Hudson reports robust Preliminary Economic Assessment (PEA) for specialty alumina production from the White Mountain anorthosite deposit

HUDSON RESOURCES INC. is pleased to announce the results of the Preliminary Economic Assessment ("PEA" or "Study") for the primary production of specialty grade alumina using White Mountain anorthosite as feedstock. The study was managed by John Goode, P.Eng. and incorporated the work of Arithmetek (Mike Dry), Hains Engineering (Don Hains), TAK Industrial Mineral Consultancy (Ted Dickson), and the 43-101 resource filing dated January 30, 2013 (Ronald G. Simpson, P.Geo.). Note that all currencies are denominated in US dollars and tonnages are stated as metric tonnes.

The purpose of the study was to evaluate the economics of producing specialty grade alumina utilizing the anorthosite rock from Hudson's White Mountain project. The deposit is a monomineralic calcium aluminum silicate feldspar with very low impurities and high aluminum oxide (30%) content. The study was based on extensive metallurgical testwork over the last two years where Hudson successfully produced a high quality calcined alumina product suited to specialty non-metallurgical applications (refer to NR2014-05, December 11, 2014). The metallurgical flowsheet utilizes known technologies, does not produce any waste, and produces two potentially valuable co-products, amorphous silica (AS) and calcium silicate (CS). The study is based on shipping crushed anorthosite from Greenland for final processing in Eastern Canada or the US Gulf Coast, where there is a ready supply of natural gas and customers for the co-products.

Alumina production is one of three potential revenue streams Hudson is pursuing for the White Mountain project. Hudson is currently in the final permitting stage with the government of Greenland to build the anorthosite mine to supply the E-glass (fiberglass) industry. As well, the Company is also in advanced negotiations for off-take agreements with E-glass producers. It is important to note that the current indicated mineral resource, as defined in Table 5, is sufficient to support both the E-Glass and alumina projects.

To determine the economic viability of the project, this alumina study was developed as if it was a standalone project without any of the benefits associated with an existing mining operation.