Morning Note) in the Athabasca Basin of Saskatchewan. Subsequently, Hathor announced other highly encouraging drill results
from its 2008 winter and summer drilling programs at the Roughrider Zone. In
mid-September, Hathor completed its 5,296 m summer drill
program in which 11 out of 13 holes hit uranium mineralization. In January
2009, Hathor commenced its 22,000 m winter
drilling program at the Roughrider zone.
On March 2, 2009, Hathor announced that it
had entered into an option agreement with Forum Uranium Corp. (FDC –
TSX-v) for Forum's Henday uranium property (see
figure on the following page) which is located approximately 8 km north of Hathor's Midwest NorthEast
property, and is only 2 km
from AREVA's Mallen
Lake showing, where drill intercepts of 5.9% over 0.3 m have been reported
in basement rocks1 from previous drilling. Hathor
must spend Cdn$3.5 million over three years to earn a 60 percent interest in
the Henday project.
Yesterday, Hathor announced that its
partner, Forum Uranium, has commenced a geophysical survey program at the Henday project. The geophysics program is to consist of
ground electromagnetic and gravity surveys, which are among the best tools,
given that there is virtually no bedrock exposure, to use in looking for
unconformity-type uranium deposits in the Athabasca Basin.
Forum is to be looking for geological structures that strike (or trend)
from AREVA and Denison Mines Corp.'s (DML – TSX; Cdn$0.83;
SPECULATIVE BUY) Midwest and Midwest A
deposits, through Hathor's Roughrider Zone and
through the Henday property (see map on the
following page). The geophysics program should help Forum establish some
initial drilling targets.
We note that electromagnetic and gravity geophysics played a key
role in the discovery of the Roughrider Zone and that the Chief
Geophysicist for Forum, Mr. Phil Robertshaw,
happens also to be the Chief Geophysicist for Hathor.
We believe that Mr. Robertshaw is one of the most
adept geophysicists working in the Athabasca Basin.
We continue to believe, despite recent weakness in its share price, that Hathor has
discovered the next major uranium deposit to be found in the Athabasca Basin. While the uranium assay
results for first 16 holes from the current drilling program at the
Roughrider Zone were not as good as the market had expected, we note that
the company has, up to yesterday, drilled approximately 119 holes. We also
note that given that uranium deposits within the Athabasca Basin
tend to be irregular and discrete. We consider that the market has put too
much weight on the results so far of the current drilling program. We
believe that way more than 16 holes are needed to properly ascertain
whether the Roughrider Zone is the "real deal". We believe that
investors should wait for the drilling results for the 100 or so remaining
drill holes to appreciate Hathor's true
potential.
1 Uranium deposits in the Athabasca Basin occur either in leaky,
fractured and waterlogged sandstones or in the basement rocks beneath. Basement
rocks generally provide fewer mining problems than do the sandstones.
Click to view map
For the complete report visit the link below:
http://www.forumuranium.com/i/pdf/article_salman_2009-04-02.pdf (480kb)
About Forum Uranium
Forum Uranium Corp. is a Canadian-based energy company with a focus
on the acquisition, exploration and development of Canadian uranium
projects in the Athabasca Basin, Saskatchewan and the Thelon Basin,
Nunavut. Forum has assembled a highly experienced team of exploration
professionals with a track record of mine discoveries for
unconformity-style uranium deposits in Canada. The Company has a
strategy to discover near surface uranium deposits nearby existing
infrastructure by exploring on its 100% owned properties and through
strategic partnerships and joint ventures.