I attended the Cambridge Conference in Montreal and had a good chance to talk in detail with Tony Nunziata and go over latest results and anticipated coming news.
43-101 left out a lot of the resource discovered to date and came out 20% higher than estimated 10 m/lbs. In fact the S/E hole wasn't even included while others we cutoff on the upside at 30% and 50%. That left out some significant poundage.
43-101 pointed out that there are significant areas that need infil drilling, some of which was done this summer and no doubt - more will be in the plans for this winter. So the next NR with assays will add further to the resource estimate and the orebody will continue to grow.
43-101 - obviously - cannot and shouldn't - allow for new discovery zone around hole 170 - nor the new alteration zone 1.2 km NE on strike.
43-101 doesn't and shouldn't provide andy value for Russell and Henday.
43-101's are legal documents where authors have to put their reputations and professional degree's on the line. These are not conservative estimates - they are ULTRA conservative estimates.
Canaccord and Raymond James have maintained their target prices athat are substantially higher than current price.
David Coffin still likes how this is unfolding and is still a follower and it is still in his stable of picks. Now if you know the Coffin Brothers - they pride themselves on picking winners and they don't hesitate to tell you when they leave the table. A couple of other speakers did the HAT name drop in their presentaions and it was in a spec/positive tone.
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So much for the show.
My partner and I also went over the other past discoveries in the Athabaska. Starting at McArthur you have 300 m/lbs - go 45 km NE and you get Cigar Lk at 150+ m/lbs - another 45 km NE and you get a series of discoveries such as Midwest - MidwestA - Hathor - and a cluster of others in the same area (Eagle - Sue - Roque - Collins).
It is an individual choice as to how you evaluate the amount of risk you want in your portfolio - and what your personal estimate is of HAT's future. Yes - it could end up being a 25 million pound resource - which I think would be minable in the future but won't get us the kind of price we are looking for in a short term buyout. Or - you can look at the HAT drill map and very credibly see - that there is HUGE bluesky potential here - and that HAT still has tremendous "ELEPHANT" potential.
Based on the HAT TEAM and resources - geologists, management - treasury - location - current results to date - quality of the metalurgy - loacation to infrastructure - 2nd highest assays ever - geopolitical positives - best discovery in Athabaska in past decade - 3D exploration technology - Russell - Henday - etc, etc, etc. WELL????? - as an absolute minimum starting point - when you see the new zone created by hole 170 - why wouldn't you be excited about HAT's potential opportunity to continue growing the resource and add value going forward.
I was agonizing over my overweight position in HAT. Now I am comfortable that I am still holding a great opportunity going forward. I will certainly continue to re-evaluate daily as to how I play this out.
The 43-101 was the worst potential experience that we would have going forward. It is now done. It is 20% over anticipted estimates. I was against the 43-101 coming out this early, but I was wrong. The 43-101 foundation is in place now - and the skeleton is there for all to see.
In the mean time I remain LONG - happy - and eagerly awaiting not only hole 170 - but also how the infill drilling starts to fill in the 43-101 gaps. Now - with each batch of assays going forward - we start putting pounds and pounds of meat on those bones. And this evolution of the project will be followed closely by those who have signed the confidentiality agreements. It also allows INSTITUTIONS to seriously evaluate and invest. Therefore - the 43-101 has actuall been a value-added process.
Anybody here bashing can easily be put on IGNORE if you don't like the noise. My updated evaluation of HAT is this - and I hope helps you: HAT offers a tremendous upside in price over next 6-24 months. You need to pay close attention to each NR. How you trade it can make or lose you money along the way.
Ya Gotta Luv It !
Coastal.
