Moliagul (Mo, Au)

The Moliagul project is a molybdenum (Mo) and gold (Au) project located ~15 kilometres east of Tarnagulla in northern Victoria, Australia. (Figure 1).

Hodges currently holds a 90% interest in Moliagul.

Historically, the area has been subject to sporadic mining and exploration for both commodities. The mining and exploration resulted in only limited production during the First World War (1914 – 1918) while exploration completed principally during the early 80’s returned encouraging results but was never adequately followed up.

The deposit is characterised by widespread mineralisation associated with stockwork veining along the margins of a granodiorite host. Very little modern exploration had been undertaken on the extensive geochemical anomaly.

Since entering into the option on the project, Hodges has completed 18 diamond drill holes (MM8 – MM25) for a grand total of 3,235m. The drilling successfully identified significant grade molybdenum mineralization from surface to depths of 250m (the limit of drilling) over the previously identified soil and rock anomaly.

The main Mo zone at Moliagul has substantial open-cut potential. Prospectivity in the surrounding area also appears good. Moreover, Moliagul contains a subsidiary target of regional gold mineralised structures extending over several kilometres, with little or no modern exploration in the area to date.

Access to the area is good, with the majority of the tenement encompassing either state forest or broad-acre wheat/sheep farming land. The climate is temperate, the terrain varies from plains to hilly and the main area of mineralisation occurs as a northwest-trending ridge less than 400 metres above sea level.

Regional and Prospect Geology

The project area lies on the western edge of the Bendigo Tough and is comprised of Cambro‐Ordovician flysch sediments, assigned to the Saint Arnaud Group, which have been intruded by a series of Devonian felsic intrusive plutons, Figure 2.

Previous Exploration

Initial accounts of prospecting and informal mining targeting Molybdenum at Mt Moliagul date back to the First World War (1914 – 1918) while modern exploration did not commence until the early 1970’s (Hutchinson, 1996).

Hodges Exploration

Since entering into the option on the project Hodges has completed 18 diamond drill holes (MM8 – MM25) for a grand total of 3,235 m, Table 1. The drilling successfully identified significant grade molybdenum mineralization from surface to depths of 250m (limit of drilling) over the previously identified soil and rock anomaly (identified by BHP).

Drill holes averaged 185m deep in general and were drilled perpendicular to the main mineralized trend along the granodiorite –hornfels contact. Drill holes were space on sections at 50 – 150m along strike, Figure 1.

Better results (>100ppm Mo) have outlined an area of consistent mineralisation approximately 700m (long) x 250m (wide) from surface to maximum tested depth of 250m (MM18).

All holes intersected variable vein hosted and visible molybdenite mineralisation from surface over their entire lengths.

Although Mt Moliagul lies partly within a Goldfield Heritage Reserve, it is not associated with the heritage features of that reserve and exploration and mining are permitted.

A native title Indigenous Land Use Agreement (ILUA) has been in place since early 2006.

Exploration Targets

Much of the drilling by previous operators was based on geological mapping of the area, highlighted a zone of marked Mo-bearing stockwork veining along the margins of the Moliagul granite while some of the more successful holes (the MM series, drilled later) were targeted on induced polarization anomalies. This included the last hole drilled prior to the Hodges, exploration. Hole MM-06, returned an extraordinarily wide intercept of 195 metres at 715 parts per million Mo, from surface. Significantly, the hole was terminated in mineralisation and the extent of the mineralisation at depth is still unknown.

The Moliagul Project includes numerous gold prospects along three or more major, north-south trending, weakly magnetic structures, each several kilometres in strike length. Historically, the area’s goldfield has been dominated by alluvial production, and it was the discovery site of the largest alluvial nugget ever discovered – the Welcome Stranger. Past explorers developed little understanding of the primary source mineralisation; hence, little or no modern hard-rock exploration has occurred.

No Gold exploration has been undertaken by Hodges at present.

Conclusion

Hodges believes that the Moliagul Project has real potential to host a significant resource of economic Mo, especially in view of concerns over the future supply of this commodity. China has classified this element as strategically important. It was formerly a major supplier, and is now a becoming a net importer as it further expands its countries infrastructure, especially where Mo will be used in high-specification steel alloys.

Moliagul is a significant sized deposit which can be mined using low cost open pit methods and very simple processing techniques, located close to required infrastructure.