getting to look like a serious and ADVANCED bauxite play BAUXITE...

getting to look like a serious and ADVANCED bauxite play

BAUXITE (100%)
Hudson’s bauxite objective is to find and prove up high grade bauxite resources to be mined and transported to alumina plants at low cost.

Having identified the unique qualities of bauxite on the eastern seaboard of Australia and based on 2 years of studies of information and field work in eastern New South Wales and south-east Queensland, Hudson has selected and applied for tenements covering 5,346 sq kms of bauxite prospective ground.

Hudson’s focus is on bauxite deposits located close to existing transport and other infrastructure, close to coal mines, industrial centres and ports on the east coast of Australia.

Ten exploration licences have been granted, two have been
offered and five are still under application.

The tenements have been arranged in commercial development
zones, each associated with a major port

Gladstone/Brisbane;
• Newcastle; and
• Port Kembla.

Development Strategy
Hudson’s short term strategy is to define resources capable of producing some 1 million tonnes per annum of beneficiated bauxite product of premium quality to be sold to one or more customers on the east coast of Australia and / or overseas.

Cash flow will be available to further fund resource definition which is expected to be in the order of 300 million tonnes in the Newcastle Development Zone.
Based on surface sampling and drilling completed to date in EL 6997 at Inverell (the first tenement to be granted) we believe that our objectives are achievable.

More surface sampling and drilling will need to be undertaken to meet our objectives.

EL 6997 (Newcastle Development Zone)
Extensive and almost continuous outcrops of bauxite were
identified during field traversing during first stage exploration of EL 6997, the first tenement granted in NSW.
Typical outcrops of bauxite are in layers of between 3 and 12 metres (m) thick and extend in a semi-continuous manner for distances of up to 2 kms. These outcrops are found on the edges of low plateaus as well as on top of plateaus.
An initial wide spaced scoping drilling programme (total of 83 shallow holes for 1,600m) was completed during the first stage of exploration in 2008.

Based on results of these drill holes, the thickness of the bauxite layer is mainly in the 3 to 9 metre range; due to the small diameter drill used it is not possible to say reliably what the yield of bauxite from first stage of beneficiation by wet screening will be; in future a larger diameter drill will be used to extract larger,
more representative samples which will be the basis for
estimating resources.

A further drilling programme is planned for 2009 to prove up a JORC compliant resource on EL 6997.

Promising assay results have been obtained from samples taken from outcrops of bauxite.

Assays confirm the results of outcrop sampling which indicate that the bauxite layer has a thickness of the
order of 3–12m and that silica content is quite low.

Al2O3 Fe2O3 SiO2 LOI
Representative bauxite classification 30 – 46% 13 – 36% 3 – 12% 20 – 24%

Reactive silica assays have only been made on a few representative samples and results of less than 2 %
reactive silica have been obtained. In future all samples will be assayed for reactive silica.

Other exploration areas
On other tenements which have been granted only recently, surface sampling of outcrops and exposures of bauxite commenced and assays results of the first sets of samples indicate that quality and tonnage potential is similar to that in EL 6997. In particular it is encouraging to see that in some zone assays of surface samples indicate that reactive silica content is lower than 2% SiO2.

Results indicating commercial levels of Al2O3 with low raw silica levels are being confirmed and future drilling
programmes are being considered for these areas