First resource for Hudson Resources’ Sarfartoq

Vancouver – Hudson Resources (HUD-V) has rallied after releasing an initial resource estimate for its Sarfartoq rare earth project in Greenland.

The company, which had previously focused its explorations on diamonds in the area, concluded a 19-hole, 4,700-metre drill program in September on the Sarfartoq carbonatite complex. The project sits in southwestern Greenland near tidewater, and covers over 1,300 sq. km within 6 explorations licenses.

The inferred resource outlines 14.1 million tonnes grading 1.51% total rare earth oxides in the ST1 Zone, using a 0.8% TREO cut-off grade. The resource includes 40.6 million kilograms of neodymium oxide, which is used to produce neodymium-iron-boron magnets.

In the specific resource breakdown, lanthanum graded 0.32%, Cerium 0.76%, praseodymium 0.09%, neodymium 0.03%, samarium 0.03%, gadolinium 0.02% while europium, dysprosium and yttrium came in at trace amounts. Within the resource, the ratio of neodymium and praseodymium to TREO came in at 25%.

The resource remains open along strike and down dip and the company notes that the ST1 Zone is but one of several with established rare earth potential within its concession.

The company expects metallurgical test-work to be completed within the first half of 2011 and to initiate a preliminary economic assessment sometime this year.

Along with rare earth prospects, the company’s concessions host the Garnet Lake diamond project.

Hudson’s stock price climbed 14¢ the day the news was released to close at $1.78, then fell 9¢ the next day to $1.69. The jump followed a quick climb from $1.36 in days prior as China released more news about restricting exports of rare earth elements. The company hit a 52-week low of 46¢ in early July and has 61 million shares outstanding.