 | | | |
 
LOS MANANTIALES
Project Location
The Los Manantiales Project (formerly "Mina Angela") is located in the province of Chubut at an altitude of 1,400m above sea level. The property consists of 44 individual claims, totaling 2,706 hectares.
Mineralization
Mineralization at Los Manantiales consists of a low sulphidation epithermal vein systems hosted by a Jurassic volcanic sequence. The major veins are confined to a north-easterly trending alteration corridor bounded by felsic dyke swarms and were deposited in right lateral strike slip faults.
Production History
Production took place at Los Manantiales on selected veins between 1978 and 1992. From 1983, when accurate mining records begin, until closure in 1992, Mina Angela produced 1,037,360 tons at an average grade of 4.0g/t Au, 48.4g/t Ag, 2.0% Pb, 0.4% Cu and 4.6% Zn.
In 1997 and 1998 Lonrho Mining South Africa carried out exploration including geological mapping, regional soil sampling and ground geophysics. The program also included 3,443 metres of diamond drilling in 16 holes drilled within a 4 by 5 kilometer area. The best values were obtained on the Sahuel vein system, where one hole intersected 1.36 metres grading 40.65 g/t Au, 1773 g/t Ag, 1.79% Pb, 0.23% Cu and 10.06% Zn at a vertical depth of 65 metres below surface.
Another hole drilled on the same system intersected a second vein approximately 65 metres to the west with 2.02 metres averaging 6.69 g/t Au, 240g/t Ag, 0.52% Pb, 0.04% Cu and 2.19% Zn. Geophysics indicates the Sahuel vein system has a potential strike length of 1.6 kilometres. The other holes indicate gold values ranging from trace to 2.25 g/t over varying widths. At the end of 1998 Lonrho decided to concentrate on mining activities in Africa and withdrew from other regions, including South America. Following completion of its exploration activities, Lonrho carried out the necessary reclamation to comply with the mining environmental code.
Ownership
In late December 2004 , Cardero's wholly owned subsidiary Cardero Argentina S.A., entered into an agreement with Stenfield Minera S.A., an arm's length private Argentinean company, ("Stenfield") pursuant to which the Company has the right to explore, and an option to purchase, the Los Manantiales property.
In March 2007, Cardero Argentina S.A. optioned the property to Hochschild Mining Holdings Limited. Under-terms of the option agreement with the Company, HMHL may earn an initial 60% interest in Los Manantiales by incurring an aggregate of USD 3,500,000 in expenditures over a 4 year period (which includes the payments to the underlying vendor). Upon HMHL having earned its interest, Cardero may elect to either participate at the 40% interest level, or request HMHL to fund the preparation of a bankable feasibility study and thereby earn an additional 10% interest in the joint venture. Following the formation of the joint venture and the completion of its earn-in requirements by HMHL, each participant is responsible for funding its share of joint venture expenditures, and failure to do so will result in dilution under standard industry terms.
In July 2007, Hochschild Mining Holdings Limited (a subsidiary of Hochschild Mining plc) exercised its option from the underlying vendor (Stenfield Minera S.A.) and completed the purchase of Los Manantiales property (formerly "Mina Angela") on behalf of the partnership twelve months ahead of schedule.
On December 3, 2008, the optionee terminated the option and returned all interest in the property to Cardero.
| | | |
| | | | |
