Hudson finds Greenland diamonds (October 04, 2004)

Vancouver — Hudson Resources (HUD-V) has recovered several macrodiamonds at the Garnet Lake property in western Greenland, part of the Sarfartoq Exploration licence.

Surface testing of a section of probable frost-heaved kimberlite yielded a 108-kg sample of varying phases of the ultramafic eruptive. More than 150 diamonds, in all size categories, were recovered, and of these, nine are macros (equal to, or greater than, 0.5 mm in at least one dimension).

The sample comprised various kimberlite phases, including a nodular-rich section and a matrix-dominated portion. Several large garnets were visible in the matrix material.

The origin of the kimberlite appears to be local, and Hudson plans to carry out drilling in early 2005 so as to confirm an in situ occurrence. Also, the company has applied to acquire 89 sq. km of open ground north of the project area.

Hudson has been conducting geochemical sampling in the Sarfartoq licence area, recovering abundant positive indicator minerals.

The company is earning an 80% interest in the Garnet Lake property through an agreement with Aussie explorer New Millennium Resources. Minimum payments totalling $1 million over four years are required; the current year’s obligations have been met. New Millennium retains full interest in any occurrence of niobium and tantalum.

Investors leapt on the news, driving Hudson stock up as high as $1.10 per share before it closed at 79 on a volume in excess of 140,000 shares. Hudson has 9.1 million shares outstanding.