Hudson Resources Inc.
TSX VENTURE : HUD

Hudson Resources Inc.

August 09, 2005 09:30 ET

Hudson Continues to Intersect More Kimberlite and Identifies Additional Targets

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 9, 2005) - HUDSON RESOURCES INC. ("Hudson") (TSX VENTURE:HUD) is pleased to provide the following update to its 2005 exploration field program in Greenland. In July, Hudson concluded the balance of its 2,000m drill program, commenced in spring 2005, with the completion of six drill holes. Concurrently, the Company conducted a comprehensive ground prospecting program over its licence areas. Kimberlite was intersected in all holes and in particular the three holes drilled to the north-west of Garnet Lake (of which two have been submitted for analysis). A total of 556 kg of material derived of surface samples and drill core has been shipped for diamond and indicator mineral processing to the Geoanalytical Laboratories at the Saskatchewan Research Council ("SRC"), Saskatoon, Saskatchewan. Results are expected within six to eight weeks.

Hudson was successful in locating another area of kimberlite subcrop abundant in what appear to be pyrope and eclogitic garnets 12 km east-north-east of Garnet Lake. Two samples weighing 115.5 kg and 108 kg were collected 320m apart from each other and will be processed by caustic fusion for diamonds. As well, 2.7 km to the north, in a river drainage, a piece of kimberlite float was found which appears to have a texture compatible with derivation from a diatreme source rather than from the harder hypabyssal kimberlite found exclusively to date. The Company believes that the sample is local in origin due to the friable nature of the rock (i.e. it would have disintegrated beyond recognition had it travelled very far from its source). The Company is in the process of undertaking petrographic analysis of the sample to determine if it has been derived from a kimberlite diatreme. The significance of a diatreme is that if the source rock is found, it could represent a kimberlite pipe, blow or a larger dike structure. No geophysics has been completed over the area, other than a very regional government survey. Depending on the diamond results, completing a high definition geophysical survey will be a priority in the near future.

In the Garnet Lake area, two samples were collected which appear similar in nature to the diamondiferous kimberlite sample collected last summer. A 161.5 kg sample was collected 500m to the south of Garnet Lake. The sample was collected within a gully on strike with the Garnet Lake dike. Another 114.5 kg sample was collected 900m north-north-west of Garnet Lake coincident with drill hole 05DS23, where there was 6.1m of kimberlite within a 9.2m drill intersection. That drill hole intersected kimberlite similar in nature to the diamondiferous kimberlite from Drill holes 05DS07 through 05DS012 (see Hudson Press Release NR2005-5 dated July 4, 2005). As a result, Hudson has located kimberlite, which is abundant in pyrope and eclogitic garnets, over a 1400m length at Garnet Lake. Further drilling is required to better define the full extent of the body.

"We are very happy with the results of our summer program," stated James Tuer, president of Hudson. "The discovery of another area of very interesting kimberlite significantly adds to the prospects of our exploration licences. By mid-September, we should know whether they are as diamondiferous as the Garnet Lake samples."

Extensive sulphide mineralization was intersected in the two holes, 05DS19 and 05DS20, drilled on the EM conductor south of Spider Lake but at this time it is not considered economic. Preliminary assays processed by GEUS in Copenhagen using the Aqua Regia technique show only nominal levels of all elements other than platinum which was elevated to as much as 0.5g/t. These samples will be re-analysed by the SRC using tri-acid ICP analysis on each plus a 30g Pt, Pd, Au fire assay. The remaining hole, located 24 km north of Garnet Lake, tested a magnetic high target that intersected only minor kimberlite intrusives.

SRC GeoAnalytical Laboratories 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., is 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. Dr. John Ferguson has reviewed the program and this press release and is a qualified person under National Instrument 43-101.

BY ORDER OF THE BOARD OF DIRECTORS

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.


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