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Announcement to the Australian Stock Exchange
4 April 2007
Option to Earn Majority Interest in High Grade
Sweden Uranium Projects
• Ability to earn up to a 70% interest in four projects with
demonstrated uranium mineralisation in Sweden.
• Previous surface results up to 4.7% uranium oxide. IOCG and
stratiform uranium potential exists over a significant area.
The directors of Hodges Resources Limited (ASX: HDG) (“Hodges” or “the
Company”) are pleased to announce that the Company has reached agreement on
four uranium projects in Sweden. The projects are:
Asnebogruvan Project (1 permit)
The area is prospective for iron oxide hosted uranium–gold mineralization as
evidenced by the presence of hematite breccia and highly anomalous uranium, gold
and rare earths in association with granites. Sampling by the Swedish Geological
Survey (“SGU”) in 1980 within two pits assayed 4.7% uranium oxide (U3O8), 28 g/t
gold, 0.32% wolfram, 2.7% tellurium, 0.15% yttrium, 10g/t silver and 25% iron oxide
whilst a grab sample from a second pit assayed 12.6 g/t gold, 0.11% wolfram, 1.0%
tellurium, 10g/t silver and 30% iron oxide (uranium was not analysed in this case).
Pitchblende-bearing mineralisation was noted to occur within fractures and faults
within a hematite brecciated sandstone. Within the local area seven more uranium
bearing fractures were noted.
The area was also explored for stratabound uranium mineralisation in 1970 by the
SGU. One and a half kilometres east of sampled pits, still within the claim area,
drilling discovered an irregular uranium horizon averaging 0.054% U3O8.
Norr Dottern (4 permits)
Norr Dottern hosts an extensive uranium mineralised boulder field extending for over
3.5 km. Historic sampling of only a small set of boulders averaged 0.32% U3O8 and
ranged up to 1.0% U3O8.
Follow up trenching was completed in 1974 which exposed a high grade uranium–
bearing zone that assayed up to 28.2% U3O8 over 0.2 metres with an average grade
of 3.5% U3O8 over 3 metres width along the 5 metre long excavation. A magnetic
survey showed that the mineralised area was characterised by a pronounced
magnetic low anomaly and additional magnetic lows were identified that were
recommended for drill testing but never undertaken.
Harrejokk Project (2 permits)
Uranium mineralization was discovered at Harrejokk by the Swedish Geological
Survey in 1970. Uranium mineralisation occurs within a granitic syenite and high
uranium grades are common. Sixty five boulders averaged 0.25% U3O8 with values
ranging from 0.1% to 4.2% U3O8. The Swedish Geological Survey drilled nineteen
drillholes in the area to test for the primary source of the high grade uranium
mineralisation. This drilling did not locate bedrock uranium mineralisation, which the
Company will aim to locate.
Two kilometres away at Harrejokk East three boulder trains have been defined. The
Swedish Geological Survey drilled twenty five drillholes in 1974 to test the boulder
trains, eleven of which intersected uranium mineralisation. Two moderately southeast
dipping uranium mineralised structures were discovered. Best drill results
included 4.5m @ 0.14% U3O8 from 85m and 5.3m @ 0.11% U3O8 from 34m.
Sjaule Project (1 permit)
Uranium mineralisation at Sjaune is hosted within north east trending, steeply dipping
fractures zones over an area of 700m by 950m. Twenty-eight surface samples
across the project area were measured with a gamma radiation detector. Five
samples assayed by the Swedish Geological Survey in 1976, ranged up to 0.57%
U3O8 and averaged 0.22% U3O8 over the main mineralised structure which is 20
metres wide and 300 metres long zone. Uranium mineralisation is characterised by
pitchblende and brannerite. Pitchblende is a naturally occurring uranium oxide (UO2)
and brannerite is a complex oxide of uranium, calcium, titanium and iron.
The project is located in a remote location in a nature reserve where exploration is
permitted subject to particular environmental procedures. The project was considered
by Swedish governmental geologists in the 1970s to be the most prospective project
within the Hotagen inlier and has yet to be drill tested.
TERMS OF THE AGREEMENT
The agreement was reached with Widerange Corporation Pty. Ltd.. Under the terms
of the agreement, Hodges can initially earn 47.5% by completing the following:
�� payment of US$60,000 cash on execution of the agreement
�� issuing of 1,500,000 fully paid ordinary shares
�� Issuing 1.5M Tranche A options exercisable at $0.50,
�� 1.5M Tranche B options exercisable at $0.75, (the Tranche A options must be
exercised before the B tranche is allotted),
�� Issuing 1.5M Tranche C options exercisable at $1.00 (the Tranche B options
must be exercised before the Tranche C is allotted),
�� Spending US$1,000,000 over four years
This agreement is conditional upon various regulatory approvals as well as
shareholder approval.
Hodges has the right to increase its equity to 70% by fully funding a successful
feasibility study. The vendors’ free-carried interest will remain until completion of a
bankable feasibility study.
Hodges has the exclusive right, until 22 April 2007, to conduct due diligence prior to
entering into the binding arrangement outlined above. Currently there has been
insufficient exploration over the projects to define mineral resources and it is not
certain that further exploration will result in the determination of a mineral resource.
The results have been reported in a range of technical reports sourced from the
Swedish Geological Survey dating from 1969 to 1991. It is the Company’s intention
to commence a more systematic evaluation of the projects following final due
diligence once the field season commences.
Sweden has an estimated 15% of the world's uranium deposits and ten nuclear
power reactors which provide approximately 50% of the countries electricity. The
Company considers this to be a particularly exciting opportunity to earn a majority
interest in four very promising uranium projects in a country which has a very
advanced nuclear industry as well as a well developed mining culture and regulatory
system.
Adrian Griffin
Managing Director
DISCLAIMER
Information in this report pertaining to mineral resources and exploration results has been prepared relying on
publicly available information provided by the vendor. The information has been compiled by Mr Don Horn who
is a Member of the Australasian Institute of Mining and Metallurgy. The information reported is contained in a
range of open file reports which are publicly available from the Swedish Geological Survey. Mr Horn has
sufficient experience with respect to mineral exploration and to the activities being undertaken and qualifies as a
competent person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore reserves’. Hodges has no reason to believe the information is not accurate and intends
to verify the information whilst conducting due diligence on the projects. Mr Horn consents to the inclusion in the
report of the matters on his information in the form and context in which it appears.
Harrejokk
Asnebogruvan
Sjaule
Norr Dottern
HODGES RESOURCES LIMITED
Uranium Projects Location - Sweden