Announcement to the Australian Stock Exchange3rd July 2007Hodges...

Announcement to the Australian Stock Exchange
3rd July 2007
Hodges High Grade Uranium Results in Sweden
• Rock chip sampling returns results up to 7.7% Uranium in
Sweden.
• IOCG potential stratiform uranium mineralisation confirmed.
The directors of Hodges Resources Limited (ASX: HDG) (“Hodges” or “the
Company”) are pleased to announce final results from rock chip samples collected
over the Swedish uranium projects are now available. These confirm the high grade
uranium values reported in SGU work at both Norr Dottern and Asnebogruvan
Projects.
The Asnebogruvan rock chip results include a peak value of 7.7% uranium from old
workings at Langvattnet. This improves on the previous maximum reported value of
4.7% uranium by SGU work. Other samples ranged from 0.21% to 1.04% uranium.
The five uranium samples taken at Asnebogruvan averaged 1.9% uranium. Also,
assays at Langvattnet confirmed the anomalous rare earth element and gold
signature of the prospect with thorium values peaking at 0.1% and gold at 1.6g/t.
The Langvattnet anomaly is a high priority drill target for the company with the
potential for discovering very high grade uranium mineralisation and associated rare
earths and gold similar to iron oxide copper gold (“IOCG”) style deposits.
At Norr Dottern, three samples from radioactive bedrock and boulders averaged
0.14% uranium with a peak value from outcrop with visible mineralisation of 0.19%
uranium. This area represents another priority target for future exploration drilling
along strike and at depth as few holes have been drilled to date.
SAMPLE Project RT90_East RT90_West Material U Th Au
% ppm g/t
KIK 01 Norr Dottern 1636550 7299290
Radioactive boulder 0.17 9.5
0.00
JAR 01 Norr Dottern 1637897 7294799 Mineralised outcrop 0.07 12.8 0.00
JAR 02 Norr Dottern 1637915 7294805 Mineralised outcrop 0.19 12.1 0.00
AS01 Asnebogruvan 1301370 6545180 Haematite breccia 0.21 24.8 0.13
AS02 Asnebogruvan 1301370 6545180 Haematite breccia 0.23 32.2 0.22
AS03 Asnebogruvan 1301370 6545180 Haematite breccia 1.04 140.5 0.24
AS04 Asnebogruvan 1301370 6545180 Haematite breccia 0.56 46.6 0.15
AS06 Asnebogruvan 1301370 6545180 Haematite breccia 7.71 980 1.6
These results further reinforce the Company’s views on the prospectivity of the
Swedish uranium projects. The Company is currently finalizing plans for further
exploration programmes on these projects.
Please contact either Mr. Adrian Griffin or Nathan McMahon should you have any
queries on this announcement.
Mr. Nathan McMahon Mr. Bryan Dixon
Mobile +61 411 124 542 Mobile +61 422930724
BACKGROUND TO SWEDEN PROJECTS
Norr Dottern
The SGU discovered uranium mineralisation in the area in 1974 from boulder tracing,
mapping and sampling at 8 prospects. Historic sampling of only a small set of
boulders averaged 0.32% U3O8 and ranged up to 1.0% U3O8. SGU reports identify
advanced targets with ground geophysical work and diamond drilling. This work was
successful in identifying high-grade, narrow bedrock uranium mineralisation
associated with roughly north north-east fractures.
Norr Dottern 1 drilling includes best results of 5m @ 0.10% from 65m (DOT77003).
A small exploration pit at Norr Dottern 2 reportedly exposed a 5 x 1.5m mineralised
zone with uranium grades of up to 28% over 0.2m. A translated section of the SGU
report states:
“During detailed boulder work in 1974 the SGU discovered a radioactive
fracture on top of the Norr Döttern mountain. The fracture was uncovered for
over 5m. Uranium sits in uraninite in the fracture and dispersed finely around it.
The content over a few dm over the fracture is 20% U and the mean value is
approx 3% over a width of 3 metres. In 1974 a simpler/smaller uncovering was
done by hand.”
Both Norr Dottern 1 and 2 targets are considered significant due to drill intercepts or
mineralised outcrop discovered after tracing radioactive boulders to their source.
The diamond core from Norr Dottern 1 and 2 was viewed by Hodges geologists. A
scintillometer confirmed that radioactive intervals were sampled by the SGU from
hematite-carbonate altered fractures in coarse-grained pink granite or epi-syenite
(quartz-poor syenite)
The Norr Dottern project contains 8 significant uranium prospects over 35 sq km with
varying levels of follow up completed to date. High grade mineralisation identified in
outcrop and drilling has not been adequately tested and important structural controls
or trends have not been explored along strike. Drill targets will be defined by
geochemical sampling and ground geophysical surveys.
Harrejokk Project
Uranium mineralization was discovered at Harrejokk by the SGU 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.
At Harrejokk East , the Swedish Geological Survey drilled twenty five drill holes in
1974 to test for the source of radioactive boulder trains. Eleven drill holes intersected
uranium mineralisation. Two moderately south-east dipping uranium mineralised
structures were discovered and best drill results included 4.5m @ 0.14% U3O8 from
85m and 5.3m @ 0.11% U3O8 from 34m.
Asnebogruvan Project
The presence of intrusives, hematite breccias and the multi commodity mineralisation
in the area has drawn some comparisons with IOCG style mineralisation (e.g.
Olympic Dam). Sandstone hosted mineralisation is also widespread in the district but
usually only 1-2m thick. The claim contains three main prospects:
a) the central Langvattnet structurally controlled uranium mineralisation within
hematite breccia and rare earth elements (analyses from old workings of up to
0.25% Pb, 0.34% Ni, 374ppm Co, 24.8% Fe, 28g/t Au, 0.32% W, 2.7% Te,
4%U and 0.17% Th),
b) the Haserud or Asnebo East prospect located 1.5 km east of Langvattnet
whichcontains uranium and copper mineralisation intersected in 9 diamond drill
holescompleted by the SGU in 1983-84 (peak analysis of 460ppm U in drilling),
and
c) the Asnebo West prospect which is a copper showing where 9 diamond drill
holes were drilled by the SGU in 1983. This revealed a copper-silver
mineralised contact between sandstone and calcareous schist.
Sampling by the 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.
During recent site visits by Hodges geologists, radioactive mulloch was sampled from
prospecting pits at Asnebogruran. The accompanying high grade gold, base metal
and rare earth values suggest that an IOCG mineralisation style is potentially a valid
comparison. Further work will be required to confirm this model. The project
represents an important exploration target of Uranium and multi-commodity
mineralisation.
Sjaule Project
Uranium mineralisation at Sjaule is hosted within north east trending, steeply dipping
fractures zones over an area of 700m by 950m. 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 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.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Don Horn, who is a Member or Fellow of The Australasian Institute of Mining and
Metallurgy. Mr Horn is employed by Kimba Resources Pty Ltd.. Mr Horn has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Horn consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
Some information in this report pertaining to mineral resources and exploration results has been prepared relying
on publicly available information. The information reported is contained in a range of open file reports which are
publicly available from the Swedish Geological Survey. Hodges has no reason to believe the information is not
accurate and will continue to verify the information whilst conducting exploration activities on the projects.