| There is a compelling political development in | | | | company's uranium resources in Sweden, the |
| Sweden you should know about. The outcome | | | | same announcement confirmed the magnitude of |
| could very well impact the world's anti-nuclear | | | | the exploration target on its largest property, |
| movement and open the doors to a wave of | | | | Tasjo. According to the company's website, "83 |
| more aggressive nuclear energy build up. Sweden | | | | drill holes have been drilled... over an area of |
| has long been a bellwether for social progress and | | | | approximately 10 kilometres by 20 kilometres." |
| change. Shortly after Three Mile Island, the | | | | It's a vast target, between seven and ten |
| Swedes held a referendum on expanding nuclear | | | | kilometers, to explore. Hudson said, "We're going |
| energy in their country. Sweden voted it down. | | | | to put a few thousand meters into that in |
| But, political climates change. What happens in | | | | September or October." The company plans to |
| Sweden could help change attitudes toward | | | | spend about C$2 million of its C$9 million further |
| nuclear energy in Australia, Germany and | | | | exploring its properties over the next 12 to 18 |
| elsewhere. | | | | months. |
| A country's election can have a widespread ripple | | | | Previous government exploration at Tasjo wasn't |
| effect on an industry. Sweden's four-party | | | | as structured as many of today's mining |
| opposition bloc, known as the Alliance, is | | | | companies would like. "A lot of it (the tonnage) |
| challenging the Social Democrat-led government | | | | hasn't been counted," Hudson told us. "We went |
| for control of the Riksdag, the country's | | | | through the data in cardboard boxes. The data |
| parliament. One of the Alliance's main objectives is | | | | hadn't been out of the boxes since the mid |
| to cut the country's property tax, and eventually | | | | 1970s, and the last drilling was done in the 1980s." |
| remove it. Each year, Swedes must pay a tax | | | | Hudson said his team plans to set up a grid and |
| equivalent to one percent of a single family | | | | methodically drill it out, as opposed to how it was |
| home's tax value. The other item on the Alliance's | | | | drilled before. The prize could be enormous as |
| agenda is moving forward with the country's | | | | some historical estimates ran as high as 116 million |
| nuclear energy policy. | | | | pounds of U3O8 at Tasjo. But, those figures |
| Exactly two months from now, on September | | | | require modern exploration for regulatory |
| 17th, we predict Swedish voters will choose the | | | | compliant verification. Hudson emphasized, |
| center-right alliance, comprised of the Moderates, | | | | "Because of how the work was done, we're not |
| Liberals, Christian Democrats and the Centre | | | | happy to quote those resources." |
| party. Amid other reforms, Sweden's nuclear | | | | While the drilling may have been less methodical, |
| energy and uranium policies may be revived. The | | | | Hudson praises the Swedes for their storage |
| Centre party, which had supported phasing out | | | | capabilities, "The Swedes claim they've got the |
| nuclear power, has now thrown in its lot with the | | | | largest core yard in the world." For the past |
| Alliance, realizing there isn't an alternative to | | | | seven years, Hudson rented a house in Sweden in |
| nuclear for the time being. | | | | the same town where the core shack is located. |
| Sweden's Dependency on Nuclear Energy | | | | "This is all professionally stored in huge |
| At first glance, we bought the same anti-nuclear | | | | warehouses, all recorded and registered," he |
| propaganda the rest of the world's media | | | | explained. "At your request, they will pull out the |
| swallowed. In other words, we were misled into | | | | core with forklifts." According to Hudson, the data |
| believing Sweden was phasing out its nuclear | | | | is all there, about 98 percent (or more) of the drill |
| power plants. Perhaps, you had also concluded | | | | databases, including the assays and surveys. |
| Sweden was shutting down its nuclear fleet. The | | | | "We've got the data, and our people are scanning |
| reality is quite the opposite. Only two reactors | | | | and inputting the data," he added. |
| have been shut down - one in November 1999 | | | | We talked about the other uranium properties, |
| and another in June 2005. The country's ten | | | | some of the better of which could have as much |
| nuclear reactors produce about 75 billion kWh. This | | | | as 30 million pounds of uranium oxide. "The better |
| has accounted for as much as 51 percent of | | | | project, from a short-term perspective is |
| Sweden's electricity production! In 2005, about | | | | Klappibacken," Hudson noted. Historical estimated |
| four percent of Sweden's electricity was | | | | were compiled by the Swedish Geological Survey |
| exported. | | | | (SGU) in 1984, when the property was last |
| The major media would have us believe Swedes | | | | explored. Thirty-two drill holes were completed in |
| are anti-nuclear. This conclusion was reached after | | | | an area about the size of a football field. The |
| Sweden's 1980 referendum on the country's | | | | recent Canadian regulatory approved report |
| nuclear power program. But, Swedish voters | | | | showed an indicated resource of about two million |
| were offered three very limited choices about | | | | pounds. This was considered to be a minimum |
| continuing the build up on Sweden's nuclear energy | | | | because uranium mineralization was still open |
| program, to which the answers could only have | | | | laterally and at depth. Hudson was excited about |
| been: NO, No and no, depending upon the loudness | | | | the Klappibacken property, "It's over $100 per ton |
| with which a voter voiced his "no." Few were | | | | in uranium value. It's wide and thick from surface. |
| surprised at the outcome. Yet, no reactors were | | | | We're trying to get something up to prefeasibility." |
| phased out until nearly two decades later. What | | | | The Duobblon property confirmed previous SGU |
| was never publicized was that a clear majority of | | | | drilling of fifty-five holes, which was done between |
| the Swedish voters believed the existing reactors | | | | 1976 and 1979. The most promising of that drilling |
| should continue running until new energy sources | | | | may be the central zone, where thirty-five holes |
| replaced nuclear. | | | | were drilled over a strike length of one kilometer. |
| A 1996 survey conducted by the Confederation | | | | Another four kilometers, of what Mawson |
| of Swedish Industries appalled the anti-nuclear | | | | believes may be the host resource, remains |
| movement - about 80 percent of those surveyed | | | | undrilled. This may be a near-surface opportunity, |
| were in favor of nuclear power. Subsequent | | | | possibly for open pit mining. Uranium mineralization |
| Swedish polls showed as few as 10 percent of | | | | extends from three meters below the surface to |
| those surveyed wanted nuclear energy phased | | | | at least 300 meters of vertical depth. |
| out. About the same percentage wants to | | | | We barely discussed the Flistjarn project during |
| protect Sweden's four remaining rivers from | | | | our phone conversation, except in passing. This |
| future hydro construction. By contrast, | | | | may be an area where Mawson may find an |
| three-quarters of Swedes polled gave "restraining | | | | Athabasca-style deposit, based upon how the |
| greenhouse gas emissions" the highest | | | | company interprets the vein and |
| environmental priority. | | | | unconformity-related mineralization hosted by a |
| Sweden depends upon fossil fuels for less than | | | | block of Paleozoic sediments thrust over |
| ten percent of its electricity generation. You do | | | | Precambrian volcanoes. First explored by the SGU |
| the math. For future electricity generation, | | | | in 1977 as a way to determine if Sweden could |
| Swedes must face a choice between increasing | | | | be uranium-independent, it was financed by the |
| their nuclear power capacity and escalating their | | | | Swedish Nuclear Fuel Supply Company, SKBF. |
| meager dependence upon fossil fuels. A March | | | | Mawson released results of grab and channel |
| 2005 poll revealed an astounding 83 percent of | | | | samples in December 2005. |
| those surveyed would support the country's plans | | | | According to Hudson, some of the samples have |
| to maintain, or even increase, its nuclear power | | | | run up to 20 percent uranium. "Getting these |
| program. | | | | shipped out of Sweden is a challenge, especially |
| The choice may already exist in Swedish laws. A | | | | with the high grade ones," he told us. "We have |
| spokesman for the German Atomic Forum, | | | | to wrap them in lots of lead, so a few kilos of |
| Christian Woessner, pointed out in a recent media | | | | rock become 40 kilos of lead-covered boxes." |
| interview, "Under Swedish law the (nuclear) plants | | | | Nothing has been released on Flistjarn since the |
| can not be closed until there is a viable | | | | values were announced, and the property was |
| alternative." Because Sweden is about 47-percent | | | | not mentioned in the recent NI 43-101 |
| dependent on nuclear power, Swedish parliament | | | | announcement. |
| has repeatedly delayed plans to shut down it | | | | Conclusion |
| stations. What once were target dates of 2010 | | | | Sweden should become an excellent test case for |
| have been reportedly moved back as far away | | | | a change in Australia's Three-Mines policy. |
| as the year 2050. A recent Swedish article | | | | Sweden's September election could officially set |
| discussed a summary of investments in the | | | | back the worldwide anti-nuclear movement and |
| country's energy sector through the end of the | | | | further change attitudes in the European Union. |
| decade. More than 25 percent will be invested in | | | | This weekend's G8 Summit in St. Petersburg may |
| modernizing and upgrading Swedish nuclear plants. | | | | have already spurred emotions for a more |
| Increased Uranium Exploration Activity | | | | favorable climate toward nuclear energy. |
| At this time, uranium mining is banned in Sweden. | | | | Uranium mining, the front end of the nuclear |
| Will that soon change? In November 2005, Platts | | | | cycle, is sometimes ignored in the greater scheme |
| carried a news item that the world's second | | | | of the nuclear renaissance. Yet, if a country hopes |
| largest uranium producer Cogema, a subsidiary of | | | | to become energy independent, it must cultivate |
| Areva, was spending about 1.7 million euros on | | | | its domestic resources. Sweden, again, may |
| prospecting in Sweden. The industry giant | | | | become a test case on this point as well. One of |
| announced plans to narrow down mining sites, | | | | the key points, which caught our eye about |
| after its initial prospecting. Krister Soederholm, | | | | Mawson Resources, and the primary reason we |
| chief inspector of mining at the Ministry of Trade | | | | discussed the company's prospects at length was |
| & Industry, told Platts that Sweden would | | | | its technical team. To be taken seriously, a |
| respond positively if Cogema's activity "would be | | | | country's mining officials want to know the |
| of significant benefit to the country." Conscientious | | | | personalities behind the company. As did we. |
| Sweden is still reeling from a recent media expose | | | | Unlike many other companies we've reviewed, |
| showing that the country now imports a large | | | | Mawson assembled a proven mining team. At the |
| portion of its uranium from Kazakhstan, where | | | | top is Andrew Browne, who was the Competent |
| mining conditions are reportedly abysmal. | | | | Person to sign off on Australia's Jabiluka uranium |
| On July 11th, one Canadian-traded uranium | | | | project, as well as the team leader for the |
| development company announced its NI 43-101 | | | | discovery of the Ranger 68 uranium deposit in |
| resource for three of its uranium properties in | | | | Australia's Northern Territory. He's not alone on |
| Sweden. We spoke with Michael Hudson, Chief | | | | this team who has been credited with an |
| Executive of Mawson Resources (TSX: MAW; | | | | exploration discovery. CEO Michael Hudson |
| Frankfurt: MRY), about the company's prospects. | | | | discovered the Portia copper-gold project, also |
| First, he explained that Sweden hasn't had any | | | | having delineated and developed other minerals |
| uranium drilling since about 1984 or 1985. "It's the | | | | projects in Australia. Mark Saxon, who will |
| only part of the nuclear cycle the Swedes are | | | | oversee Mawson's exploration in Sweden, |
| missing out on," Hudson told us. He hopes to bring | | | | discovered the Browns Tunnel zinc-lead project in |
| uranium mining back to Sweden. | | | | Tasmania. David Henstridge, a company director, |
| Mawson has focused its exploration/development | | | | discovered the Bigrlyi uranium project in Australia's |
| efforts in the northerly provinces. "Those are | | | | Northern Territory. |
| mining districts," said Hudson. "People are | | | | Another feather in the Mawson hat is their |
| comfortable with mining in that part of the world." | | | | financing. The world's richest man has invested in |
| In the past three years, three new mines have | | | | this Vancouver-based uranium company. No, not |
| been opened. Despite the latitude, Hudson | | | | Bill Gates. According to a June 30th Reuters news |
| explained, "Mines up there are running all year | | | | service report, the world's richest man is now |
| around." On that basis, Hudson began negotiating | | | | Ingvar Kamprad. Reportedly, Mr. Kamprad is now |
| for uranium properties in late 2003, before the | | | | allegedly worth about $6 billion more than Mr. |
| uranium bull market had gained traction. He began | | | | Gates. Haven't heard the name before? Kamprad |
| acquiring properties, previously drilled by the | | | | founded the furniture chain Ikea, which has more |
| Swedish government at a cost of $46 million in | | | | than 230 stores in 34 countries. According to |
| 1970s dollars. | | | | Hudson, Kamprad took part in the Mawson |
| The company plans further exploration on three | | | | private placement. Another familiar uranium |
| of its eight uranium properties. Upon announcing | | | | investor is the money management firm, Sprott |
| that the National Instrument 43-101 confirmed the | | | | Asset Management. |