Project locations

Around 15% of the world's uranium deposits are thought to be located in Sweden, where 10 nuclear power reactors supply approximately 50% of the country's electricity needs. Uranium exploration there peaked in the 1970s but was abandoned when the Swedish government decided to defer any decision on uranium mining for 30 years, despite commissioning a number of nuclear power plants. Now, with a change in public sentiment towards uranium mining in Sweden, exploration has resumed and a number of projects there are at the advanced resource definition and scoping stages (see also Uranium information).

In June 2007, Hodges exercised its option to earn up to a 70% interest in four Swedish uranium projects: Asnebogruvan, Norr Dottern, Harrejok and Sjaule. All are located within mature mining provinces and boast demonstrated uranium mineralisation.

During the 1970s and '80s, the Swedish Geological Survey ('SGU') sampled the four project areas, and their results revealed up to 28% uranium oxide ('U3O8').

To date, technical investigations by Hodges at Asnebogruvan, Norr Dottern and Harrejok have included rock-chip sampling and spectrometer screening of outcrops, chip samples and drill core. (Access to Sjaule was not possible during the due-diligence period.) The Company's results support the historic work on the deposits. Styles of mineralisation include intrusive or hydrothermal vein-related and potentially iron oxide-copper-gold ('IOCG') targets (the most prominent Australian example of this type of deposit is Olympic Dam in South Australia).

Additional tenure has been applied for.

This project, located about 400 kilometres west of Stockholm, is prospective for iron-oxide hosted uranium-gold mineralisation, as evidenced by the presence of haematite breccia and highly anomalous uranium, gold and rare earths in association with granites.

In 1980, sampling by the SGU within two pits assayed 4.7% U3O8, 28 grams per tonne ('g/t') gold, 0.32% wolfram, 2.7% tellurium, 0.15% yttrium, 10 g/t silver and 25% iron oxide. When, a decade earlier, the SGU explored the area for strata-bound uranium mineralisation, drilling discovered an irregular uranium horizon 1.5 kilometres east of the sampled pits but still within the claim area. That horizon averaged 0.054% U3O8.

During site visits in 2007, Hodges' geologists sampled radioactive mulloch from prospecting pits at Asnebogruvan. The rock-chip results include a peak value of 7.7% uranium from old workings at Langvanttnet, which improves on the values reported by the SGU. The accompanying high-grade gold, base-metal and rare-earth values suggest a potentially valid comparison with the IOCG style of mineralisation. While further work is required to confirm this model, the Langvanttvet anomaly represents a priority drill target for the Company, with the potential for very high-grade uranium mineralisation and associated rare earths and gold similar to IOCG style deposits.

This project - located in the Arjeplog-Arvidsjaur uranium province of northern Sweden, about 700 kilometres from Stockholm - hosts eight significant uranium prospects over 35 square kilometres, including an extensive uranium mineralised boulder field that extends for more than 3.5 kilometres.

In 1974, historic sampling by the SGU of only a small set of boulders averaged 0.32% U3O8, ranging up to 1.0% U3O8. In 1974, follow-up trenching 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 a 3-metre width along the 5-metre long excavation. A magnetic survey revealed the mineralised area as being characterised by a pronounced magnetic low anomaly. At the time, additional magnetic lows were also located and recommended for drill-testing; however, no such testing occurred.

During work by Hodges 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. However, the high-grade mineralisation previously identified remains to be adequately tested, and important structural control or trends must be explored along strike (few holes have been drilled to date).

This project is another priority target for Hodges, with future exploration to include drilling along strike and depth.

In 1970, the SGU discovered uranium mineralisation at Harrejokk. It occurs within a granitic syenite and high grades are common. Some 65 boulders sampled within the project area averaged 0.25% U3O8, with values ranging from 0.1% to 4.2% U3O8.

At Harrejok East in 1974, the SGU drilled 25 holes to test for the source of radioactive boulder trains. Eleven of those holes intersected uranium mineralisation. Two moderately southeast-dipping uranium mineralized structures were discovered, with best drill results including 4.5 metres @ 0.14% U3O8 from 85 metres and 5.3 metres @ 0.11% U3O8 from 34 metres.

At Sjaule, the uranium mineralisation is hosted within northeast-trending, steeply dipping fracture zones in area of 700 by 950 metres. When, in 1976, the SGU assayed five of the surface samples, results ranged up to 0.57% U3O8 and averaged 0.22% U3O8 over the main mineralised zone (20 by 300 metres). The uranium mineralisation is characterised by pitchblende, a naturally occurring uranium oxide, and brannerite, a complex oxide of uranium, calcium, titanium and iron.

The Sjaule project is located in a remote area within a nature reserve, with exploration permitted subject to particular environmental procedures. Despite the fact that, in the 1970s, Swedish government geologists considered the project area the most prospective within the Hotagen inlier, it has yet to be drill-tested.

In July 2007, Hodges issued the vendor shares and options, allowing the Company to commence its earn-in. Hodges can earn 47.5% by investing US$1 million over four years. Further, the Company has the right to increase its equity to 70% by fully funding a bankable feasibility study. The vendors' free-carried interest will remain in place until completion of a bankable feasibility study.