| At this time, uranium mining is banned in Sweden. | | | | drilling of fifty-five holes, which was done between |
| Will that soon change? In November 2005, Platts | | | | 1976 and 1979. The most promising of that drilling |
| carried a news item that the world's second | | | | may be the central zone, where thirty-five holes |
| largest uranium producer Cogema, a subsidiary of | | | | were drilled over a strike length of one kilometer. |
| Areva, was spending about 1.7 million euros on | | | | Another four kilometers, of what Mawson |
| prospecting in Sweden. The industry giant | | | | believes may be the host resource, remains |
| announced plans to narrow down mining sites, | | | | undrilled. This may be a near-surface opportunity, |
| after its initial prospecting. Krister Soederholm, | | | | possibly for open pit mining. Uranium mineralization |
| chief inspector of mining at the Ministry of Trade | | | | extends from three meters below the surface to |
| & Industry, told Platts that Sweden would | | | | at least 300 meters of vertical depth. |
| respond positively if Cogema's activity "would be | | | | We barely discussed the Flistjarn project during |
| of significant benefit to the country." Conscientious | | | | our phone conversation, except in passing. This |
| Sweden is still reeling from a recent media expose | | | | may be an area where Mawson may find an |
| showing that the country now imports a large | | | | Athabasca-style deposit, based upon how the |
| portion of its uranium from Kazakhstan, where | | | | company interprets the vein and |
| mining conditions are reportedly abysmal. | | | | unconformity-related mineralization hosted by a |
| On July 11th, one Canadian-traded uranium | | | | block of Paleozoic sediments thrust over |
| development company announced its NI 43-101 | | | | Precambrian volcanoes. First explored by the SGU |
| resource for three of its uranium properties in | | | | in 1977 as a way to determine if Sweden could |
| Sweden. We spoke with Michael Hudson, Chief | | | | be uranium-independent, it was financed by the |
| Executive of Mawson Resources (TSX: MAW; | | | | Swedish Nuclear Fuel Supply Company, SKBF. |
| Frankfurt: MRY), about the company's prospects. | | | | Mawson released results of grab and channel |
| First, he explained that Sweden hasn't had any | | | | samples in December 2005. |
| uranium drilling since about 1984 or 1985. "It's the | | | | According to Hudson, some of the samples have |
| only part of the nuclear cycle the Swedes are | | | | run up to 20 percent uranium. "Getting these |
| missing out on," Hudson told us. He hopes to bring | | | | shipped out of Sweden is a challenge, especially |
| uranium mining back to Sweden. | | | | with the high grade ones," he told us. "We have |
| Mawson has focused its exploration/development | | | | to wrap them in lots of lead, so a few kilos of |
| efforts in the northerly provinces. "Those are | | | | rock become 40 kilos of lead-covered boxes." |
| mining districts," said Hudson. "People are | | | | Nothing has been released on Flistjarn since the |
| comfortable with mining in that part of the world." | | | | values were announced, and the property was |
| In the past three years, three new mines have | | | | not mentioned in the recent NI 43-101 |
| been opened. Despite the latitude, Hudson | | | | announcement. |
| explained, "Mines up there are running all year | | | | Conclusion |
| around." On that basis, Hudson began negotiating | | | | Sweden should become an excellent test case for |
| for uranium properties in late 2003, before the | | | | a change in Australia's Three-Mines policy. |
| uranium bull market had gained traction. He began | | | | Sweden's September election could officially set |
| acquiring properties, previously drilled by the | | | | back the worldwide anti-nuclear movement and |
| Swedish government at a cost of $46 million in | | | | further change attitudes in the European Union. |
| 1970s dollars. | | | | This weekend's G8 Summit in St. Petersburg may |
| The company plans further exploration on three | | | | have already spurred emotions for a more |
| of its eight uranium properties. Upon announcing | | | | favorable climate toward nuclear energy. |
| that the National Instrument 43-101 confirmed the | | | | Uranium mining, the front end of the nuclear |
| company's uranium resources in Sweden, the | | | | cycle, is sometimes ignored in the greater scheme |
| same announcement confirmed the magnitude of | | | | of the nuclear renaissance. Yet, if a country hopes |
| the exploration target on its largest property, | | | | to become energy independent, it must cultivate |
| Tasjo. According to the company's website, "83 | | | | its domestic resources. Sweden, again, may |
| drill holes have been drilled... over an area of | | | | become a test case on this point as well. One of |
| approximately 10 kilometres by 20 kilometres." | | | | the key points, which caught our eye about |
| It's a vast target, between seven and ten | | | | Mawson Resources, and the primary reason we |
| kilometers, to explore. Hudson said, "We're going | | | | discussed the company's prospects at length was |
| to put a few thousand meters into that in | | | | its technical team. To be taken seriously, a |
| September or October." The company plans to | | | | country's mining officials want to know the |
| spend about C$2 million of its C$9 million further | | | | personalities behind the company. As did we. |
| exploring its properties over the next 12 to 18 | | | | Unlike many other companies we've reviewed, |
| months. | | | | Mawson assembled a proven mining team. At the |
| Previous government exploration at Tasjo wasn't | | | | top is Andrew Browne, who was the Competent |
| as structured as many of today's mining | | | | Person to sign off on Australia's Jabiluka uranium |
| companies would like. "A lot of it (the tonnage) | | | | project, as well as the team leader for the |
| hasn't been counted," Hudson told us. "We went | | | | discovery of the Ranger 68 uranium deposit in |
| through the data in cardboard boxes. The data | | | | Australia's Northern Territory. He's not alone on |
| hadn't been out of the boxes since the mid | | | | this team who has been credited with an |
| 1970s, and the last drilling was done in the 1980s." | | | | exploration discovery. CEO Michael Hudson |
| Hudson said his team plans to set up a grid and | | | | discovered the Portia copper-gold project, also |
| methodically drill it out, as opposed to how it was | | | | having delineated and developed other minerals |
| drilled before. The prize could be enormous as | | | | projects in Australia. Mark Saxon, who will |
| some historical estimates ran as high as 116 million | | | | oversee Mawson's exploration in Sweden, |
| pounds of U3O8 at Tasjo. But, those figures | | | | discovered the Browns Tunnel zinc-lead project in |
| require modern exploration for regulatory | | | | Tasmania. David Henstridge, a company director, |
| compliant verification. Hudson emphasized, | | | | discovered the Bigrlyi uranium project in Australia's |
| "Because of how the work was done, we're not | | | | Northern Territory. |
| happy to quote those resources." | | | | Another feather in the Mawson hat is their |
| While the drilling may have been less methodical, | | | | financing. The world's richest man has invested in |
| Hudson praises the Swedes for their storage | | | | this Vancouver-based uranium company. No, not |
| capabilities, "The Swedes claim they've got the | | | | Bill Gates. According to a June 30th Reuters news |
| largest core yard in the world." For the past | | | | service report, the world's richest man is now |
| seven years, Hudson rented a house in Sweden in | | | | Ingvar Kamprad. Reportedly, Mr. Kamprad is now |
| the same town where the core shack is located. | | | | allegedly worth about $6 billion more than Mr. |
| "This is all professionally stored in huge | | | | Gates. Haven't heard the name before? Kamprad |
| warehouses, all recorded and registered," he | | | | founded the furniture chain Ikea, which has more |
| explained. "At your request, they will pull out the | | | | than 230 stores in 34 countries. According to |
| core with forklifts." According to Hudson, the data | | | | Hudson, Kamprad took part in the Mawson |
| is all there, about 98 percent (or more) of the drill | | | | private placement. Another familiar uranium |
| databases, including the assays and surveys. | | | | investor is the money management firm, Sprott |
| "We've got the data, and our people are scanning | | | | Asset Management. |
| and inputting the data," he added. | | | | As Hudson told us, "There's less technical risk with |
| We talked about the other uranium properties, | | | | our projects, but more political risk. People want |
| some of the better of which could have as much | | | | to punt on the political change, essentially." This |
| as 30 million pounds of uranium oxide. "The better | | | | may well come about after September 17th. And, |
| project, from a short-term perspective is | | | | if it doesn't? "We have a couple of backup plans," |
| Klappibacken," Hudson noted. Historical estimated | | | | Hudson told us. Mawson has been looking |
| were compiled by the Swedish Geological Survey | | | | eastward at Finland, a country which soon plans |
| (SGU) in 1984, when the property was last | | | | to bring online the EU's first new nuclear reactor. |
| explored. Thirty-two drill holes were completed in | | | | And there is another European country with an |
| an area about the size of a football field. The | | | | advanced uranium project, with which Hudson is |
| recent Canadian regulatory approved report | | | | currently undergoing negotiations. By the way, |
| showed an indicated resource of about two million | | | | having started as a gold exploration company, |
| pounds. This was considered to be a minimum | | | | Mawson also has a few gold properties, eight of |
| because uranium mineralization was still open | | | | which have been farmed out to another junior |
| laterally and at depth. Hudson was excited about | | | | exploration company. Mawson may be preparing |
| the Klappibacken property, "It's over $100 per ton | | | | for the worst, but could be celebrating a political |
| in uranium value. It's wide and thick from surface. | | | | victory in Sweden come the end of September. |
| We're trying to get something up to prefeasibility." | | | | COPYRIGHT © 2007 by StockInterview, Inc. |
| The Duobblon property confirmed previous SGU | | | | ALL RIGHTS RESERVED. |