Vancouver, Canada-based, Hudson Resources Inc. (TSX-Venture:HUD) is focused on the acquisition, exploration, and development of diamond mineral properties and rare earth elements in West Greenland. The Company holds interests in 6 contiguous exploration licenses totaling approximately 1,800 square kilometers in the Sarfartoq region, near Kangerlussuaq, Greenland. Presently, Hudson has its primary focus on two of its 100%-owned, advanced projects, the Sarfartoq Carbonatite Project targeting Rare Earth Elements (“REE”) and the Garnet Lake Diamond Project. The Garnet Lake Project is located on the same archaean craton which hosts major diamond discoveries in Canada.
The Sarfartoq Carbonatite Complex encompasses a large area, with approximate dimensions of 11 kilometers by 9 kilometers. It is located near tidewater, excellent potential hydroelectric sites and is only approximately 60 kilometers from the Greenland International Airport. Through research of the Project, 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, with the majority of the land relatively unexplored.
With any exploration company, finances are critical. In Hudson’s case, the Company is well-financed with current working capital of approximately $3.5 million and sufficient funds to cover all exploration, general and administrative costs into 2011.
Yesterday, Hudson announced the discovery of a new zone of high-grade rare earth mineralization at the ST19 Zone, located nine kilometers south of the flagship ST1 Zone of its Sarfartoq Rare Earth Element Project. Five surface samples were previously collected over the zone that averaged 4.6% total rare earth oxides and recent drill holes, SAR10-22 and SAR10-23 produced results that reinforced the belief that the Sarfartoq Carbonatite Complex has unique potential to host multiple rare earth elements.
Highlights from the drill program included drill hole SAR10-22 showing 60m of 2.6% TREO, including 22m of 3.4%, and including 12m of 4.0% and drill hole SAR10-23 showing 60m of 2.2% TREO, including 24m of 3.6%, and including 14m of 4.9%. Additional drilling throughout the project also resulted in REE intercepts. Drill hole SAR10-25, located in the centre of the ST19 area, intercepted 12m of 2.3%, including 6m of 3.5% TREO. The other five holes, located 500 meters to the west of SAR10-25, intercepted varying amounts of mineralization up to 5.4% TREO over narrower intervals. The same was true for two holes drilled into the ST24 zone where surface samples generated multiple occurrences over 10% TREO. Results from the ST24 zone are still not conclusive at this point, but the large surface anomaly that is demonstrated in this area keeps it extremely high on the Company’s priority target list.
Hudson has identified several other drill-ready targets along the four-kilometer ST19 radiometric anomaly, but these will not be tested until drilling is started again in the Spring of 2011. Completing the 43-101 resource compliant resource model on the ST1 Zone and commencing metallurgical testing in that zone will take precedent over the additional drilling for the next several months.
With the price of rare earth elements on the rise and the demand being far greater than current supply levels driving prices even higher, this news for Hudson Resources is making the list for many investors as an addition to portfolios that are seeing the tremendous potential of rare earth and diamond stock plays.
