FOR IMMEDIATE RELEASE TSX-V: HUD November 27, 2013 OTC: HUDRF NR2013-08
HUDSON COMPLETES COMMUNITY MEETINGS FOR THE WHITE MOUNTAIN PROJECT IN GREENLAND AND PROVIDES PROJECT UPDATE
Vancouver, BC – HUDSON RESOURCES INC. (the “Company”) – (TSX Venture Exchange “HUD”; OTCQX “HUDRF”) is pleased to announce that the Company conducted a series of community meetings in Greenland in November to provide local stakeholders and residents an update on the White Mountain project. The meetings were co-ordinated by Inuplan A/S, a Greenlandic consulting company, which is responsible for the Environmental and Social impact assessments. Inuplan has now completed the two years of baseline data collection that is required for the submission of an exploitation license application and mining permit.
During the visit, Hudson met with 19 groups in 7 communities. Meetings were held with local municipalities, service providers, hunters and fishermen and residents. The meetings we open to the public. The presentation from the meetings is available on Hudson’s website in Greenlandic and English.
James Tuer, Hudson’s President, stated, “We are very pleased with the support from both the local communities and the Greenland government for the development of the White Mountain project. The fact that the White Mountain project is essentially a rock quarry and dock facility, and the processing of material does not use any chemicals or even water, significantly reduces the environmental impacts. Many of the required job skills are already locally available and we expect that the majority of the jobs will be eventually filled by local Greenlanders.”
The key studies required for the submission of an exploitation licence and mining permit are on track for completion in early 2014. These studies include a bankable feasibility study, Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA). Both the EIA and SIA studies will be available to the public. The prefeasibility/feasibility study may not be made publically available in its entirety due to confidentiality issues and sensitivities during off-take agreement negotiations.
Processing of the 120 tonne anorthosite bulk sample extracted in 2012 has been completed with the expectation that the material will be used in a furnace trial test by a major E-Glass producer in January 2014. Larger samples have been requested by a number of E-Glass producers to test the material on a commercial scale as a key step to establishing off-take agreements.
Hudson is currently installing the necessary infrastructure at site to extract these larger bulk samples. To date, the first two kilometres of road access have been completed at site in Greenland. It is expected that it will take three months to complete the access road to the pit area. This would allow the extraction of much larger samples by the summer of 2014. Hudson hopes to have completed the permitting process for a mine exploitation license within this timeframe based on permit application submissions in Q1 2014.
Recently, the results from this summer’s 10 hole (575 meter) drill program and 125 m channel sample program were received. This drill target was approximately six kilometres from the furthest west target drilled to date where the 120 tonne bulk sample was extracted. The 2013 drill results confirm that the calcium feldspar plagioclase is of the same quality as previous results from the 2012 drill program, but it was determined that the consistency of the body, when looking at the inclusion of potential contamination from cross-cutting dikes, is not as attractive as the current resource outlined by Hudson in 2012. Therefore, the plan is to prepare the mining application for the original pit area where the120 tonne bulk sample was extracted.
In November, the Government of Greenland announced that it has lifted a 25 year old zero-tolerance policy towards radioactive elements. Hudson has two projects that will be positively impacted by this historic change. The Sarfartoq Carbonatite Complex contains two significant independent projects; the ST1 rare earth project, and the SU1 Niobium/Tantalum project.
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The ST1 Zone at Sarfartoq represents one of the industry’s highest ratios of neodymium and praseodymium to TREO, averaging 25%, based on the Company’s published 43-101 inferred mineral resource. As documented in the resource model, the ST1 Zone contains over 27 million kilograms of neodymium oxide and 8 million kilograms of praseodymium oxide, which are the key components in permanent magnets and the fastest growing sector of the rare earths industry. The ST1 Zone contains approximately 500 ppm thorium but only trace amounts of uranium.
The SU 1 Project, located approximately 10 km south of the ST Zone is focussed on a pyrochlore-rich lens discovered in the early 1990s by The Hecla Mining Company and briefly worked in the early 2000s by New Millennium Resources NL of Australia. Uranium abundance in this lens is directly related to pyrochlore abundance. Surface sampling of this lens by Hudson in 2008 (reported December 4, 2008, NR2008-10) confirmed high values of niobium (40.32% Nb2O5), uranium (1.02% U3O8), and tantalum (0.91% Ta2O5) together with elevated levels of rare earth elements (0.70% TREO)
Despite the fact that 96% of the potential SU1 rock value is allocated to niobium and tantalum, the high amount of uranium present in the pyrochlore-rich lens resulted in Hudson deferring any additional exploration until a decision to change the zero tolerance uranium policy had been made. Hudson will now review its options for advancing the project as more details on the uranium policy are made clear by the government. The Company has no interest in exploring the project for uranium as a primary element. The change in policy will also give the Sarfartoq rare earth project a clearer path to development.
White Mountain Project
The White Mountain Anorthosite project is owned 100% by Hudson and is located on the Company’s Naajat Exploration Licence. The project is 80km south-west from Kangerlussuaq, Greenland’s international airport, 80km south east from Sisimiut, Greenland’s second largest city and adjacent to tidewater on the Sondrestrom fjord. The White Mountain anorthosite deposit is unique in that it has high concentrations of aluminum, silica and calcium with low sodium. Based on work to date, Hudson has determined that the characteristics of this calcium feldspar rock has three potential high-value applications which are being investigated, as follows:
1. A new source of feedstock to the high-end fiberglass (E-glass) industry;
2. A new source of alumina to supply aluminum smelters
3. A new source of filler material. Fillers are a significant component of the plastics, paints and paper industries.
Hudson has entered into confidentiality agreements with a number of the key industry players in the E-glass and industrial mineral filler markets to investigate the application of this material to their product lines.
The Company is well financed with approximately $3 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.
ON BEHALF OF THE BOARD OF DIRECTORS
“James Tuer”
James Tuer, President
For further information:
James Tuer, President
Ph: 604-628-5002 or 604-688-3415 [email protected]
Suite 1460 – 1066 West Hastings Street Vancouver, B.C. V6E 3X1
Tel: (604) 628-5002 Fax: (604) 688-3452
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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