VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/15/15 -- HUDSON RESOURCES INC. (the "Company") (TSX VENTURE: HUD)(OTCQX: HUDRF) was informed on November 23, 2015 that the Corporate Finance Department of the B.C. Securities Commission (the "Commission") had selected Hudson for a technical disclosure review. As a result of that review, a number of disclosure deficiencies were identified.
On May 25, 2015, Hudson filed a Preliminary Economic Assessment (PEA) titled "Preliminary Economic Assessment (PEA) for Specialty Alumina Production from the White Mountain Anorthosite Deposit, West Greenland" dated March 30, 2015. It was determined that certain aspects of the PEA did not comply with the requirements of NI 43-101 and Form 43-101F1. As a result of the review, Hudson has filed an amended PEA titled "Amended Preliminary Economic Assessment (Amended PEA) for Specialty Alumina Production from the White Mountain Anorthosite Deposit, West Greenland" dated December 9, 2015.
The economics of the PEA have not been changed as a result of the review (See NR2015-1 dated March 30, 2015 "Hudson Reports Robust Preliminary Economic Assessment (PEA) for Specialty Alumina Production from the White Mountain Anorthosite Deposit"). The PEA is preliminary in nature and there is no certainty that the preliminary assessment and economics will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Issues raised by the Commission include:
-- The certificates of the four Qualified Person's responsible for the PEA
contained some technical errors and omissions with respect to the
responsibilities of each of the QP's. These have now been corrected in
the Amended PEA.
-- There were numerous references to the word "ore" in the report. Part
2.3(3) of the Companion Policy 43-101 CP to National Instrument 43-101
(the CP) notes the use of the word "ore" in the context of mineral
resource estimates to be potentially misleading because "ore" implies
technical feasibility and economic viability that should only be
attributed to mineral reserves. This has been corrected throughout the
Amended PEA.
-- The report mistakenly referred to a "probable reserve" as opposed to an
"indicated resource" in the Interpretations and Conclusions section of
the PEA. This has now been corrected in the Amended PEA.
-- The PEA did not contain the required cautionary language and appropriate
notes to the Mineral Resource Estimate. This has been corrected in the
Amended PEA.
-- The PEA contained CIM Definition Standards for resources that were out
of date. The Amended PEA has been updated to include the most recent CIM
Definition Standards dated May 10, 2014.
-- The PEA contained other statements which where potentially confusing
with respect to the processing plans and the end products produced for
sale. The PEA has been amended to make it clearer that the report is a
stand alone study to assess the economic potential of producing
specialty alumina and the co-products amorphous silica and calcium
silicate.
The Commission noted that the Company has in various press releases, presentations, and other forms of public disclosure discussed its plans on developing the White Mountain Project to mine anorthosite for the E-Glass (fiberglass) industry. Due to the commercially sensitive nature of the data when negotiating long-term purchase agreements, Hudson has chosen up to now to refrain from publishing a technical report.
The White Mountain project is 100% owned by Hudson through its subsidiary, Hudson Greenland A/S. The project is permitted for the production of high quality calcium feldspar anorthosite for the E-Glass (fiberglass) industry. Hudson plans on initiating and completing construction of the E-glass project in 2016.
In the absence of any preliminary economic assessment, pre-feasibility, or feasibility technical report and with no mineral reserves, as opposed to mineral resources, to support the permitted mining operation under development, the Commission requires additional disclosure on risk as per part 4.2(6) in the Companion Policy NI 43-101 CP (the "Instrument") to National Instrument 43-101.
As such, Hudson cautions the reader that where projects are put into production without first establishing mineral reserves, as opposed to mineral resources, supported by a technical report and completing a feasibility study such projects have historically had a higher risk of economic or technical failure.
Qualifications
Mr. John Goode, P.Eng. is a qualified person as defined by National Instrument 43-101 and is responsible for Sections 1 - 3, 13, 17.4 - 17.5, 18.5, 20.9, 21.1, 21.3 - 21.5, 21.8, 22, and 26 of the Amended PEA and has verified the disclosure in this release.
Ronald G. Simpson, B.Sc., P,Geo., President of Geosim Services Inc., is an independent Qualified Person as defined by NI 43-101 and is responsible for Section 14 of the Amended PEA and has verified the disclosure in this release.
Don Hains, P.Geo, is a qualified person as defined by National Instrument 43-101 and is responsible for Sections 1 - 3, 16, 17.1 - 17.3, 18.1 - 18.4, 20.1 - 20.8, 21.1, 21.2, 21.4 - 21.7 and 22 of the Amended PEA and has verified the disclosure in this release.
Dr. Michael Druecker is a qualified person as defined by National Instrument 43-101 and is responsible for Sections 1 - 12, 15, 19, 23 - 27 of the Amended PEA and has verified the disclosure in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
James Tuer, President
Forward-Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding the use of proceeds from the private placement, and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Hudson Resources Inc.
James Tuer
President
604-628-5002 or 604-688-3415
tuer@hudsonresources.ca
