Hudson Commences 10,000m Rare Earth Drill Program in Greenland
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/10/11 -- HUDSON RESOURCES INC. (the 'Company') (TSX VENTURE: HUD)(OTCQX: HUDRF) is pleased to announce the commencement of the 2011 drill program at the company's Sarfartoq Rare Earth Element (REE) Project in Greenland. The objective of the program is threefold: (i) upgrade the resource at the ST1 Zone from the 'inferred' category to the 'indicated' category; (ii) expand the size of the ST1 deposit; and (iii) test several additional REE targets within the Sarfartoq Carbonatite Project.
James Tuer, Hudson's President, stated, 'We are very excited about the start of the 2011 field season. We expect that this drill program will allow us to upgrade and expand our flagship ST1 Zone from inferred to indicated resources which is a prerequisite to initiating a pre-feasibility study later this year. In advance of this, the preliminary economic assessment report is planned for completion by the third quarter of this year.'
Hudson plans on completing a minimum 10,000m of drilling in 2011. One drill is currently operating with a second scheduled to start in two weeks. Approximately 5,000m is planned to be carried out in May and June at the ST1 Zone as infill drilling. Additional holes will also seek to expand the resource which is currently open in all directions. The remaining drilling will test additional targets along the ring structure of the Sarfartoq carbonatite, such as at ST19 where Hudson intercepted 22m of 3.4% total rare earth oxide ('TREO') (drill hole SAR 10-22) and 14m of 4.9% TREO (drill hole SAR 10-23) and at ST40 target which has a unique neodymium content at 46% of TREO. The drill program is expected to be completed by September. The drill core will be sent in batches to ALS Chemex in Vancouver for assaying. Results are expected throughout the summer.
Hudson has produced an initial NI 43-101 resource estimate for the Company's ST1 Zone, which defined 14.1M tonnes averaging 1.51% total rare earth oxides (TREO) using a cutoff of 0.8%. The ST1 Zone contains one of the industry's highest ratios of neodymium and praseodymium to TREO, at 25%. Currently, the ST1 inferred resource contains over 40 million kilograms of neodymium oxide, which is the key component in permanent magnets and the fastest growth sector of the rare earths industry. Neodymium oxide is currently quoted at over US$220/kg, FOB China, and at over US$100/kg, within China, according to www.metal-pages.com.
The Sarfartoq REE project is located within 20 km of tidewater and only 60 km from Greenland's international airport. The project is owned 100% by Hudson. The Company is well financed with approximately $18 million in working capital.
Dr. Michael Druecker is a Qualified Person as defined by National Instrument 43-101 and reviewed the preparation of the scientific and technical information in this press release in respect of the Sarfartoq REE Project. Ronald G. Simpson, B.Sc., P,Geo., President of Geosim Services Inc., is an independent Qualified Person as defined by NI 43-101 and is responsible for the resource estimate on the ST1 Zone.
ON BEHALF OF THE BOARD OF DIRECTORS
James Tuer, President
Forward-Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding plans for the completion of a financing and the intended terms and use of proceeds thereof, and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
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Contacts:
Hudson Resources Inc.
James Tuer
President
604-628-5002 or 604-688-3415
(604) 688-3452 (FAX)
tuer@hudsonresources.ca