To: seventh_son who wrote (3901 ) 3/18/2008 8:20:16 AM From: Letmebe Frank Read Replies (1) | Respond to of 16206 Hello Seventh, sorry it took 2 years to reply. Looking at where the diamond stocks were two years ago and where the are now, its easy to see why few people make money "investing" in these plays. Heres the latest HUD wire. THanks Will. Hudson plans larger tests, drilling on Greenland play 2008-03-17 16:38 ET - Street Wire by Will Purcell Jamie Tuer's Hudson Resources Inc. hopes to soften the ride for the larger diamonds when it processes bigger batches of kimberlite from the Garnet Lake kimberlite dike in Greenland. Modest grades are disappointing investors, but Hudson thinks the diamond content is at least one-half carat per tonne. Further, there are encouraging signs for the value of the Garnet Lake gems. The company's last test clipped Hudson's share price in two, but the potential for large and valuable diamonds is holding the stock in a more stable, but less euphoric, 60-cent range. The plan Hudson planned to complete a 600-tonne test of the dike last year. It managed to excavate about 500 tonnes of the rock, but processed less than 200 tonnes before winter arrived. As a result, it now has at least 300 tonnes of kimberlite in a stockpile beside its processing plant. The company will collect a new sample from at least one other site to the north of where it took the first batch. Mr. Tuer said the company needed larger batches of kimberlite because of the coarse diamond size profile of the Garnet Lake rock. As a result, Hudson will keep its plant busy through the summer season. Hudson plans 5,000 metres of drilling to confirm its dike intersections and to test new targets. As well, the company will have its geologists out prospecting across its large project area. Drills carry far more weight with investors than a gaggle of geologists, but Hudson's first diamond hauls came from float found by prospectors. The company is hoping for an early start this year. Snowfalls are not heavy in the Sarfartoq region of western Greenland and although there were more storms than usual this winter, much of the open land blows clear. As a result, the company expects it can start drilling and prospecting in May. The big drifts around the company's processing plant and camp could linger into early summer, and Hudson should be able to drill targets from the lake ice through much of June. The encouragement Mr. Tuer said Hudson was working on processing efficiencies that should lessen the risk of damage to the larger diamonds. That would do little for the grade potential of Garnet Lake, but large diamonds typically carry most of the value in a diamond deposit. The company's 2.51-carat gem was a noteworthy find, with a likely value of about $600 (U.S.) per carat. That one diamond alone is worth $82 (U.S.) per carat when spread across the 18.36-carat parcel. As a result, the Garnet Lake diamonds could easily be worth well over $100 (U.S.) per carat. In fact, evidence of a broken larger diamond provides further encouragement. Hudson thinks it accidentally broke a gem weighing four carats while processing the kimberlite. The fragments suggest the stone was a high-quality gem, potentially worth up to $5,000 (U.S.) per carat. A diamond worth $20,000 (U.S.) in a small test seems a fluke. Still, its high-quality fragments and the other large intact gem suggest the Garnet Lake diamonds could make up in value what they lack in grade. The parcel is far too small to provide a meaningful valuation, but Hudson is having its diamonds examined by diamentaires. A diamond value of $200 (U.S.) per carat would make a grade of one-half carat per tonne appear attractive. Hudson's first test managed barely half that grade and its latest test cut that modest result by one-half again. Nevertheless, there is evidence that Hudson is having a tough time liberating most of its smaller diamonds. Had the plant delivered the numbers of diamonds smaller than a 1.7-millimetre sieve that caustic dissolution managed, the Garnet Lake grade would reach one-half carat per tonne. Hudson closed down a penny to 61 cents Friday on 39,500 shares.