VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 7, 2013) - HUDSON RESOURCES INC. (the "Company") - (News - Market indicators)(OTCQX:HUDRF) is pleased to provide an update on the progress of its White Mountain anorthosite project in Greenland.
Highlights:
- Drilling completed on a new anorthosite target closer to the port facility
- New milling test demonstrates ability to significantly reduce capital and operating costs
- 120 tonne bulk sample for pilot test in Europe to be completed this fall using new mill
- Infrastructure construction ongoing on site in anticipation of extraction of larger bulk samples
- Environmental and social impact studies nearing completion
- Prefeasibility study expected to be completed shortly
A 10 hole (575 meter) drill program and 125m channel sample program has been completed on a new target on the White Mountain project. The new drill area is 7 km along strike from the initial resource outlined in 2012, and is only 3 km from the area where the port will be built. If proven to be a resource this would further enhance the project economics.
Hudson completed surface sampling in May over this new target area. Fourteen plagioclase anorthosite (calcium feldspar) surface samples were collected which assayed an average of 31.86% Al2O3, 15.68% CaO, 2.35% Na2O, 47.69% SiO2, and 0.93% Fe2O3 confirming An80-85 Bytownite plagioclase. These assays are consistent with the requirements for the E-Glass industry. Drill core and channel samples have been flown to Canada for assaying in August. If the assays are in line with expectations, a new 43-101 resource estimate will be prepared for this new target area.
Processing of the 120 tonne anorthosite bulk sample extracted in 2012 is near completion. Hudson recently tested 1.6 tonnes of this sample in a Bradley Pulverizer mill in Pennsylvania, which pushed out the completion date of the bulk sample by several weeks. The purpose of the test was to determine the effectiveness of this mill (a centrifugal ring-roll type pulverizer) versus a ceramic lined ball mill for final milling of the material. Grinding trials with the Bradley Mill have been very positive with minimal iron pickup in the product. The results indicate that the application of the new mill will reduce operating costs significantly. The Bradley mills are also considerably less expensive than a ceramic ball mill, reducing the project capital cost. They also have a much shorter delivery time, which fits Hudson's project development schedule.
The plan is to send the processed material from this bulk sample to Europe this fall for testing in a furnace of a major fibreglass producer. Larger samples have been requested by some end-users 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.
The key studies required for the submission of an exploitation license and mining permit are on track for completion before the end of the year. 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.
James Tuer, Hudson's President, stated, "We are very pleased with how quickly the White Mountain project is progressing. This years field program is designed to determine if there are additional pit locations along the 7 km strike length of the body that will add to the resources already outlined, and to initiate the development of the infrastructure required to extract much larger bulk samples. To date, we have successfully demonstrated that the material is an excellent feed product for the E-Glass market and we have now found a more cost effective method for milling the material using conventional equipment. We recently met with three of the top four fiberglass producers in China. The interest is high and, as is the case in Europe and North America, price, quality and security of supply will be the key factors in securing adoption of the product. In addition, tests to determine if the material is also suitable for the production of alumina are ongoing and we expect to have some new results regarding this in the near future."
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:
- A new source of feedstock to the high-end fiberglass (E-glass) industry;
- A new source of alumina to supply aluminum smelters
- 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 $5.5 million in working capital.
Drill core is logged and sampled in the field and split core is shipped to Vancouver for processing at ALS. All samples are analyzed using lithium borate fusion, acid dissolution and ICP-MS analysis (ALS method: Whole rock ME-ICP06 and Elemental ME-MS81).
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, 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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