Bids already above last sale this morning and the oppies only have 30,000 left on the sell side at this point.
I do love these stocks where there is little available for sale, as they are so well sought out when good anns arrive. Wonder how long before we find out why the strength is here on a continuing basis.
Last quarterly was very interesting. Good gold grades in China - Caledon JV for the AIM listing in progress, subsequently canned, so I am guessing htey may be coming up with a 'better offer' from elsewhere.
Patience is a virtue!!
ACN 115 819 479 L2/22 Oxford Close Leederville WA 6007 Ph: 9380 4600 Fax: 9381 5911 Email:[email protected] www.hodgesresources.com.au 31 October 2006 Company Announcements Office ELS512006 Australian Stock Exchange Limited Electronic Lodgement System Dear Sir / Madam QUARTERLY ACTIVITIES REPORT FOR QUARTER ENDED 30 SEPTEMBER 2006 EXPLORATION No work was done on the Company’s Mulwarrie project during the quarter. NEW BUSINESS - CHINA Under a Heads of Agreement between Hodges Resources Limited and Caledon Resources PLC dated 17 May 2006 (and amended 28 August 2006), Hodges has the rights to acquire all of Caledon’s China assets. The agreements are subject to a number of conditions, the most importantly being the readmission of Caledon onto the Alternative Investment Market (AIM) and the formal acquisition of a major coal asset in Queensland (see Caledon CDN website at caledonresources.com for details). The conditions above are expected to be concluded at the end of November 2006, after which the projects will formally transfer to Hodges. In the meantime, exploration work is continuing in China, with the main focus being the conclusion of the latest phase of Mojiang drilling, Hengxian geochemical sampling as well as regional project appraisals. Mojiang During the Quarter, a major drilling operation was concluded on the Mojiang gold project, Yunnan Province, PRC. The Company drilled 2,592 metres of Reverse Circulation (43 holes) drilling and 1603 metres (24 holes) of diamond drilling. The aim of the drilling was: • To further test and better define areas of near surface higher grade mineralization. • Close-up drill spacing to allow detailed geological and structural analysis to be used in a resource/reserve estimate to be conducted by SRK. • Use larger diameter drill core to allow for sufficient sample to be recovered for further metallurgical test work. Highlights from the recent Mojiang drilling include: MJDDH009 intersected 10.12 g/t gold over 26.00 metres MJRC057 intersected 4.84 g/t gold over 5.00 metres MJRC059 intersected 2.54 g/t gold over 45.00 metres ACN 115 819 479 L2/22 Oxford Close Leederville WA 6007 Ph: 9380 4600 Fax: 9381 5911 Email:[email protected] www.hodgesresources.com.au MJRC061 intersected 1.54 g/t gold over 24.00 metres MJRC071 intersected 2.29 g/t gold over 16.00 metres MJRC074 intersected 8.85 g/t gold over 1.00 metre MJRC075 intersected 15.35 g/t gold over 2.00 metres MJDDH013 intersected 2.05 g/t gold over 14metres MJDDH018 intersected 8.31 g/t gold over 1.75 metres MJDDH020 intersected 1.32 g/t gold over 35.80 metres MJDDH 022 intersected 17.10 g/t gold over 2.30 metres MJDDH 023 intersected 34.70 g/t gold over 1.30 metres MJDDH 024 intersected 2.70 g/t gold over 18 metres MJDDH 025 intersected 2.03 g/t gold over 14 metres MJDDH 027 intersected 7.24 g/t gold over 10 metres MJDDH 028 intersected 46.9 g/t gold over 2 metres MJDDH 030 intersected 5.43 g/t gold over 6 metres MJDDH 031 intersected 17.9 g/t gold over 2.5 metres MJDDH009 intersected 10.12 g/t gold over 26.00 metres MJRC057 intersected 4.84 g/t gold over 5.00 metres MJRC059 intersected 2.54 g/t gold over 45.00 metres MJRC061 intersected 1.54 g/t gold over 24.00 metres MJRC071 intersected 2.29 g/t gold over 16.00 metres MJRC074 intersected 8.85 g/t gold over 1.00 metre MJRC075 intersected 15.35 g/t gold over 2.00 metres The results of the recently completed programme again confirm the continuity of mineralization and presence of thick (>30m) zones of mineralization interspersed with narrow “bonanza” grade epithermal vein style mineralization. The recently completed programme combined with earlier drilling completed by Caledon brings the drill hole spacing down to a an average of 20 metres X 30 metres in the two areas selected for more intense drilling (45 N to 50 N and 56 N to 59N). This pattern of drilling was planned to allow for detailed geological and structural control on the estimation of gold resources, to be completed by SRK Engineering in the 3rd Quarter of 2006. Once all final trace element results have been received for the drilling the updated database will be forwarded to SRK to complete the independent resource estimate. A decision to commence with a scoping study on the Mojiang Project will be made on the basis of SRK’s results. Once all final trace element results have been received, representative core samples will be sent to Ore Test Laboratories (SGS) in Perth, Australia for further metallurgical testwork. Hengxian During the Quarter a soil geochemical programme was conducted designed to test for extensions to the gold mineralisation at Hengxian. Results from this work are yet to be processed. In addition, the agreement covering the Hengxian mining tenement was cancelled, and is being replaced with a similar agreement with the new tenement owners. ACN 115 819 479 L2/22 Oxford Close Leederville WA 6007 Ph: 9380 4600 Fax: 9381 5911 Email:[email protected] www.hodgesresources.com.au Gaolong and Badu Following drilling and mapping of the Gaolong and Badu tenements by Caledon, the Company decided to withdraw from the joint venture arrangements. Galong and Badu were held under a joint venture agreement between Blackwatch Resources (China) Ltd, a Cooperative joint venture company held 90% by Caledon and 10% by China National Gold Guangxi Corp. The CJV company continues to actively pursue mining opportunities in southern China. China Regional To expand Caledon/ Hodges portfolio of high quality projects, during the quarter Caledon personnel have made site visits and assessed 27 projects in Xinjiang, Sichuan, Yunnan, Guizhou, Guangxi and Hunan Provinces. Potential agreements are currently being discussed with owners of three of these projects which fit Caledon criteria of advanced projects with potential for rapidly increasing gold resources for a minimum outlay of exploration funds. FINANCIAL Cash on hand at the end of the quarter was $2.68 million. For further information, please call Adrian Griffin on +61 418 927 658. Yours faithfully HODGES RESOURCES LIMITED Adrian Griffin Managing Director Information in this report has been reviewed by a Competent Person as defined in the JORC Code, being Mr Paul Ingram (MAusIMM (CP)), of Caledon Resources Plc and Hodges Resources Ltd, who has sufficient experience in mineral resource estimation relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking, and consents to the inclusion in the public release of the matters based on their information in the form and context in which it appears.
HDG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
