Hudson Resources Inc.

Transcription

1 Hudson Resources Inc. Specialty and Rare Earth Metals Sarfartoq Carbonatite Complex West Greenland This presentation 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. While these projections and other statements represent our best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including the risk factors identified in Hudson s most recent and annual Management Discussion and Analysis. 1

2 Hudson Resources Inc. Ticker Symbol Last Closing Price Shares Outstanding Fully Diluted Market Capitalization Working Capital HUD TSX Venture $ ,091,266 47,946,266 $ 9,000,000 Fully Diluted $ 400,000 FOR FURTHER INFORMATION: Visit the Company s website at or contact James Tuer, President Ph: or at: tuer@hudsonresources.ca 2

3 Company Highlights! Since 2003, Hudson has been advancing the gem-quality diamond potential of it s Greenland properties! Awarded the inaugural Prospector and Developer of the Year award in 2009 by the Greenland Government! Established that the Garnet Lake Kimberlite Dike hosts large, high quality diamonds. Dike has significant tonnage potential as determined by seismic and drilling activities! Sarfartoq Carbonatite Complex has excellent potential to host economic amounts of niobium, uranium, tantalum and Rare Earth Elements! Experienced team with track record on Arctic projects! Extensive working knowledge of Greenland and excellent relationship with the government 3

4 Why Rare Earth Elements Now?! In-Situ potential value worth 10X + that of diamonds! Kimberlite >$100/t vs. REE > $250/t vs Nb/Ta/U > $1000/t! REE values were 3X higher last year and are expected to recover to above those values with increasing demand! Obtained access to 5+ years of historic work focused on the Sarfartoq Carbonatite. Good REE results but no follow-up due to lack of demand at the time! Huge increase in market awareness due to uses in green technologies and high tech applications 4

5 China Factor! Controls 95% of the worlds REE production and consumes 60%! Could consume 100% of domestic production by 2013 (Lifton)! Reducing production quotas and halted new exploration licenses for REEs until June 30, 2010! 15-25% export quotas now applied to REEs! Government now purchasing REE projects outside of China (Lynas - Mt. Weld, Arafura - Nolans)! Resource Capital Fund has recently purchased Mountain Pass (California) in order to be one of the few producers outside Chinese control. They also backed Great Western Minerals and acquired the Talison tantalum operations in Australia 5

6 REE Demand! REEs vital for the growth of the Green Economy! "REEs represent the first new Super Major bull market we have revealed in nine years" (Jim Dines May 22/09)! "Market for REEs in NA is around $1B - so growth should be hyperbolic" (Dines)! Demand for REEs is growing at approximately 9% per annum! REE demand to increase from 132,500t in 2008 to 207,500t (2- $3B) in 2009 (Dudley Kingsnorth)! Toyota plans to build 1M Prius' which would require 25,000 tonnes of REEs! Insufficient REEs available to support even a modest shift to hybrid vehicles 6

7 Neodymium! The principle REE required is neodymium; as used in neodymium-iron-boron permanent magnets; this is the key element, therefore, in determining the future value of any REE mining opportunity. (Lifton)! Neodymium is the most important REE. It makes up 25% of the value of REEs.! Projected that Nd demand by 2012 could contribute 50% of the total paid for all REE consumption.! Ongoing high demand for NdFeB magnets. Rare earth magnet alloys have grown from 12,000tpa in 2000 to 24,000tpa in At current rates of growth demand will be 55,000tpa by (Kingsnorth) 7

8 General Location! West coast of Greenland Greenland! Situated on the Arctic Circle Baffin Island Project Area Iceland! Open water shipping to the Davis Strait! Airport and harbour facilities within 60km of project area 8

9 Greenland vs Canada Cost Benefits (Compared to Northern Canadian Mines) Canadian Arctic Greenland! 5-7 years for permitting 1-2 years for permitting! Over 15 groups involved in permitting Only deal with one ministry! 6 week shipping window on ice roads All-year shipping via tide water! Harsh Arctic climate Ocean moderated climate! Expensive fuel costs Subsidized fuel by EU! Diesel generators only power option Planned hydroelectric installation! Extensive Aboriginal agreements required No Aboriginal land claims! Federal royalties on profits No royalties! Average 300km to nearest town 80km to international airport 9

10 Infrastructure Harbour Potential! Daily airport access within 60 kilometres! Community supportive of foreign investment for developing natural resources! Deep water access within 20 km of site! Year round access available for drilling and development SCC! Alcoa is planning to construct an Aluminum smelter on the coast with a 600MW hydroelectric power plant located within several km s of the Garnet Lake project! According to Greenland Home Rule, a harbour is planned for construction in Søndre Strømfjord at the mouth of Sarfartoq River 10

11 Greenland Tenement Map KANGERLUSSUAQ (SONDRE STROM) 20 minutes away by helicopter Metalex Diamond Prospect (3rd party) SARFARTOQ CARBONATITE COMPLEX PROTECTED AREA GARNET LAKE CAMP HUDSON EXPLORATION LICENCES (GREEN) HEADWATERS OF ALCOA 600 MW POWER PROJECT Fireice Diamond Prospect (3rd party) 100% interest in 6 Exploration Licenses totaling over 1,300 sq km 11

12 Sarfartoq Carbonatite Complex History - SU1! Discovered in 1976 by Danish government geologists using airborne radiometrics. Subsequent work by Hecla Mining and New Millennium Resources defined a high-grade niobium resource within a single pod of mineralization! 1986 government resource estimate of 100,000 tonnes of 0.5% U 3 O 8, 15% Nb 2 O 5, and 0.5% REE (Lanthanum-Neodymium). Insitu value of US$3,905/tonne (excluding any value for tantalum and REEs)! 2002 JORC compliant measured resource for this one pod was 23,478t of 8.51% Nb 2 O 5 to a vertical depth of 74 m! Hudson processed two surface samples in 2008 to help confirm earlier published results. They contained highly anomalous average values of niobium (38.0% Nb 2 O 5 ), uranium (1.01% U 3 O 8 ), tantalum (0.72% Ta 2 O 5 ) and REEs (0.67%) 12

13 Sarfartoq Carbonatite Topography 60% of the Carbonatite is outside the Protected Area Protected Area is Primarily in Valley Floor Previously Established Niobium/Tantalum/ Uranium/REE Deposit (SU1) Approximate Extent of Sarfartoq Carbonatite Complex 13

14 Sarfartoq Carbonatite Total Radiometrics Highly Anomalous Neodymium Zone (up to 1.9% Nd 2 O 5 in 4.4% TREO ) Potassium Anomaly - Secondary Core Zone? Previously Established Niobium/Tantalum/ Uranium/REE Deposit (SU1) Region of highly anomalous REE s 14

15 REE Samples vs. Nd Stream Sediments North West Radiometric Anomaly together with very high REE values Central Radiometric Anomaly together with High Neodymium REE s High Neodymium Samples collected from streams below the Northern Plateau 5 km Southern Anomalies related to High REE s and Radiometrics 15

16 REE Outcrop - North Central Sarfartoq! Potential high value REE samples were overlooked in the late 1990 s! Average TREO of 1.6% from 13 samples analyzed in 1998! Very high concentration of high value Neodymium/Praseodymium and Europium compared with typical deposits! Best six samples average 3.0% TREO - including 1.46% Neodymium Oxide, 0.03% Europium Oxide and 0.23% Praseodymium Oxide! Radiometric Anomaly surrounding samples measures 1,000m X 250m! TREO contained metal values averaging $260/mt 1,000 m (assuming 100% 250 m recovery at an average TREO of 1.6% at 2009 pricing)! $720/mt assuming best six samples at 2008 precrash pricing 16

17 REE Outcrop - North West Sarfartoq! Large Radiometric Anomaly measuring 35 hectares! Average TREO of 1.3% from 28 samples analyzed in 1998/99! Best ten samples average 2.8% TREO - only La, Ce and Nd analysed! Samples generally averaged 56% CeO 3, 23% Nd 2 O 3 and 21% La 2 O m >1% TREO! Three of the samples associated with elevated Uranium (1300ppm) averaged 8.2% Nb 2 O 3 and 0.1% Ta 2 O 3 >2% TREO 700 m >3% TREO 17

18 Sarfartoq Nb/Ta Stream Sediments Anomalous Niobium Samples Greater than Tantalum (typical pyroclore sample) Anomalous Tantalum Samples Greater than Niobium (atypical concentrations that need to be followed up) SCC Previously Established Niobium/Tantalum/ Uranium/REE Deposit (SU1) 18

19 Historical Sarfartoq Commodities! Niobium market has remained relatively robust through market downturn! Current Niobium (Nb 2 O 5 ) prices are in the range of US$10-14 per pound! IAMGOLD s Niobec mine generates $8/lb in operating margin from a 0.6% Nb 2 O 5 (13lb/tonne) underground operation! Current Tantalum (Ta 2 O 5 ) prices are estimated in the range of US$30-45 per pound! Uranium prices improving! Increased demand seen from hybrid car producers. Every Prius uses 20 kg of REE. Every $4 in Niobium reduces 100kg in steel weight for a car 19

20 Sarfartoq Carbonatite Current Government Position! In a referendum held in November 25, 2008, Greenland voted overwhelmingly in favour of more autonomy, paving the way for complete control of its mineral and petroleum resources some time after June 21, 2009! Currently there is a moratorium on uranium mining in Greenland due to Denmark s anti-nuclear stance. Current discussions are taking place in the parliament regarding the exploitation of uranium mining in Greenland! Hudson believes that formal approval for uranium extraction, at a minimum as a by-product to other mining activities, will be obtained! At a recent local town hall meeting 80% of the attendees were in favour of uranium extraction as a by-product! The recently appointed infrastructure minister is in favour of uranium mining 20

21 Timing of Activities! Field work to be initiated on June 20, 2009! Field work consists of sample and radiometric survey follow-up! Samples shipped to assay lab around July 6, 2009! Sample results expected by mid to late August! 4 to 6 week drill program to start late August or beginning of September, subject to financing! Drill results due by the end of the year 21

22 Directors/Management/Consultants James Tuer - President & Director; Background in engineering and business. Jim Cambon - VP Corporate Development; Background in geology and Arctic engineering projects at AMEC. Dr. John Ferguson - Director; Over 40 years mineral industry experience world wide, including Greenland. John Hick - Director; Has served in a senior capacity and/or on the board of directors of major mining companies. Robert Chase - Director; An accounting background with ver 30 years experience in financings and debt-equity financing. Dr. John A. McDonald - Consultant; He and his technical team were directly responsible for the discovery and development of the Snap Lake diamond deposit, acquired by De Beers for $480 million in Keith Durston - Consultant; Most recently he was the Chief Mining Engineer for AMEC Mining & Metals. Dr. Peter Le Couteur - Consultant; A mineralogist with significant experience working with carbonatites. Ex-Cominco Dr. Guy Della Valle - Consultant; Extensive Greenland exploration experience with a PhD in geology and mineralogy (University of Lausanne) 22

23 Summary! Two exciting projects with excellent upside potential! Sarfartoq Carbonatite has excellent potential to host economic amounts of REEs, niobium, uranium, tantalum! Greenland is an exceptional jurisdiction to explore and mine with a short time line to production! Large gem quality diamonds are hosted by the Garnet Lake dike. Seismic survey, drilling and trenching indicate the Garnet Lake dike has significant tonnage potential! Low shares outstanding and undervalued market cap to assets 23

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