Hathor Exploration comes up with its new economic
resource estimate today and we are a little bit shocked
that “the HAT” isn’t significantly higher.
We’ve counted on Eric Zaunscherb of Canaccord to
update us on this story, one that he has loved over the
last while, but instead let’s go to other analysts as
David Talbot at Dundee Capital has upped his target to
$4.75 and his points are the same as Zaunscherb’s as it
is one of the richest uranium plays out there and we
suspect sooner or later is a take-over target.
David Talbot of Dundee writes today, “A high grade
core totals 24 MM lbs grading 11.7% U3O8 as Roughrider
increases to 27.8 MM lbs. This high grade core
may now represent the fourth highest grade deposit in
the Athabasca after McArthur River, Cigar Lake and
Wheeler River. We are impressed with the high grade
portion of Hathor's 90% owned Roughrider deposit and
overall size at this stage of exploration. This is a robust
system and various resource estimation methods come
out essentially equal, providing us a good level of comfort.
A large number of high grade assays on almost
every section makes the resource insensitive to cut-off
grades and the population is sufficient that top cuts
were not required by SRK. Today's news exceeded our
expectations - we had expected ~20-22 MM lbs at a
grade of between 4-5% U3O8.”
Talbot adds, “We estimate potential to exceed 53 MM
lbs U308.” He continues, “Roughrider East was not
included but we estimate that zone may already exceed
20 MM lbs. An extensive 15,000 metre winter drill program
will focus on Roughrider East and filling the gap
between it and Roughrider. We expect further assays
next week, block models and geostatistics to then start.
An initial Roughrider East or perhaps a global resource
may be expected in the spring.”