HRS through its wholly owned subsidiary Hudson Diatomaceous Earth Pty Ltd is the tenement holder of 3 mining leases that form the Badgingarra and Drak Diatomite Project. HRS intends to produce diatomaceous earth as a commercial mineral for use in insecticides, absorbents and filters. The 3 mining leases form two separate Project locations:
Badgingarra mining area ('Badgingarra') on M70/129 and M70/842; and
Drak mining area ('Drak') on M70/38
The Diatomaceous Earth tenements cover two small lakes that contain deposits of diatoms that can be processed into a diatomaceous earth product. The lakes within the tenements area are part of numerous small diatomite deposits dotted along the hinterland of Western Australia's coastline extending north of Perth.
Mining at Badgingarra occurred in the 1990's within a single 12-month period. Currently, there is 20,000 tonnes ('t') of ROM ore stockpiled at Badgingarra, awaiting the development of new product and/or market opportunities. Hudson is currently investigating the option to supply diatomaceous earth into a number of small domestic markets.