UPDATE: Hathor Exploration Closer To Yr Highs as Provides Update on Roughrider Uranium Deposit
Hathor Exploration Limited (HAT.TO) edged closer to a year high $4.21 early Tuesday after announcing summary results of a preliminary economic assessment conducted for the Roughrider Uranium Deposit, located in the Athabasca Basin of Northern Saskatchewan. The PA includes the West and East Zones; it does not include the Far East Zone.
Hathor said economic analyses for a stand-alone mine and mill operation were run under three different uranium price scenarios. Based on the US$70/lb uranium scenario, the pre-tax Net Present Value for Roughrider, is approximately $1 billion, with an internal rate of return of 38% and payback of 1.2 years, using a discount rate of 7% and an exchange rate of $1.05:US$1.00. The undiscounted pre-tax NPV is $2 billion over an estimated 11 year mine life, based on 5 million pounds U3O8 per year mill output, generating a total mine and mill production cost of $14.44/lb U3O8. "The low cost of production is mainly a function of the low daily milling rate of about 200 tonnes per day, itself a function of the compact and high grade and minimal separation of the West and East zones, high metallurgical recovery (97.7%), and shallow depth," it said.
Hathor said these results may be further enhanced by the addition of mineralization discovered at the Far East Zone adjacent to the East Zone. The Far East Zone has grown rapidly since its discovery in February 2011 and remains open.