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Hudson Reports High Aluminum Recoveries at Greenland White Mountain Project

HUDSON RESOURCES INC. (the "Company") is pleased to announce the following update on the metallurgical testwork program for aluminum leaching extraction from its White Mountain anorthosite (calcium feldspar) project in Greenland. Alumina production is one of three potential revenue streams Hudson is analysing for the White Mountain project.

The testwork is being undertaken at SGS Canada Inc.'s Lakefield facility under the direction of Hudson's consulting metallurgist, John R. Goode, P.Eng. Initial testwork using hydrochloric acid (HCl) has demonstrated the high solubility of the anorthosite material at normal atmospheric pressure and relatively low temperatures. Aluminum recoveries ranged from 89.7% to 93.7%. The highest recovery was achieved at a temperature of 110 Celsius and an HCl strength of 30%. The White Mountain anorthosite rock averages approximately 30% aluminum oxide (Al2O3) and 1.25% iron oxide (Fe2O3).

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 silica and calcium by-products. Testwork is expected to be completed in the second quarter.

James Tuer, Hudson's President, stated, "We are very excited with these initial leach results which demonstrate that recoveries in excess of 90% aluminum can be achieved using standard technologies and under moderate conditions. The high solubility of our White Mountain Anorthosite, which is unique to high calcium feldspars, makes it an excellent candidate for potential alumina production. As well as containing high aluminum, its low iron content should help reduce processing costs. With Alcoa proposing an aluminum smelter in Greenland and three smelters currently operating in Iceland, we are well positioned to provide alumina to end users if we can provide it at a competitive price compared to conventional alumina being produced from bauxite using the Bayer process. It may also be possible to provide an added benefit by utilizing the 15% calcium in the rock to capture CO2 and thereby lower greenhouse gas emissions, which is a key objective of the aluminum industry."

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 industrial applications:

  1. As a new source of alumina to supply aluminum smelters;
  2. As a new source of feedstock to the high end fiberglass (E-glass) industry; and
  3. 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. A resource model is expected to be completed within the next month. Processing of a 122 tonne bulk sample is expected to start shortly 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.

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 geological information in this press release.

John R. Goode is the Qualified Person as defined by National Instrument 43-101 who reviewed the preparation of the scientific and technical metallurgical information in this press release.


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