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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 30, 2013) - Hudson Resources Inc. (the "Company") (News - Market indicators)(OTCQX:HUDRF) is pleased to announce the first NI 43-101 compliant mineral resource estimate for its 100% owned White Mountain anorthosite (calcium feldspar) project in Greenland. This resource estimate outlines an indicated resource of 27.4M tonnes together with an inferred resource of 32.7 M tonnes. The resource parameters and 2.50% sodium (Na2O) cut off are based on the feedstock requirements needed for the E-Glass (fiberglass) industry. E-Glass is a high value product that is high in aluminum, silica and calcium and requires low sodium and iron and no other impurities. The resource remains open in all directions.
|Table 1. Mineral Resource Estimate|
||Na2O Cut Off1
|1 Note: Cut-Off means all material is below the grade specified of Na2O. The sensitivity of the model to an increase in Na2O to a 3% cut off is included to show that the resources remains within E-Glass specifications. |
The resource estimate is classified as Indicated and Inferred Mineral Resources as defined by CIM and referenced in NI 43-101. A Technical Report for this resource estimate will be filed on SEDAR within 45 days. The resource estimate was prepared by GeoSim Services Inc. of Vancouver.
James Tuer, Hudson's President, stated, "We are very pleased with our initial resource estimate for the White Mountain anorthosite deposit. This resource estimate demonstrates that we have already outlined a significant amount of anorthosite despite having only drill-tested a very small portion of our target area. The low sodium content, as noted in this resource estimate, makes it an ideal candidate for the E-glass (fibreglass) market, and we will soon be providing processed bulk sample material to potential end users in the E-glass industry for testing in their furnaces. As previously disclosed, the high solubility and low iron content of our anorthosite also makes it an excellent candidate for potential alumina production. With this resource model in hand, and metallurgical test-work expected to be completed in the next few months, we will commence a prefeasibility study for a project to supply the E-glass market and will work to rapidly advance the project under Greenland's streamlined permitting process. We expect to submit an application for an exploitation license in early 2014."
The mineral resource was estimated using the inverse distance squared method. Block dimensions were 25 metres by 25 metres horizontal and 10 metres vertical. Grade estimation was based on analyses of core samples from 14 vertical core holes (1088 metres in total) completed in 2012. Drill holes were spaced approximately 100 metres apart on a rectangular grid and extended between 50 and 100 meters below surface. Oxide analyses were composited in five metre down-hole intervals. It was concluded from statistical analysis of the raw sample data that grade capping or special treatment of outliers was not warranted.
Blocks were considered as potentially economic if they were within an area mapped as being >90% anorthosite and containing less than 2.5% Na2O. Almost all blocks exceeding this level of Na2O were at the base of the model and would not have to be removed to access the other material. No other cut-off criteria were used as all blocks were within the anorthosite and are considered potentially economic.
Blocks were classified as 'Indicated' if they were within the bounds of the drill grid or within 50m of the boundary. Blocks were classified as 'Inferred' if they did not meet requirements for 'Indicated' and were located up to 100 meters beyond the drill pattern.
White Mountain is a weakly metamorphosed calcic anorthosite composed of nearly monomineralic high-calcium plagioclase (bytownite An80-85) with minor amounts (less than 1%) of clinozoisite and muscovite. The anorthosite body is lenticular in shape with an east-northeast structural trend, covering a surface area of over 20 square kilometers.
Hudson plans to commence additional Diamond drilling starting in June of this year with the objective of adding additional tonnes and upgrading the resource to the measured resource category from the indicated resource category which will be included in the the application for an exploitation license.
Hudson's White Mountain anorthosite is relatively unique in that it has high concentrations of aluminum, silica and calcium, with little to no contaminants and low iron. Hudson has determined that the White Mountain anorthosite has three potential high-value industrial applications:
- As a new source of alumina to supply aluminum smelters;
- As a new source of feedstock to the high end fiberglass (E-glass) industry; and
- As a new source of filler material. Fillers are a significant component in the plastics and paints industries.
Hudson commenced exploration on the White Mountain Project in January 2012 and has completed over 4,300 meters of drilling in 45 drill holes at White Mountain. Processing of the 122 tonne bulk sample has been initiated at the Saskatchewan Research Council's pilot plant in Saskatoon. Based on bench scale testing, the material requires minimal processing: crushing, grinding, magnetic separation and milling. The processed bulk sample material will be provided to potential end users in the E-glass industry for testing in their furnaces. The Company has also initiated baseline environmental studies with the objective of submitting an application for a mining license in early 2014.
As reported in the Company's press release dated January 23, 2013 (NR2013-02), aluminum leaching testwork has begun at SGS Canada Inc, with initial leach recoveries of 94% of the aluminum being achieved. Downstream testwork on leach solutions is ongoing and includes aluminum chloride precipitation, alumina production and acid regeneration testing. Once this testwork is completed, Hudson will initiate a scoping study to determine the preliminary economics of producing an alumina product and potential by-products, including silica and a calcium compound.
The White Mountain Project is owned 100% by Hudson. The Project is located on tidewater approximately 40 km from the Company's 100% owned rare earth element (REE) project. White Mountain is envisioned as an open pit mining operation similar in scope to a quarry. 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.
Ronald G. Simpson, B.Sc., P,Geo., President of Geosim Services Inc., is an independent Qualified Person as defined by NI 43-101 and is responsible for the resource estimate on White Mountain and has verified the data disclosed in this release.
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.