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VANCOUVER - Hudson Resources (TSX 'HUD'; OTC 'HUDRF') announced that based on new mining legislation passed on November 8th by the Greenland Government, it will focus efforts on advancing its 100% owned Sarfartoq rare earth element (REE) project.
The new legislation, which was passed by a narrow majority, bans the development of mineral projects with a uranium content greater than 100 parts per million. The ban does not apply to prospecting, exploration and exploitation directed at non-uranium resources if the average uranium content is less than 100 ppm. This is good news for the Company's advanced ST1 Sarfartoq REE project which contains low levels of uranium (10ppm) and high levels of REE's neodymium oxide (Nd2O3) and praseodymium oxide (Pr6O11), which are the key elements needed for permanent magnets used in wind turbines and the motors in electric and hybrid vehicles.
Jim Cambon, President commented "We are very excited about the future of the Sarfartoq REE project and the ability to be part of the critical metal supply chain into Europe and the Americas. We believe there is an excellent opportunity to build on and improve our 2011 PEA to outline a very robust project given the current strong REE pricing based on fundamental supply and demand. We will provide updates on an ongoing basis."
The global neodymium market is forecast to grow at CAGR (compound annual growth rate) of 5.4% to US $3.39 billion by 2028 led by automotive (Electric Vehicle), wind energy, and electronics (Research and Markets, November, 2021).
Hudson's Nukittooq niobium-tantalum project, which hosts some of the highest reported niobium assays in the industry, contains uranium values more than 100 ppm and as such the Company is reviewing its options for this project under the new legislation.
The high-grade Nukittooq niobium-tantalum project and the Sarfartoq rare earth element project are both located on the Company's 100% owned Sarfartoq exploration license located in southwestern Greenland. Hudson also has a 31.1% equity interest in the White Mountain anorthosite mine and rights to acquire 100%. The White Mountain mine is unaffected by the new uranium legislation.