My latest uranium play. Based in Sweden. Very speculative just like my other new Uranium play being ECH.
If you buy these do realise the risks.
HDG : Total Class Issue: 21,709,978
HDGO : Total Class Issue: 19,980,025
Currently at 57 cents.
Fully diluted the company is just under 24 million dollars.
In short the reason why I have bought Hodges is
Nathan Mcmahon and Clive Jones are both involved in this company. They also are major players in BMN. Looks interesting. The reason why I bought these is pretty simple. Some historical exploration with some good grades from the historic sampling/small amount of shares on issue/a large range of permits obtained. Downfall is that I think there are some issues with uranium mining in Sweden. Nuclear Power reactors power 50% of the counties energy though and I think if there are any issues they will all eventually change. Everyone is trying to help the world be cleaner and Uranium mining is not such a bad thing anymore because it will help achieve a cleaner planet. This is why HDG is my next speculative play.
Below was their recent announcement.
Option to Earn Majority Interest in High Grade Sweden Uranium Projects
• Ability to earn up to a 70% interest in four projects with demonstrated uranium mineralisation in Sweden.
• Previous surface results up to 4.7% uranium oxide. IOCG and stratiform uranium potential exists over a significant area.
The directors of Hodges Resources Limited (ASX: HDG) (“Hodges” or “the Company”) are pleased to announce that the Company has reached agreement on four uranium projects in Sweden. The projects are:
Asnebogruvan Project (1 permit)
The area is prospective for iron oxide hosted uranium–gold mineralization as evidenced by the presence of hematite breccia and highly anomalous uranium, gold and rare earths in association with granites. Sampling by the Swedish Geological Survey (“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.
Norr Dottern (4 permits)
Norr Dottern hosts an extensive uranium mineralised boulder field extending for over 3.5 km. Historic sampling of only a small set of boulders averaged 0.32% U3O8 and ranged up to 1.0% U3O8. Follow up trenching was completed in 1974 which 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 3 metres width along the 5 metre long excavation. A magnetic survey showed that the mineralised area was characterised by a pronounced magnetic low anomaly and additional magnetic lows were identified that were recommended for drill testing but never undertaken.
Harrejokk Project (2 permits)
Uranium mineralization was discovered at Harrejokk by the Swedish Geological Survey 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. The Swedish Geological Survey drilled nineteen drillholes in the area to test for the primary source of the high grade uranium mineralisation. This drilling did not locate bedrock uranium mineralisation, which the Company will aim to locate. Two kilometres away at Harrejokk East three boulder trains have been defined. The Swedish Geological Survey drilled twenty five drillholes in 1974 to test the boulder trains, eleven of which intersected uranium mineralisation. Two moderately southeast dipping uranium mineralised structures were discovered. Best drill results included 4.5m @ 0.14% U3O8 from 85m and 5.3m @ 0.11% U3O8 from 34m.
Sjaule Project (1 permit)
Uranium mineralisation at Sjaune is hosted within north east trending, steeply dipping fractures zones over an area of 700m by 950m. Twenty-eight surface samples across the project area were measured with a gamma radiation detector. 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 is located in a remote location in a nature reserve where exploration is permitted subject to particular environmental procedures. 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.
TERMS OF THE AGREEMENT
The agreement was reached with Widerange Corporation Pty. Ltd.. Under the terms of the agreement, Hodges can initially earn 47.5% by completing the following:
payment of US$60,000 cash on execution of the agreement
issuing of 1,500,000 fully paid ordinary shares
Issuing 1.5M Tranche A options exercisable at $0.50,
1.5M Tranche B options exercisable at $0.75, (the Tranche A options must be
exercised before the B tranche is allotted),
Issuing 1.5M Tranche C options exercisable at $1.00 (the Tranche B options must be exercised before the Tranche C is allotted),
Spending US$1,000,000 over four years This agreement is conditional upon various regulatory approvals as well as shareholder approval. Hodges has the right to increase its equity to 70% by fully funding a successful feasibility study. The vendors’ free-carried interest will remain until completion of a bankable feasibility study. Hodges has the exclusive right, until 22 April 2007, to conduct due diligence prior to entering into the binding arrangement outlined above. Currently there has been insufficient exploration over the projects to define mineral resources and it is not certain that further exploration will result in the determination of a mineral resource. The results have been reported in a range of technical reports sourced from the Swedish Geological Survey dating from 1969 to 1991. It is the Company’s intention to commence a more systematic evaluation of the projects following final due diligence once the field season commences.
Sweden has an estimated 15% of the world's uranium deposits and ten nuclear power reactors which provide approximately 50% of the countries electricity. The Company considers this to be a particularly exciting opportunity to earn a majority interest in four very promising uranium projects in a country which has a very advanced nuclear industry as well as a well developed mining culture and regulatory system.