Hudson Resources Inc.

Hudson Resources Inc.

October 12, 2007 10:20 ET

Hudson Provides Fall Update on 2007 Greenland Diamond Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2007) - HUDSON RESOURCES INC. ("Hudson") (TSX VENTURE:HUD) is pleased to provide the following update on its 2007 diamond exploration and bulk-sampling program in Greenland.

Highlights include:

- On-site dense media separation plant has commenced operation.

- A large tonnage of kimberlite has been extracted and stockpiled for processing.

- Drilling continues to confirm continuity of the Garnet Lake dike.

"Hudson has undertaken a very aggressive program this year and has been successful in meeting all of its primary targets," stated James Tuer, President. "Construction of the new "Dense Media Separation" diamond recovery plant has been completed and kimberlite is currently being processed from a stockpile of 300 to 500 tonnes that has been mined and placed adjacent to the plant. The plant has a three-stage crushing circuit with a five-tonne per hour operating capacity. Initial results indicate that a 3% heavy mineral concentrate is achievable. The plant is currently processing around 2.5 tonnes/hr while generating a 6% concentrate in this early start-up phase. Importantly, having the operating plant and all heavy equipment on site will allow us to hit the ground running in the spring of 2008 when we expect to take a much larger bulk sample as we continue to evaluate the economics of the Garnet Lake dike and surrounding targets."


Hudson has now commissioned the dense media sampling plant on site and is processing kimberlite from the Garnet Lake dike. The plant is being operated by DRA Americas Inc. which also designed and supplied the plant. Mineral concentrate produced in the plant is being placed in locked containers and will be shipped to Canada in November for final processing and diamond picking. Several hundred tonnes of kimberlite has been extracted from the dike and has been stockpiled outside of the plant for processing. The total amount of material to be processed in 2007 will be determined in the next few weeks prior to the full onset of winter. The processing involves producing a concentrate of material from an initial kimberlite sample that has been crushed to a minus 12.0mm size fraction. All tailings will then be re-crushed to a minus 6.0mm size fraction and reprocessed through the plant.


During the summer, Hudson mobilized overland to site two 25 tonne excavators, a Tamrock air drill and a seven tonne primary jaw crusher. A planned tracked dump truck with a 10 tonne carrying capacity failed to reach the site due to equipment failure immediately after disembarkment from the fjord. As a result, both excavators were used to transport kimberlite as well as for excavation. This resulted in the extraction of less kimberlite than originally planned and necessitated collecting all the kimberlite from one location. Hudson is well set up to expand the pit area in 2008 and extract additional tonnage from other locations along the Garnet Lake dike as identified by the recent drill program.

Photographs of the Garnet lake site showing the plant and bulk sample extraction are available on the Hudson website at (search under 2007).


In 2007, Hudson completed 4,500m of core drilling on its exploration licences. The program was operated by Cartwright Drilling Inc. of Goose Bay, Labrador.

Delineation drilling on the Garnet Lake dike continued this year with a total of 12 holes drilled from nine different setups within 500m of the Garnet Lake discovery pit where the 2006 and 2007 bulk samples have been extracted. Kimberlite, interpreted as being part of the diamondiferous Garnet Lake dike, averaged 2.5m estimated true thickness over a 3.1m interval of core in these drill holes. These intersections are consistent with earlier drill results from the area and demonstrate the continuity of the dike. Drill hole, 07DS26 located 850m north of the pit, had numerous kimberlite intersections including 2.2m over 2.9m, 1.2m over 1.2m, 1.8m over 2.6m, and 1.8m over 3.9m. Samples were collected and are being submitted for analysis. Assuming positive results from the bulk sample program, a significant definition drill program will be required in 2008.

Exploration drilling was also undertaken on the Nilalik target area, located 12km east of Garnet Lake to further evaluate diamondiferous kimberlite discovered at this location in 2005. Previously, two samples were collected that contained a significant number of diamonds, the largest being a fragment measuring greater than 2mm in one dimension (see press release NR2005-10). Drilling at the same sample locations has confirmed numerous kimberlite intersections in four drill holes (two holes per setup). The best kimberlite intersection measured 3.3m in thickness within a 3.8m drill intersection. Other examples of contiguous intersections of kimberlite measure 2.1m, 2.0m, 1.8m, and 1.6m. Samples have been submitted for analysis and a follow-up drill program is being considered for 2008.

One of the objectives of the 2007 drilling program was to evaluate new geophysical exploration targets located on the north side of the Sondre Strom fjord, approximately 35km northwest of Garnet Lake. Twelve of the drill holes had narrow intersections of kimberlite. The most significant intersection was 1.2m in drill hole 07DS01. Drill holes 07DS12 and 07DS13 intersected a kimberlite dike with intersections of 0.70m and 0.86m, respectively. Kimberlite boulders were also found at the location of these drill holes. Samples have been collected for evaluation.

Samples that are being tested for diamonds and kimberlite indicator minerals are being shipped to SRC GeoAnalytical Laboratories, which is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests. Dr. Mark Hutchison, Trigon GeoServices Ltd., was in charge of the exploration program and is responsible for the collection of the samples in Greenland and managed the chain of custody from the field to the SRC. Jim Cambon, VP Corporate Development, is in charge of the collection of the bulk sample and is managing the chain of custody of the concentrate from the field to Canada. Dr. John Ferguson reviewed this press release and is a qualified person under National Instrument 43-101. Hudson currently trades on the TSX Venture Exchange under the symbol "HUD". The company has 30,571,266 shares outstanding and is well funded for the completion of the 2007 program and activities in the first half of 2008.


James Tuer, President

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information