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PROJECTS
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| Hudson has a 100% interest in 6 Exploration Licenses covering over 1,300 sq km. in West Greenland
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PROPERTY MAP
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SARFARTOQ RARE EARTH PROJECT
The Sarfartoq Carbonatite Complex is exposed over a large area, with approximate dimensions of 11 by 9 km. It is located near tidewater and adjacent to excellent potential hydroelectric sites.
Hudson has identified three high grade prospects, known as ST40, ST1 and ST19, all lying within the outer ring structure of the Sarfartoq Carbonatite. The outer ring structure is approximately 35km in circumference and remains largely unexplored.
Assay highlights of the 163 rock samples, taken from outcrop and sub-crop, include the following:
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Prospect ST40 assays averaged 3.6% TREO, including 1.8% neodymium oxide (Nd2O3) and 417ppm europium oxide (Eu2O3)
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Prospect ST19 assays averaged 2.5% TREO over the core of the anomaly
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25% of all samples assayed between 1.0% and 8.9% TREO (5 samples assayed between 5.0% and 8.9% TREO)
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50% of all samples returned anomalous REE assays (above 0.25% TREO)
A summary of the three primary target areas is as follows:
ST40 - is a well-defined radiometric anomaly measuring approximately 1000m by 250m. At the heart of the anomaly, nine sub-crop rock samples were collected within an area measuring 125m by 100m. Seven of the samples produced assays ranging from 2.5% to 5.3% TREO. The seven samples averaged 1.8% Nd2O3 (neodymium oxide) and 417ppm Eu2O3, (europium oxide), which are atypically high amounts for REE projects. The REE distribution of lanthanides for the seven sub-crop samples are: neodymium 46% > cerium 20% > praseodymium 8% > lanthanum 5%. The neodymium levels are highly elevated compared with typical levels of 10% to 15% found in other deposits.
Two rock samples located 1000m and 1400m west of ST40 (roughly half way between ST40 and ST1) averaged 0.9% TREO. These samples are intriguing because they also contain an average of 1.4% niobium oxide (Nb2O5). This area is predominantly under cover but warrants further exploration to determine potential continuity of mineralization between the two prospects. Niobium oxide currently trades for approximately US$25/kg.
ST1 - is a 1000m by 500m radiometric anomaly located 3km west of ST40. Both anomalies appear to be related and four samples taken between the two prospects yielded highly anomalous assays from 0.5% to 2.0% TREO. Within the ST1 anomaly, 49 individual widely spaced samples were collected. The TREO averaged 0.6%. Within a 250m by 150m sub-area, 15 samples averaged 1.0% TREO. The REE distribution is as follows: cerium 45% > neodymium 25% > lanthanum 15% > praseodymium 6%. The neodymium oxide proportion is twice the typical REE concentration, which is important since it is a more valuable REE mineral than either cerium or lanthanum.
A further six samples collected from abundant float in a creek bed at the centre of radiometric anomaly ST1 contained significant REE content with sample 16962 reporting the highest REE assay to date at 9.8% TREO.
ST19 - is located on the southern extension of the outer ring structure approximately 10km south of ST1 and ST40. It lies within a large radiometric anomaly approximately 2500m by 500m along a valley with excellent rock exposure. A 450m by 125m sub-area produced some of the highest REE assays of the program. The fifteen outcrop samples collected within this sub-area averaged 2.5% TREO. The best 6 samples averaged 5.4% TREO, including an average of 173ppm Eu2O3. The two highest samples from the program were found here. Located 110m apart, these samples contained 8.9% and 8.5% TREO. The REE distribution is as follows: cerium 47% > lanthanum 27% > neodymium 15% > praseodymium 5%.
About Neodymium:
One of the main uses of neodymium is in the production of neodymium-iron-boron super magnets, which are used in electric motors. As such, Neodymium is one of the more valuable rare earths, as it is a key component in motors for wind turbines, hybrid cars, and other green technologies. Neodymium oxide currently trades for approximately US$15/kg. Similarly, europium is amongst the least abundant of the rare-earth elements and is a critical component in flat panel display technology. Europium oxide currently trades for around US$500/kg.
Demand for neodymium has risen sharply with the growth in hybrid car production and power generation including wind turbines. Hybrid cars such as the Prius require 20 kilograms of REE. China recently announced a target of 100 gigawatts (100,000 megawatts) of wind power capacity by 2020. The most efficient turbines require approximately 1,000 kg of neodymium for each megawatt. China currently has about 12 gigawatt of capacity. This suggests substantial neodymium supplies will be required to meet ChinaÕs targets, let alone the rest of the world. Currently, over 95% of the global supply of REEs currently comes from China where exports are decreasing due to internal demand. As a result, end users are looking for alternative sources outside of China of which there are few.
Sarfartoq Project Historical Niobium Work
The Sarfartoq Project was initially explored by previous license holders for niobium. The niobium and tantalum pentoxides, are typically associated with the mineral pyrochlore. Historical reports filed with the Government of Greenland (all non NI43-101 compliant) include a trench grading 14.4% Nb2O5 over 200m and a diamond drill hole averaging 12.13% Nb2O5 over 20m starting near surface. In 2008, Hudson collected 2 large samples (approx. 15kg) of pyrochlore rich material from the location and recovered and average of 36.0% Nb2O3, 1.1% U3O8, and 0.7% Ta2O5. Uranium is directly associated with the niobium in the pyrochlore and is an effective prospecting tool used to identify other occurrences on the project area.
Hudson acquired all of the previous work on the project carried out by the previous owner, New Millennium Resources NL (ÒNew MillenniumÓ). New Millennium spent in excess of US$5 million evaluating the project and was advancing the niobium deposit to feasibility. Previous work, which only focused on the recovery of niobium from a single pod of pyrochlore mineralization, included advanced studies on mining and processing the niobium deposit. Bench-scale metallurgical test work, completed by Curtin University of Technology, Perth, Australia (2002-2003), demonstrated that recoveries of over 95% for niobium and uranium are achievable utilizing solvent extraction.
Niobium, which is corrosion resistant and has superconducting properties, is primarily used in the production of high-grade structural steel. Adding four dollars worth of niobium (less than half a kilogram) to a car frame will reduce the overall weight by 100 Kg due to its strengthening properties
GARNET LAKE DIAMOND PROJECT
Hudson Resources is the leader in diamond exploration in Greenland. Hudson has discovered an exciting diamond bearing kimberlite dike at Garnet Lake in Western Greenland. The Garnet Lake project is readily accessible and is located close to an international airport and is only 15km from tide-water providing the potential for cost effective, all season access. The site also has exceptional opportunities for hydroelectric power production.
Hudsons' licenses have the right ingredients for finding world class diamond mines including: highly diamondiferous kimberlite; a geotherm which is as cold or colder than that found in the Lac de Gras region (which hosts the Diavik, Ekati and Snap Lake mines); and a superior Kimberlite Indicator Mineral (KIM) data set with high concentrations of G10D and eclogitic garnets suggesting multiple highly diamondiferous sources exist.
In 2007 Hudson constructed a Dense Media Separation (DMS) plant on site at Garnet Lake to allow for the extraction and evaluation of large samples from the Garnet Lake dike and other diamond discoveries in the area.
The Garnet Lake kimberlite dike has produced numerous high quality, large diamonds from a series of bulk samples conducted between 2006-2008. The dike, which averages 2.5m in thickness, has been delineated over a strike length of 1.2 km and down-dip to 2.0 km.
Significant exploration activities were completed in 2008 which including the processing of 560 tonnes of Garnet Lake dike kimberlite through the on-site DMS plant and 4,000 meters of exploration drilling. Results of the bulk sample are expected before the end of the year. The 2008 program also extended the known strike-length of the Garnet Lake dike by 700 meters to over 2,000 meters, further demonstrating the excellent potential for sufficient tonnage to support an economic project. Drilling of targets outside of Garnet Lake successfully intercepted kimberlite in 12 of 15 drill holes.
Hudson is conducting a scaled down diamond program in 2009 to reflect the current health of the diamond market. The company has collected a 350kg sample, which will be sent to Canada for liberation testwork utilizing High Pressure Grinding Rolls (HPGR). Hudson hopes to be back on target to continue with the evaluation of the Garnet Lake dike in 2010, including the potential extraction of a larger bulk sample to allow the project to advance to the prefeasibility stage.
2008 Bulk Sample Program
The 2008 bulk sample program processed 499 dry tonnes of kimberlite through the CompanyÕs on-site DMS plant and yielded 78.26 carats. There were 23 diamonds in the 0.25 to 1.0 carat range, including an exceptional 0.95 carat amber coloured diamond. A high proportion of the diamonds recovered were high quality, inclusion free stones. The program was successful in liberating 80% more stones in the 0.10 to 0.25 carat range than in the 2007 sample. To date, over 108 carats have been recovered from the dike. This sample continues to demonstrate a coarse diamond distribution that suggests larger stones are likely to be found with larger sample sizes.
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