FOR IMMEDIATE RELEASE Trading Symbol: HUD
June 29, 2010
HUDSON REPORTS INITIAL RARE EARTH DRILL RESULTS FOR 2010 FIRST HOLE IN ST1 ZONE INTERSECTS 150M OF 1.7% TREO
NR2010-08
Vancouver, BC – HUDSON RESOURCES INC. (“Hudson” – TSX Venture Exchange “HUD”) is pleased to announce that it has completed the first phase of the 2010 drill program and has received assay results for the first 8 of 19 holes from the Sarfartoq Rare Earth Element (REE) Project in Western Greenland. Hudson completed 4,808m of drilling on the ST1 and ST40 rare earth zones in a period of six weeks, ahead of schedule and under budget. The remaining 11 holes are in Vancouver awaiting REE analysis at ALS Chemex. Nine of these remaining holes were drilled into the ST1 zone.
Highlights
150m of 1.7% TREO1. in Hole SAR10-08 from 207m to 357m
ST1 •
• Including: 22m of 2.0% TREO from 207m to 229m
26m of 2.4% TREO from 285m to 311m
12m of 2.5% TREO from 321m to 333m
- The hole averaged 1.0% TREO for 344m from 35m to 379m (end of hole)
- Neodymium oxide averaged 22.5% of the TREO over the entire length of the hole
ST40 •
- Numerous 0.5 to 3m zones of +1.00% TREO (refer to spreadsheet on Company’s website)
- 5.0m of 0.8% TREO (21.7% Nd2O3:TREO) and 0.14% Nb2O5 from 58m to 63m at SAR10-02
- 5.5m of 1.3% TREO (26.2% Nd2O3:TREO) from 105.5m to 111m at SAR10-03
- 22m of 0.4% TREO (43.5% Nd2O3:TREO) from 95m to 119m at SAR10-05
- Neodymium oxide averaged 30.2% of the TREO for all samples assayed at ST40Note 1. Total Rare Earth Oxides (TREO) refers to the elements lanthanum through lutetium expressed as oxides in the form REE2O3.
James Tuer, Hudson’s President, stated, “We are very pleased with these initial results. Hole SAR10-08, which is the first of 10 holes drilled into the ST1 zone this year, was significantly mineralized over the entire length of 379m, of which 150m averaged 1.7% total rare earth oxides. We are looking forward to receiving the assay results for the next 9 drill holes from ST1 since many of these holes intersected significant zones logged as “carbonatite 1”, the same description as the 150m intersection from SAR10-08. These early results, along with results from the 2009 drill program, continue to support our belief that the ST1 zone has the potential to host a significant REE deposit.”
“The exploration drilling at the ST40 zone primarily tested geophysical targets within 600m of the zone. The results continue to demonstrate that the area hosts significantly elevated neodymium with respect to total rare earths. Additional drilling is required to better define larger zones of higher grade mineralization as it is a complex system with significant hydrothermal fluid penetration.”
Complete results can be downloaded in an excel spreadsheet from the Company’s website at www.hudsonresources.ca. A sample list for each intersection collected is included. In most cases, only intersections that had obvious alteration and/or carbonatite REE veining were collected for assay. A preliminary model from the ST1 location that shows the lithology of drill holes superimposed with all TREO analyses so far available can also be downloaded from the website. Drilling to date does not yet allow an estimation of the dimensions of this REE-bearing carbonatite body and, as such, no estimation of true thickness from the drill holes has been interpreted by the Company.
Suite 1460 – 1066 West Hastings Street Tel: (604) 628-5002 Vancouver, B.C. V6E 3X1 Fax: (604) 688-3452
Each Drill hole (SAR10-01 to SAR10-07) contains REE mineralization
The second phase of drilling will commence in August and will comprise approximately 2,000m of drilling. Drilling will focus on further defining the ST1 body with the objective of developing an inferred resource model. Drilling will also test a number of REE targets along the 32km ring structure of the Sarfartoq Carbonatite, which remains largely untested. The initial 3 holes were drilled on a lake to test “gravity-high” anomalies. However, based on the results, it now appears that the magnetic low areas that are coincident with radiometric anomalies, represent the priority drill targets going forward. The Company is currently conducting reconnaissance activities to further evaluate additional drill targets.
Metallurgical testwork will commence in the last quarter of 2010. Limited mineralogical work to date on 20 samples suggests the rare earths are present in carbonatite as the REE-fluorocarbonate minerals bastnasite- (Ce), synchysite-(Ce), synchysite-(Nd) and minor monazite-(Ce). Bastnasite is the principal ore mineral at the Mountain Pass REE Mine in California.
Drill holes SAR10-09 to SAR10-19 have been logged, sampled and approximately 3,530kg of split core has arrived in Vancouver for processing at ALS Chemex. Results are expected by the end of July. A strict QA/QC program is being followed which includes the use of elemental standards, duplicates and blanks. Significant drill intersections are being split in the field with half of the core being sent to ALS Chemex and the remaining half left on-site for future reference. All samples are analyzed using lithium borate fusion, acid dissolution and ICP-MS analysis (ALS method ME-MS81h). According to ALS Chemex, this procedure solubilizes most minerals, including refractory species, and provides the most quantitative analysis for many elements, including the rare earth elements.
The Sarfartoq rare earth project is located within 10km of tidewater and only 60km from Greenland’s international airport. The project is owned 100% by Hudson. The Company is well financed with current working capital of approximately $5 million and sufficient funds to cover all exploration and G&A obligations into 2011.
Dr. Peter Le Couteur 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 drilling from the Sarfartoq REE Project.
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]
This news release contains “forward-looking information”, which may include, but is not limited to, statements with respect to the future financial or operating performance of Hudson and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Hudson to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Hudson disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither 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.
Suite 1460 – 1066 West Hastings Street Tel: (604) 628-5002 Vancouver, B.C. V6E 3X1 Fax: (604) 688-3452