Hathor doubles size of Roughrider deposit

The first resource estimate for the East Zone of the Roughrider uranium deposit in Saskatchewan’s Athabasca Basin doubles the overall size of the deposit, Hathor Exploration (HAT-T) reports.

Inferred resources for the East Zone of the deposit stand at 118,000 tonnes grading 11.58% U₃0₈ for 30.1 million lbs. contained uranium. The resource estimate was reported at a 0.4% U₃0₈ cutoff grade based on an underground mining scenario, a 98% metallurgical recovery rate and a metal price of US$80 per lb. U₃0₈. The current spot price for uranium oxide is US$57 per lb.

Roughrider’s West Zone currently has indicated resources at the same cutoff grade of 394,200 tonnes of 1.98% U₃0₈ for contained uranium of 17.21 million lbs. uranium, and inferred resources of 43,600 tonnes of 11.03% U₃0₈ for 10.6 million lbs. of contained uranium oxide.

The maiden resource for the East Zone is based on 21 holes drilled between September 2009 and September 2010. Hathor notes that the East Zone is a series of stacked, parallel lenses that dip moderately to the northeast. And unlike the West Zone, it says, the mineral lenses are not uniformly mantled by a rim of low-grade mineralization.

Hathor acquired Roughrider Uranium in 2006, started drilling the Midwest Northeast property (the main uranium-producing eastern corridor of the Athabasca basin) in 2007, and discovered the Roughrider West Zone in 2008 and the East Zone in 2009. The East Zone is centred within four zones currently identified at Roughrider.

So far the junior has drilled over 100,000 metres and 300 holes.

In June 2010, the company reported recovery levels of up to 98.9% from metallurgical leach tests.

Roughrider is 8.5 km north of the community of Points North and the Points North commercial airport, the main service hub for northeastern Saskatchewan. It is 6 km by winter road from Highway 955.

At presstime, Hathor was trading at $2.50 per share and has traded over the last year between a low of $1.35 (May 21, 2010) and a high of $3.57 (Dec. 6, 2010). The junior has 108.7 million shares outstanding.