Yes, excellent report - already they've done some testing and...

Yes, excellent report - already they've done some testing and grades are very good for the "White" bauxite 54-56%. They are already talking about being an "employer", development of mining operation LEADING TO UPSTREAM PRODUCTION FACILITIES - that must mean involvement in a smelter? I wonder if their alliance with Ashapura Group will reveal a possible jv in upstream production? Ashapura are known to favour gibbsitic variety of bauxite.

Very exciting times for HRS holders.........................

Bauxite Strategy on Track

“Hudson Resources’ bauxite strategy is well on track. The strategy embraces the identification of a commercially viable bauxite mineralisation, development of a mining operation leading to upstream production facilities.

“Promising results from assay analysis are now to hand and an extensive exploration and drilling programme in a highly prospective area north of Inverell has been
finalised for 2009.

“We see considerable social and communal benefits emanating from our bauxite strategy by becoming a significant local employer. We will maintain high standards of occupational health and safety and intend to be recognised as a responsible corporate citizen through our close links and co-operation with local government and
community stakeholders.”

Peter Meers, CEO, Hudson Resources Limited

EL 6997 is located approximately 20 km north-west of Inverell, in north eastern New South Wales. The licence consists of 99 units and covers an area of approximately 297 sq km.

Subsequent to the grant of EL 6997 the company has
undertaken extensive ground exploration to determine
the nature, extent and quality of bauxite deposits on
the company’s exploration licence.

Results warrant drilling programme Extensive and almost continuous outcrops of bauxitic laterite have been Identified during field traversing and assays from samples are sufficiently encouraging to warrant a drilling programme to assess the potential for economically significant tonnages.

Typical outcrops of bauxite are in layers of between 3
and 12 metres (m) thick and extend in a semicontinuous
manner for between 0.25 and 1 km in length. These outcrops are found on the edges of low pateaus.

Drilling program to assess commercial viability
A drilling programme in the area north of Inverell has been planned and will commence early 2009. The objective of the programme is to identify and then measure a JORC compliant bauxite resource.

Based on visual observations and assay results for the first 47 of 251 samples from bauxite outcrops received to date, the bauxite can be classified as follows:
Al2O3 Fe2O3 SiO2 LOI

‘white’ bauxite 54 - 56 % 7 - 8% 3 - 8% 26 - 27%
‘red’ bauxite 30 - 46 % 13 - 36% 3 - 12% 20 - 24%

Bauxite outcrop
An example of ‘white’ bauxite
Sample NE 59: 56 % Al2O3, 8 % Fe2O3, 3% SiO2,
27% LOI

Loss on Ignition (LOI) values and historic mineralogical
reports indicate that gibbsite is the main alumina mineral in the Inverell bauxite district. New mineralogical studies will be undertaken to confirm this.

The advantage of gibbsite is that alumina can be extracted at lower temperature and thus at a lower cost than it can be extracted from boehmite.

Reactive silica and available alumina are also very
important quality parameters, and selected samples will
be submitted for specialised chemical analysis.

The drilling program will be finalised once results for all
samples submitted for assay are received. Drilling will be
focussed on ‘white’ bauxite zones because of their higher alumina and lower iron content.

Additional ground has been applied for adjacent to EL
6997 (ELA 3579) over ground with a similar geological
setting.

Professional and experienced team
Hudson Resources has assembled a highly professional
and experienced geological team for its bauxite Exploration program. It is led by Jacob Rebek, a leading
Australian geologist, with over 40 years experience in
mineral exploration, including bauxite exploration; and
Andrew White also with over 40 years experience in mineral exploration, including bauxite exploration (Andrew is a former Chief Geologist of Comalco).

Brisbane based Geo Discovery Group has been engaged
to manage and support an exploration program, notably
drilling and geophysical testing, to define zones with
thickest accumulations of bauxite.