Sweden Overview

Located on the southern aspect of the Scandianvia Penisula, Sweden has established itself as a intergigal part of the European Union. It has a very stable democratic goverment, compedative corporate tax strucutre, a highly skilled work force, and very good, highly developed transportation and communication systems.

Sweden is the leading miner and the major gold, silver, copper, lead and iron ore producer in the European Union. Its mining history is believed to have been active for the last 1,000 years. It has a strong mining tradition which has benifited the economy for hundreds of years. Many mining suppliers and technology has come from this country.  

Urainum

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. 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).

Terms of agreement - Swedish JV projects

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.