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| | | |   Chingolo Property Project The Chingolo Property is Silver, Lead, Zinc prospect comprised of four mineral concessions totaling 22,843 hectares. Location The property is located in the northwest corner of Argentina in the province of Jujuy, about 240km NW of the city of Salta. Ownership Cardero Resource Corp has the right to acquire 100% ownership (please see below for additional details). Announced January 22, 2004 History Silver was probably discovered on the Chingolo property sometime in the late 1970's by prospectors looking for similar mineralization as that found at the Providencia mine located 12 km to the east. Minor trenching was subsequently carried out in the area of the main showings but there is no record of when this work was completed. In 1997 Corriente Resources Inc examined the property and sampled the earlier trenches. This work confirmed the presence of significant silver mineralization, but Corriente did not option the property and no further work was carried out. Cardero optioned the core property in late 2002 and subsequently staked additional ground. In the first half of 2003, Cardero completed an additional program consisting of detailed mapping, trenching, a backhoe test put program, soil sampling and drilling two core holes totaling 481.1 m and in the second half of 2003m completed an additional six core holes totaling 1,195 m. Geological Setting Chingolo lies a on a regional cross-cutting 295-degree oriented fault-fracture system that appears to have controlled the emplacement of a Miocene dacite volcanic event. This volcanic event is evident as several calderas with associated dacite extrusive domes, and ring-fracture structures. Chingolo is associated with one of a number of small prominent circular topographic features that are inferred to be potential epithermal centres. Mineralization Drilling to date has tested the central part of the zone over a strike length of about 400 meters. Anomalous to low grade silver values occur over long core intervals in the central part of the area with narrow intervals of higher grade mineralization that are difficult to correlate from hole to hole. The best continuous intercepts are 77.7 m of 25.9 g/t Ag in Hole 1, 57.8 m of 36.4 g/t Ag in Hole 2, 58.2 m of 56.8 g/t Ag in Hole 7, and 10.8 m of 138.3 g/t Ag in Hole 8. Mineralization remains open along the projected strike length of the zone to the North and South. Colluvium and younger volcanic cover conceal most of this prospective ground. Chingolo Results - Announced January 28, 2004 Six inclined diamond drill holes were completed for a total of 1,194 metres. Of the six holes drilled three encountered significant silver values while the remaining three holes appear to have been drilled on the periphery of the interpreted zone of mineralization. Significant intersections are tabulated below:
The interpreted zone of mineralization is approximately 125 metres wide and has been traced along strike for approximately 250 metres. It is open along strike to the northeast, southwest and down dip to the southeast. Lead and zinc are commonly associated with the silver mineralization at Chingolo, hosted in a combination of open fractures, gashes, voids, tuffs and terrigenous sediments. Examination of the mineralized surfaces in core suggest that the open space fracture fill has been subjected to scouring with a resultant loss of mineralized sample. Consequently it is believed that the values obtained from core assays may not be fully representative of the original metal content of the rock. The next drill program at Chingolo is scheduled for this Spring, and will utilize a reverse circulation rig in order to obtain a larger and more representative sample. The two main objectives of the next program will be to test the potential for the Chingolo target along strike to the northeast and to drill a set of holes to test the potential at depth where recent mineralogical studies suggest that the mineralization encountered to date is peripheral to a larger epithermal system. Ownership Details: The terms of the fourth agreement relating to the regional extensions of La Providencia, and the Chingolo property requires that Cardero, in order to acquire a 100% interest, make an initial payment of US$10,000 on signing and issue to the vendor a total of 250,000 common shares of Cardero incrementally over the 48 months after closing. There are no royalties associated with this agreement. | | | |  | | | | |
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