“On August 27, 2008, Hathor announced additional results from its summer drilling program, including 69 m grading 2.33% U3O8.” Donnelly continues, “Hathor appears to have a deposit! How big is it? Based on discussions with management, we roughly estimate that the Roughrider Zone has approximately 828,000 tonnes at an average grade of 2.4% U3O8, containing approximately 43.8 million lbs of U3O8. We expect the Roughrider Zone could get much bigger.”

Donnelly also points out the “Great Neighborhood” of the discovery in that it “is located only 10 km from the McClean Lake mill which is currently awaiting word on when it might receive ore from AREVA Resources Canada Inc. (“AREVA”) and Cameco Corp.’s (CCO-TSX) Cigar Lake mine.”

Donnelly suggests that Hathor is a great takeover candidate and writes, “Given the Midwest NorthEast’s proximity to the McClean Lake mill, we expect that AREVA, Cameco or Denison Mines Corp. (DML-TSX) could attempt to take over Hathor.”

Donnelly suggests a 12-month target price of $6.40 and rates it as a “Speculative Buy” and the maps and scenario enclosed in the report shows how he expects it could get to becoming a takeover candidate.

David Coffin, the geologist half of the duo Coffin brothers that publish the Hard Rock Analyst, commenting on the Salman report (which is getting a lot of respect in the mining community) says …“His $12.50 per pound valuation base is a little higher than mine (I am using $10) but while he is assuming a 20% gain to the resource I point out that only half the geophysical anomaly that first spotted the deposit has so far been tested. That could/would imply a +60 million pound potential, which is well into the big category and would likely get a bidding war underway for the company that could well garner a better price per pound than either of us is using.”

He points to the sketch that Donnelly used showing there is actually potential trend extension greater than 50%. “It doesn’t show however” Coffin says, “a second anomaly behind the drill.” What to expect from this story from Coffin? He calls it under $3.00, just a “straight buy” and above $3.00, a speculative buy, but believes that if they can come up with the 60 million pounds of ore, he figures it’s worth $8.00 per share.

Canaccord's David Pescod took the Salman Partner's report around for other people’s comments. He states that Mining industry veteran Brad Cooke been involved in the stock since the first discovery was announced and what gets him excited about the Hathor play is that these uranium deposits tend to come in clusters and if there is a cluster, you see a takeout target in double-digits.

A fourth person suggests that’s “It’s the only mining story out there these days that is creating any interest” and has a price target that well, we aren’t even going to write about.

On Friday, Hathor announced some drilling results of a massive 46 metres grading a huge 3.25% U308, into a market that was in panic mode (like almost everyday lately). We suspect leading up to this winter’s drilling program, this will be the main mining story on beaten up mining brokers screens.

Additional drilling results from Hathor are expected in the next few weeks and then a big drilling program starts in January when the lake is frozen. In the meantime, we will mention that this is the speculative mining business in a fearful market and it seems anything that can go wrong does

Maybe someone can reduce size!