Correction: Hudson Reports Additional High Grade Assays at Greenland Rare Earth Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/03/11 -- Marketwire issues a correction for the press release disseminated earlier today at 9:10 AM ET. An incomplete version of the press release was disseminated in error. The full, corrected and complete press release follows:
HUDSON RESOURCES INC. (the 'Company') (TSX VENTURE: HUD)(OTCQX: HUDRF) is pleased to announce the 2011 Phase Two drill results for the Sarfartoq rare earth element project in Greenland. Phase Two drilling included 4,888m of infill and step out drilling at the ST1 Zone where the Company has outlined a 43-101 compliant inferred resource of 14.1Mt at 1.5% TREO. An additional 1,858m of exploratory drilling was also completed peripheral to ST1. A further 1,450m of drilling was completed in the ST19 area located approximately 9km southeast of ST1. Complete drill results are presented in Table 3 below. In total 16,514m over 71 holes were drilled this year. In addition, a 5 tonne metallurgical sample was collected from surface.
2011 Phase Two Highlights:
-- Fourteen holes at the ST1 Zone intercepted high-grade intervals assaying
from 2.07% TREO to 6.49% TREO - averaging 3.6% TREO over 10.5m. In
total, the 2011 drill program had 19 high-grade intercepts (minimum 10m)
averaging 13m of 3.3% TREO.
-- The highest grade intercept to date of 6.5% TREO over 8m was drilled at
the north end of the ST1 Zone - well outside of the current resource
model.
-- Wide zones of mineralization at ST1 include 60m of 2.7%, 74m of 2.2% and
66m of 2.0% TREO.
-- An ST19 intercept of 56 m of 2.76% TREO including 14.0 m of 3.53% TREO.
-- New high-grade system discovered 900m to the north east of the ST1 Zone
in hole SAR11-50 with 14.0m of 3.3% TREO including 4.0m of 7.2% TREO.
Table 1: 2011 Phase Two High-Grade Intercepts at the ST1 Zone
Intersection
Hole ID From (m) To (m) (1)(m) TREO Nd2O3/TREO
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SAR11-36 192.0 198.0 6.0 2.84% 14.5%
---------------------------------------------------------------------------
SAR11-37 304.0 316.0 12.0 3.11% 19.8%
---------------------------------------------------------------------------
SAR11-38 198.0 202.0 4.0 4.28% 14.7%
---------------------------------------------------------------------------
SAR11-40 36.0 48.0 12.0 2.82% 16.9%
---------------------------------------------------------------------------
SAR11-42 150.0 158.0 8.0 3.36% 16.5%
---------------------------------------------------------------------------
SAR11-44 52.0 62.0 10.0 2.68% 16.0%
72.0 82.0 10.0 2.70% 16.5%
---------------------------------------------------------------------------
SAR11-45 28.0 44.0 16.0 2.91% 17.3%
70.0 84.0 14.0 4.76% 14.9%
---------------------------------------------------------------------------
SAR11-56 158.0 166.0 8.0 3.85% 14.4%
---------------------------------------------------------------------------
SAR11-58 254.0 276.0 22.0 3.95% 15.8%
---------------------------------------------------------------------------
SAR11-62 134.0 142.0 8.0 4.91% 14.2%
---------------------------------------------------------------------------
SAR11-64 192.0 198.0 6.0 3.72% 16.3%
---------------------------------------------------------------------------
SAR11-66 154.0 166.0 12.0 3.68% 15.0%
---------------------------------------------------------------------------
SAR11-69(2) 152.0 164.0 12.0 2.07% 26.8%
---------------------------------------------------------------------------
SAR11-71 134.0 142.0 8.0 6.49% 13.7%
---------------------------------------------------------------------------
Note 1. The 2011 drill holes at ST1 were generally drilled at an azimuth of
310 degrees and a dip of between 45 and 65 degrees. As a result, true widths
for holes SAR11-36, -42, and SAR11-64 are estimated to be 95% to 80% of
reported intersections, respectively. An estimate of the true width of the
other holes can not be determined until the resource has been updated.
Note 2. This intersection was added due to the very high proportion of
neodymium in the sample.
James Tuer, Hudson's President, stated, 'We are very pleased with the results from our 2011 Phase Two drill program. We have now demonstrated that the mineralization extends to the northeast and have intersected some of our highest grade material as we move in that direction. A step out hole almost a kilometer north of ST1 intercepted some of our highest grade material to date and confirms the exploration potential of this largely untested Sarfartoq carbonatite. Now that all of our 2011 drill results are in we will be working towards preparing an updated resource model in the coming months. Based on this years results, we expect to be able to move resources from the inferred to indicated category and increase the overall grade of the resource.'
The Preliminary Economic Assessment (PEA), which is being carried out by Wardrop, a Tetra Tech Company, is now expected to be completed in the next two weeks. Metallurgical test-work is ongoing at Hazen Research in Colorado and the Saskatchewan Research Council in Saskatoon. The metallurgical studies are being conducted under the direction of John Goode, P. Eng. John has extensive experience in the rare earth industry in North America and China.
The distribution of individual rare earth oxides as a percentage of the total rare earth oxides from the Phase Two results are documented in Table 2. The results for the ST1 Zone are consistent with previous assay results and demonstrate a high proportion of neodymium oxide to total rare earth oxides. Note that the gross amount of neodymium oxide is approximately the same at each location which is important since Hudson currently anticipates developing the resource primarily as a neodymium mine. Neodymium prices remain robust with neodymium oxide currently quoted at US$240/kg, FOB China, and at US$145/kg, within China, according to www.metal-pages.com.
Table 2: Distribution of Rare Earths in Phase Two Samples
Average
Area Width TREO La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
ST1-CARB 31 1.7% 23.3% 50.0% 5.4% 17.6% 1.7% 0.4%
ST1-E-CARB 7 2.1% 28.2% 49.3% 4.8% 14.3% 1.4% 0.3%
ST19-CARB 15 3.0% 33.1% 48.2% 4.1% 11.8% 1.1% 0.2%
Area Gd2O3 Tb2O3 Dy2O3 Y2O3 Other Total
------------------------------------------------
------------------------------------------------
ST1-CARB 0.9% 0.1% 0.2% 0.4% 0.0% 100.0%
ST1-E-CARB 0.9% 0.1% 0.2% 0.4% 0.0% 100.0%
ST19-CARB 0.7% 0.1% 0.2% 0.5% 0.1% 100.0%
Note: 'CARB' refers to carbonatite the Company has identified as likely to
be mineralized based on lithology.
Table 3: Complete 2011 Phase Two Drill Results
Ele- Azimuth Dip
vation Depth (deg- (deg-
Hole ID Area Easting Northing (m) (m) rees) rees)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SAR11-36 ST-1 485368 7378442 657 214 310 -70
SAR11-37 ST-1 485160 7378155 643 360 310 -65
SAR11-38 ST-1 485368 7378442 657 269 310 -75
SAR11-39 ST-1 485091 7378223 635 262 310 -70
SAR11-40 ST-1 485188 7378340 647 192 310 -50
SAR11-41 ST-1 485091 7378223 635 192 310 -45
SAR11-42 ST-1 485217 7378372 646 189 310 -45
SAR11-43 ST-1 485139 7378314 642 252 310 -50
SAR11-44 ST-1 485217 7378372 646 116 120 -60
SAR11-45 ST-1 485217 7378372 646 153 120 -80
SAR11-46 ST-1 east 485331 7378675 667 207 180 -55
SAR11-47 ST-1 east 485745 7378835 671 214 180 -55
SAR11-48 ST-1 east 485735 7378857 675 246 315 -55
SAR11-49 ST-1 east 485331 7378675 667 240 0 -55
SAR11-50 ST-1 east 486258 7378784 682 244 315 -55
SAR11-51 ST-1 east 485098 7378702 688 311 90 -60
SAR11-52 ST-1 east 485921 7378567 676 259 315 -55
SAR11-53 ST-1 485324 7378541 603 76 130 -45
SAR11-54 ST-1 485324 7378541 603 256 130 -55
SAR11-55 ST-1 south 485760 7378252 676 137 220 -45
SAR11-56 ST-1 485324 7378541 603 207 130 -70
SAR11-57 ST-19E 489119 7370340 590 143 150 -75
SAR11-58 ST-1 485222 7378369 646 311 44 -49
SAR11-59 ST-19E 489119 7370340 590 198 0 -90
SAR11-60 ST-19E 489119 7370340 590 217 15 -82
SAR11-61 ST-19E 489320 7370398 589 238 224 -50
SAR11-62 ST-1 485252 7378419 646 166 130 -75
SAR11-63 ST-19E 489012 7370290 524 210 10 -50
SAR11-64 ST-1 485361 7378381 687 229 315 -63
SAR11-65 ST-19 Gorge 488101 7370498 553 299 215 -80
SAR11-66 ST-1 485322 7378452 647 174 225 -85
SAR11-67 ST-19 Gorge 488008 7370552 556 232 250 -75
SAR11-68A ST-1 485568 7378397 677 18 310 -45
SAR11-68 ST-1 485568 7378397 677 366 310 -50
SAR11-69 ST-1 484980 7378285 550 372 179 -54
SAR11-70 ST-1 485044 7377993 626 314 310 -73
SAR11-71 ST-1 485377 7378547 611 214 57 -80
Intersection Nd2O3/
Hole ID Area From (m) To (m) (m) TREO TREO
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SAR11-36 ST-1 192.0 198.0 6.0 2.84% 14.5%
---------------------------------------------------------------------------
SAR11-37 ST-1 260.0 326.0 66.0 1.96% 19.5%
incl. 272.0 286.0 14.0 2.54% 16.4%
incl. 302.0 318.0 16.0 2.88% 19.5%
incl. 304.0 316.0 12.0 3.11% 19.8%
---------------------------------------------------------------------------
SAR11-38 ST-1 140.0 146.0 6.0 2.00% 15.7%
and 192.0 204.0 12.0 1.97% 15.5%
incl. 198.0 202.0 4.0 4.28% 14.7%
---------------------------------------------------------------------------
SAR11-39 ST-1 148.0 204.0 56.0 1.51% 23.0%
incl. 154.0 180.0 26.0 1.73% 21.9%
and 232.0 252.0 20.0 1.00% 23.6%
---------------------------------------------------------------------------
SAR11-40 ST-1 18.0 48.0 30.0 1.67% 17.8%
incl. 36.0 48.0 12.0 2.82% 16.9%
---------------------------------------------------------------------------
SAR11-41 ST-1 90.0 104.0 14.0 1.53% 22.2%
and 124.0 134.0 10.0 0.89% 27.8%
---------------------------------------------------------------------------
SAR11-42 ST-1 5.7 28.0 22.3 1.09% 17.0%
and 150.0 164.0 14.0 2.61% 16.9%
incl. 150.0 158.0 8.0 3.36% 16.5%
---------------------------------------------------------------------------
SAR11-43 ST-1 28.0 46.0 18.0 1.86% 17.7%
and 60.0 80.0 20.0 1.34% 21.7%
and 148.0 188.0 40.0 0.77% 25.1%
---------------------------------------------------------------------------
SAR11-44 ST-1 28.0 92.0 64.0 1.44% 16.7%
incl. 52.0 62.0 10.0 2.68% 16.0%
incl. 72.0 82.0 10.0 2.70% 16.5%
---------------------------------------------------------------------------
SAR11-45 ST-1 16.0 90.0 74.0 2.15% 17.5%
incl. 28.0 44.0 16.0 2.91% 17.3%
incl. 36.0 44.0 8.0 4.04% 15.4%
incl. 66.0 86.0 20.0 4.15% 15.4%
incl. 70.0 84.0 14.0 4.76% 14.9%
---------------------------------------------------------------------------
SAR11-46 ST-1 east 148.0 154.0 6.0 2.32% 15.5%
and 190.0 194.0 4.0 3.33% 14.9%
---------------------------------------------------------------------------
SAR11-47 ST-1 east 103.0 109.0 6.0 1.62% 14.3%
---------------------------------------------------------------------------
SAR11-48 ST-1 east 106.0 121.0 15.0 1.23% 15.9%
---------------------------------------------------------------------------
SAR11-49 ST-1 east 16.0 22.0 6.0 1.32% 15.8%
and 40.0 44.0 4.0 1.55% 16.8%
---------------------------------------------------------------------------
SAR11-50 ST-1 east 206.0 220.0 14.0 3.26% 13.0%
incl. 206.0 210.0 4.0 7.15% 12.3%
incl. 216.0 218.0 2.0 5.90% 12.0%
---------------------------------------------------------------------------
SAR11-51 ST-1 east 282.0 286.0 4.0 1.74% 18.5%
---------------------------------------------------------------------------
SAR11-52 ST-1 east 203.7 204.9 1.2 5.46% 13.9%
---------------------------------------------------------------------------
SAR11-53 ST-1 No Significant intersections over 2m
---------------------------------------------------------------------------
SAR11-54 ST-1 48.0 58.0 10.0 1.04% 17.0%
and 166.0 178.0 12.0 1.06% 18.5%
---------------------------------------------------------------------------
SAR11-55 ST-1 south No Significant intersections over 2m
---------------------------------------------------------------------------
SAR11-56 ST-1 148.0 166.0 18.0 2.08% 15.4%
incl. 158.0 166.0 8.0 3.85% 14.4%
---------------------------------------------------------------------------
SAR11-57 ST-19E 32.0 54.0 22.0 3.04% 12.6%
incl. 32.0 46.0 14.0 3.62% 11.8%
---------------------------------------------------------------------------
SAR11-58 ST-1 30.0 132.0 102.0 0.87% 16.6%
incl. 104.0 110.0 6.0 1.85% 16.5%
incl. 126.0 132.0 6.0 1.66% 15.5%
and 232.0 292.0 60.0 2.65% 16.3%
incl. 252.0 288.0 36.0 3.53% 16.0%
incl. 254.0 276.0 22.0 3.95% 15.8%
---------------------------------------------------------------------------
SAR11-59 ST-19E 46.0 50.0 4.0 4.90% 11.3%
and 76.0 132.0 56.0 2.76% 12.5%
incl. 82.0 104.0 22.0 3.74% 10.5%
and 108.0 122.0 14.0 3.53% 11.9%
---------------------------------------------------------------------------
SAR11-60 ST-19E 54.0 58.0 4.0 2.20% 11.3%
---------------------------------------------------------------------------
SAR11-61 ST-19E Not Sampled
---------------------------------------------------------------------------
SAR11-62 ST-1 60.0 144.0 84.0 1.69% 17.3%
incl. 102.0 112.0 10.0 2.21% 19.0%
incl. 130.0 144.0 14.0 4.04% 15.0%
incl. 134.0 142.0 8.0 4.91% 14.2%
---------------------------------------------------------------------------
SAR11-63 ST-19E No Significant intersections over 2m
---------------------------------------------------------------------------
SAR11-64 ST-1 172.0 214.0 42.0 1.58% 17.2%
incl. 192.0 198.0 6.0 3.72% 16.3%
---------------------------------------------------------------------------
SAR11-65 ST-19 Gorge 272.0 274.0 2.0 3.56% 12.9%
---------------------------------------------------------------------------
SAR11-66 ST-1 144.0 170.0 26.0 2.34% 15.8%
incl. 154.0 166.0 12.0 3.68% 15.0%
---------------------------------------------------------------------------
SAR11-67 ST-19 Gorge 16.5 18.5 2.0 4.56% 13.9%
---------------------------------------------------------------------------
SAR11-68A ST-1 Not Sampled
---------------------------------------------------------------------------
SAR11-68 ST-1 316.0 320.0 4.0 1.65% 15.7%
---------------------------------------------------------------------------
SAR11-69 ST-1 136.0 182.0 46.0 1.37% 24.4%
incl. 152.0 164.0 12.0 2.07% 26.8%
and 258.0 268.0 10.0 1.65% 20.3%
and 350.0 360.0 10.0 2.04% 19.5%
---------------------------------------------------------------------------
SAR11-70 ST-1 No Significant intersections over 2m - Hole
terminated prior to targeted mineralization
---------------------------------------------------------------------------
SAR11-71 ST-1 128.0 144.0 16.0 3.96% 14.3%
incl. 134.0 142.0 8.0 6.49% 13.7%
---------------------------------------------------------------------------
Note: All measurements are in metres. Elevation is height above sea level.
All elements reported by Actlabs are in parts per million (ppm) and have
been converted to % oxide. Total Rare Earth Oxides (TREO) refers to the
elements lanthanum through lutetium plus yttrium expressed as oxides in the
form REE2O3.
Drill core was logged and sampled in the field and split core was shipped to Ancaster Ontario for processing at Activation Laboratories Ltd. (Actlabs). A strict QA/QC program was followed, which includes the use of elemental standards, duplicates and blanks. In cases where the entire hole was not sampled, only significant drill intersections of carbonate mineralization were sampled. Core was split in the field with half of the core being sent to Actlabs and the remaining half stored on-site for future reference. All samples were analyzed using lithium borate fusion, acid dissolution and ICP-MS analysis.
The Sarfartoq REE project is located within 20km of tidewater and only 60km from Greenland's international airport. The project is owned 100% by Hudson. The Company is currently well financed with approximately $13 million in working capital.
The ST1 Zone at Sarfartoq represents one of the industry's highest ratios of neodymium and praseodymium to TREO, totaling 25%, based on the inferred resource. The ST1 Zone 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.
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.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Hudson Resources Inc.
James Tuer
President
604-628-5002 or 604-688-3415
604-688-3452 (FAX)
tuer@hudsonresources.ca
www.hudsonresources.ca