Hudson Reports High Grade Rare Earth Assays From 2012 Drill Program On the Sarfartoq Project in Greenland
January 21, 2013 (Source: Marketwire) — Hudson Resources Inc. (the “Company”) (TSX VENTURE:HUD)(OTCQX:HUDRF) is pleased to announce the 2012 drill results for the Sarfartoq light rare earth element (“REE”) project in Greenland. A total of 5,555 meters of diamond core drilling was completed in connection with rare earth exploration and development. Nineteen holes were drilled in the vicinity of the ST1 Zone resource. The other four were exploration holes drilled on the south side of the carbonatite at the ST24 target. Complete drill results are presented in Table 2 below and a map of the drill locations will be available on the Company’s website.
2012 Drill Program Highlights:
- Sixteen drill holes surrounding and infilling the ST1 Zone resource area contained high-grade intersections including:
- 6 meters of 6.05% TREO (SAR12-03)
- 6 meters of 4.91% TREO (SAR12-01)
- 8 meters of 4.61% TREO (SAR12-15)
- 6 meters of 4.34% TREO (SAR12-15)
- Wide zones of neodymium mineralization at ST1 continue to demonstrate the high proportion of neodymium that has been outlined in the resource.
- Drill results confirm continuation of high-grade mineralization at depth.
James Tuer, Hudson’s President, stated, “We are very pleased with the results from our 2012 drill program. We have continued to demonstrate that the mineralization extends to the northeast and have intersected some of our highest-grade material as we move in that direction. Drilling to the south confirmed that the mineralization continues at depth with a high ratio of neodymium to total rare earth oxides at 23%. We expect that these results will increase the overall grade and tonnage of the resource when they have been incorporated into the resource model.”
“Going forward, our efforts at the ST1 Zone will focus on defining the metallurgical flow sheet as we have already outlined a sufficiently large and potentially economic deposit. We expect to have our flow sheet completed by the end of the second quarter of this year. This is a relatively low-cost exercise but it is critical in demonstrating the viability of a REE deposit.”
“The bulk of the Company’s capital budget for 2013 will be focused on our White Mountain anorthosite project, where the Company has made substantial progress in a relatively short time. We expect to have significant updates on this project over the next several months.”
The ST1 Zone at Sarfartoq represents one of the industry’s highest ratios of neodymium and praseodymium to TREO, averaging 25%, based on the inferred resource. Based on the latest 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.
|Table 1: 2012 High-Grade Intercepts of Neodymium and Praseodymium Oxide.|
|ST1 North Extension|
|Note 1. The 2012 drill holes at ST1 were generally drilled at an azimuth of approximately 310 degrees and a dip of between 45 and 65 degrees. As a result, true widths are estimated to be 80% to 95% of reported intersections. An estimate of the true width for holes SAR12-01, 02, 04, 05, and 19 can not be determined until the resource has been updated.|
|Note 2. These results were previously published on September 24, 2012.|
|Note 3. Neodymium Oxide (Nd2O3) currently trades for $82.50/kg and Praseodymium Oxide (Pr2O3) trades for $90/kg FOB China (ref: Industrial Minerals on line, January 15, 2013).|
|Table 2: Complete 2012 Sarfartoq Drill Results|
|SAR12-09||ST-24||No significant results|
|SAR12-11||ST-24||No significant results|
|SAR12-14||ST-24||No significant results|
|SAR12-15||ST-1 North Extension||90.00||100.00||10.00||3.42%||16.0%||5.47|
|SAR12-16||ST-1 S||Failed to reach target depth|
|SAR12-17||ST-1 S||Failed to reach target depth|
|SAR12-18||ST-1 North Extension||38.00||40.00||2.00||2.28%||17.3%||3.93|
|SAR12-19||ST-1 North Extension||46.00||52.00||6.00||3.11%||17.6%||5.25|
|SAR12-23||ST-1 Infill: Hole abandoned after 23m due to mechanical failure|
|Note: All measurements are in meters. 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.|
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Drill core was logged and sampled in the field and split core was shipped to North Vancouver, BC for processing at ALS Canada Ltd. 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 ALS Chemex 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 20 km of tidewater and only 60 km from Greenland’s international airport at Kangerlussuaq. The project is owned 100% by Hudson. The Company remains well financed with approximately $7 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.
ON BEHALF OF THE BOARD OF DIRECTORS
James Tuer, President
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.
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