I tried adding this to an existing save and there weren't any sludge veins, even when I explored out of my bubble. I then regenerated the terrain using this mod but I still couldn't find any. It could just be bad luck but I walked several miles and didn't see anything.
I wonder if the resource richness and frequency defaulted to zero when added to a game? Or maybe you need to listen to some script event when being added to a save or regenerating chunks.