Cardero Secures 49.5% Interest in Coalhunter Mining Corporation Through Participation in Equity Financing
Investment Details
Under the terms of the subscription agreement between Coalhunter and Cardero, Cardero has acquired 12 million common shares of Coalhunter at a price of CAD 0.30 per share for a total investment of CAD 3,600,000. Through participation in this financing, Cardero has acquired a 49.57% interest in Coalhunter. Cardero has an ongoing right to maintain its percentage interest in Coalhunter so long as it holds at least a 10% interest and, in certain circumstances, the right to increase its position to 51%. Upon the completion of the private placement, Keith Henderson, Cardero's Vice-President, Exploration was appointed as a director of Coalhunter. Should Cardero increase its interest to 51%, it would be entitled to nominate an additional director.
Upon closing the private placement Coalhunter President Michael Hunter commented that, "...We are very pleased to have secured the interest and involvement of Cardero Resource Corp. It's a key step in our program to unlock the value of the Carbon Creek asset."
Cardero Strategy
Acquisition of this interest in Coalhunter is in line with Cardero's focus on bulk commodities and allows the Company to leverage significant value out of its considerable cash funds available for acquisitions and investments.
"Since completing the 100% cash sale of Pampa de Pongo in January 2010, the Company has been seeking quality investment opportunities" stated Henk van Alphen, Cardero's President & CEO. "Technical staff and consultants have completed due diligence on more than 15 projects or companies and have placed bids or made offers on several of them. The significant challenge of finding the right project at the right price in the current market environment has become apparent to everyone involved."
"This investment in Coalhunter is the second of several such investments that Cardero has completed or is currently negotiating" continued van Alphen. "Investments such as that in Coalhunter, where Cardero can be positioned at the earliest stage, represent tremendous potential value for Cardero shareholders."
ABOUT COALHUNTER MINING CORPORATION.
Coalhunter is a private British Columbia company which has successfully negotiated a joint venture to explore and, if warranted, develop certain coal deposits in the Carbon Creek coal field located in British Columbia's northeast coalfield. The joint venture property consists of a lease of freehold coal and certain coal licenses issued by the British Colombia government. Coalhunter will hold a 75% interest in the joint venture and its co-venturer will hold a 25% carried interest. Coalhunter will be required to fund all exploration, development and mining costs, and the co-venturer will receive 25% of the net proceeds (after recovery by Coalhunter of its capital expenditures and ongoing operating costs). Coalhunter has commissioned NORWEST Corp to complete a NI 43-101 report on the properties, which will include all necessary details of Coalhunter's interest in the Carbon Creek deposit as well as an independent assessment of the extensive historical data relating to the deposit. Between 1970 and 1981, Utah Mines Ltd. completed 296 rotary and diamond drill holes totalling nearly 26,000 metres and excavated more than 7,000 tonnes of coal for quality analysis.
ABOUT CARDERO RESOURCE CORP.
Cardero's focus through 2010 is to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico, and aggressively seek out and potentially acquire new advanced stage projects. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Hendrik van Alphen" (signed)
Hendrik van Alphen, President
Contact Information:
Steve Stakiw, Manager - Corporate Communications & Investor Relations
Email: sstakiw@cardero.com
Phone: 1-888-770-7488 (604) 408-7488 / Fax: (604) 408-7499
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for the Company to acquire advanced stage projects, the potential for the Company to acquire additional positions in early stage ventures, any potential value or benefit to the Company through its investment in Coalhunter Mining Corporation or other similar investments, business and financing plans and business trends, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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Cardero Announces Normal Course Issuer Bid
The average daily trading volume on the TSX for the six months preceding June 1, 2010 was 79,740 Shares. Subject to the Company's ability to make "block" purchases under TSX rules and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended ("Rule 10b-18"), the daily repurchase restriction during the course of the NCIB is 25% of the average daily trading volume for either the four calendar weeks preceding the week in which the purchase is effected or 19,935 Shares, whichever is the lower. The Company may buy back Shares anytime during the 12-month period beginning on June 21, 2010 and ending on June 20, 2011 or on such earlier date as the Company may complete its purchases pursuant to the NCIB, or provide notice of termination. Any purchases under the NCIB will be made through the facilities of the TSX or the NYSE-Amex, in compliance with the rules of the TSX and Rule 10b-18. The Company will pay the market price at the time of acquisition of Shares purchased through the facilities of the TSX or the NYSE-Amex, subject to any restrictions under the rules of the TSX and Rule 10b-18. Approval of the NCIB is not required from the NYSE-Amex; however, notification has been provided to NYSE-Amex. The actual number of Shares which may be purchased, and the timing of any such purchases, will be determined by the Company, in accordance with the rules of the TSX and Rule 10b-18.
The Company believes that purchases under the NCIB constitute a desirable use of its funds on the basis that recent market prices of the Shares do not, and at certain times during the course of the NCIB may not, fully reflect the value of its business and future business prospects. In addition, the Issuer believes that the NCIB will provide an opportunity for those of its shareholders who wish to receive cash in respect of the recently completed sale of the Pampa de Pongo iron project in Peru to do so in a way that is more tax advantageous that a dividend would be. While the Issuer does not believe that there are many such holders, it wishes to provide an opportunity for them to do so (at least partially). The Company has not previously engaged in a normal course issuer bid. Shares that are purchased pursuant to the NCIB will be cancelled by the Company, thereby enhancing the remaining shareholders' value by increasing their proportionate interests.
Shareholders of the Company will be provided with a summary of the material information contained in the Notice of Intention to Make a Normal Course Issuer Bid filed with the TSX in connection with the NCIB in the next quarterly report of the Company to be mailed to shareholders and filed on SEDAR and with the Securities and Exchange Commission. Shareholders may obtain a copy of the Notice of Intention to Make a Normal Course Issuer Bid from the Company without charge.
ABOUT CARDERO RESOURCE CORP.
Cardero's focus through 2010 is to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico, and aggressively seek out and potentially acquire new advanced stage projects. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Hendrik van Alphen" (signed)
Hendrik van Alphen, President
Contact Information:
Steve Stakiw, Manager - Corporate Communications & Investor Relations
Email: sstakiw@cardero.com
Phone: 1-888-770-7488 (604) 408-7488 / Fax: (604) 408-7499
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the Company's views regarding the market price of its common shares, its plans to undertake a normal course issuer bid, and the objectives of the normal course issuer bid, the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for the Company to acquire advanced stage projects, the potential for the Company to acquire additional positions in early stage ventures, business and financing plans and business trends, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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Cardero Iron Ore President & CEO Glenn Hoffman Receives Prestigious Society of Metallurgical Engineers Antoine M. Gaudin Award
Cardero Resource Corp. ("Cardero" or the "Company") -- (TSX: CDU, NYSE-A: CDY, Frankfurt: CR5) is pleased to announce that Glenn Hoffman, the President & CEO of Cardero Iron Ore Company Ltd., received the Antoine M. Gaudin award at the recent 2010 Annual Conference for the Society of Mining, Metallurgy and Exploration (SME) held in Phoenix, Arizona. The Antoine M. Gaudin Award, established in 1975, is for scientific or engineering contributions that further understanding of the technology of mineral processing.
Cardero is utilizing Mr. Hoffman's innovative processing technologies currently under development for the Pampa El Toro Iron Sands in Peru and the TiTac and Longnose Ferrotitanium projects in Minnesota as an entry point into existing metallurgical projects where advanced metallurgical processing technology is required. Cardero believes that significant value could potentially be added to mineral concentrates with these metallurgical solutions (for which patents have been applied). The Company sees tremendous opportunity across the entire iron industry from continuing development of broad applications of these technologies.
In addition, Mr. Hoffman is improving upon pyro-metallurigical zinc oxide processing techniques which, if successful, could revolutionize the zinc oxide industry, where the capital expenditures associated with current technologies are typically cost prohibitive. The Company could either use this expertise to leverage into what are presently sub-economic zinc and lead oxide resources or licence out the technology on a case by case basis.
Henk Van Alphen stated, "We are extremely pleased that the industry has recognized Glenn with this award. Glenn's expertise and initiative to lead development of this advanced metallurgical technology provides Cardero with a much broader business focus and has significant cash flow potential as we continue to establish industry standards."
As part of the award ceremony, Mr. Hoffman was invited to present a lecture to fellow Conference attendees -- his topic being "Truth & Consequences -- A Prescription for Innovation" as relating to the minerals processing industry. In his lecture, he outlined techniques used in applying innovation to selected engineering challenges or projects which helped shape his career, including the latest Cardero projects. These 'tricks of the trade' were then distilled and offered to the audience as an approach to apply innovation to their own circumstances.
Glenn Hoffman (right) accepts the Antoine M. Gaudin Award
from the Society of Mining, Metallurgy and Exploration
Mr. Hoffman received his BSc. in Metallurgical and Materials Engineering from the Illinois Institute of Technology (IIT) in 1975 and a MSc. in Metallurgical Engineering from the Michigan Technological University (MTU) in 1977. Prior to joining Cardero in 2007, he was employed by MIDREX Technologies Inc. for 30 years, where he was involved in developing cutting edge technologies for the direct reduced iron and iron making industry. While at MIDREX, he worked at developing the FASTMET(tr), FASTMELT(tr), ITmk3(tr) and QUIKSTEEL technologies. He also is credited with inventing/co-inventing methods relating to ferrous and non-ferrous process metallurgy, which have been the subject of 13 patents to date.
About Cardero Resource Corp.
Cardero's focus through 2010 is to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, the Baja district of Mexico and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico and aggressively seek out and potentially acquire new advanced stage projects. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Hendrik van Alphen" (signed)
Hendrik van Alphen, President
Contact Information:Steve Stakiw, Corporate Communications & Investor Relations
Email: info@cardero.com
Phone: 1-888-770-7488 (604) 408-7488 / Fax: (604) 408-7499
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the potential discovery of mineral deposits at the Company's Organullo project, the potential for the discovery of bulk-tonnage targets, the potential discovery of economic mineralization, the timing, cost and nature of future anticipated exploration programs and the results thereof and business plans are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies and other risks and uncertainties disclosed in the Company's annual information form filed with the B.C., Alberta and Ontario Securities Commissions and the annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
Cardero Commences Drilling at Organullo Gold Project, Northwest Argentina
Historical Data Defines Significant Bulk-tonnage Style Gold Mineralization
Highlights include: 189 metres of 0.66 g/t gold and 186 metres of 0.50 g/t gold
Highlights include: 189 metres of 0.66 g/t gold and 186 metres of 0.50 g/t gold
Cardero Resource Corp. ("Cardero" or the "Company") -- (TSX: CDU, NYSE-A: CDY, Frankfurt: CR5) is pleased to announce that drilling has commenced at its 100% owned Organullo project in Salta Province, northwest Argentina. Historical drill results from Organullo identified significant bulk-tonnage style gold mineralization, including up to 189 metres grading 0.66 g/t gold. Results from recently completed mapping, geochemical and geophysical exploration indicates potential for a large, bulk-tonnage gold system that warrants follow up drilling.
The Company has commenced an initial 2,000 metre, 5-hole diamond drill program to test an approximately 2.1-kilometre long by 800-metre wide north-south trending structural zone defined by the coincidence of significant historical drill intercepts (Table 1), gold-in-rock surface geochemistry, and variably developed advanced argillic (alunite+/-dickite+/-pyrophyllite) and silica alteration in the vicinity of the former Julio Verne mine (Figure 1).
Highlights of the Company's recent drill-targeting exploration program include:
- Gold values from 361 rock samples collected over 8 kilometres of strike on the 6100 ha property average 0.48 g/t and range from below detection to 29.7 g/t.
- Mapping and geochemical analyses have defined a 2.1-kilometre by 800-metre zone of high-temperature hydrothermal alteration typical of both low- and high-sulphidation epithermal gold deposits.
- Geophysical surveying has characterized the historical Julio Verne Mine and identified similar targets over a 5-kilometre strike length.
- Geology and geochemical results consistent with the upper levels of a large magmatic porphyry-high sulphidation system have been highlighted. These type of systems host prolific gold mineralization elsewhere in the central Andes, such as in the Pascua - El Indio belt, and do not preclude the potential for a large Bajo de la Alumbrera or El Salvador-style porphyry deposit at depth.
The Company believes that historic exploration inadequately tested this large, pervasive gold-bearing system. The majority of the historic drilling (6121 metres in 35 holes) was collared parallel to mineralized structures and hence either failed to test the principal structures and/or provided intersections which the Company believes may not be representative. In addition, recoveries were very poor (25-30%) due to loss of potentially mineralized clay rich zones and high groundwater saturation. Despite sub-optimal drill hole orientation and drill conditions, historical drill holes did define potentially economic bulk-tonnage style gold mineralization. Highlights are summarized below:
Table 1: Select Historical Drill Highlights
(*RC -- reverse circulation; **DDH -- diamond drill hole)
Assay data taken from results reported by Triton Mining Corp. and Northern Orion Explorations, Ltd. and are believed to be representative, although the Company has not yet confirmed these with its own drill data. Until such confirmation has been obtained,
readers should not place undue reliance on the information contained herein.
(*RC -- reverse circulation; **DDH -- diamond drill hole)
Hole ID |
Year |
Type |
Length (m) |
Average Gold Grade (g/t) |
AR3 |
1995 |
RC* |
200.00 |
0.34 |
AR4 |
1995 |
RC |
200.00 |
0.47 |
AR5 |
1995 |
RC |
189.00 |
0.66 |
AR7 |
1995 |
RC |
200.00 |
0.36 |
DD19 |
1997 |
DDH** |
144.80 |
0.48 |
DD21 |
1997 |
DDH |
118.05 |
0.34 |
AR32 |
1999 |
RC |
186.00 |
0.50 |
Project Overview
The Organullo property is situated in the Province of Salta, northwest Argentina, in the central South American Andes mountain ranges. The property is located approximately 18 kilometres by road south of San Antonio de Los Cobres, the capital city of the Los Andes department, which has both power and rail infrastructure. Cardero holds a 100% interest in the property, which covers approximately 6,100 hectares. Elevations range from 3,990 to 4,580 metres above sea level in this arid region of the altiplano known in Argentina as the Puna.
Gold mineralization on the Organullo property is hosted in Tertiary age dacite to andesite pyroclastic rocks and underlying Paleozoic age Puncoviscana metasedimentary rocks in a tectonically fertile part of the Argentinean Puna.
Textures, geochemistry, host rocks and alteration assemblages are consistent with both low- and high-sulphidation styles of epithermal mineralization that host prolific gold mineralization elsewhere in the central Andes, such as in the Pascua - El Indio belt, and do not preclude the potential for a large Bajo de la Alumbrera or El Salvador style porphyry deposit at depth.
Exploration History
The earliest recorded work in the area of the Organullo property comes from reports of small-scale production from the Julio Verne mine during the 1930's. Mining activity centered on 2 high-grade sub-parallel veins with concentrates reported to average 12.5% bismuth and 8.2% copper with gold ranging between 10-20 g/t. Early regional work was undertaken in the area by Fabricaciones Militares in 1962-72 in partnership with the United Nations, followed up by an IP survey and drilling by Cities Service Corporation. In 1994-1995 Triton Mining Corp. and Northern Orion Explorations, Ltd. jointly conducted a detailed surface sampling, mapping and prospecting campaign and completed a 17-hole, 3,295-metre RC drill program. This was followed with a 6 hole diamond drill program in 1997 and an additional 12-hole RC drill program in 1999 by Northern Orion. Cardero purchased the project in 2004, and has conducted several reconnaissance exploration programs and detailed petrographic studies since that time and prior to this current exploration program.
Qualified Person and QA/QC Programs
R. Scott Heffernan, M.Sc., P.Geol., Cardero's Chief Geologist, and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Heffernan is not independent of Cardero by virtue of being an employee and a holder of incentive stock options.
The work programs at Organullo were designed by, and are supervised by, R. Scott Heffernan, Paul Klipfel, Ph.D. of Mineral Resource Services Inc. and Equity Exploration Consultants Ltd. of Vancouver, BC who together are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ALS Chemex Laboratories, Mendoza, for assay. ALS Chemex's quality management system complies with the requirements for the International Standards ISO 9001:2008. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Cardero personnel in order to independently assess analytical accuracy.
About Cardero Resource Corp.
Cardero's focus through 2010 is to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, the Baja district of Mexico and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico and aggressively seek out and potentially acquire new advanced stage projects. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Hendrik van Alphen" (signed)
Hendrik van Alphen, President
Contact Information: Quentin Mai, Manager -- Corporate Communications & Investor Relations
Email: qmai@cardero.com
Phone: 1-888-770-7488 (604) 408-7488 / Fax: (604) 408-7499
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the potential discovery of mineral deposits at the Company's Organullo project, the potential for the discovery of bulk-tonnage targets, the potential discovery of economic mineralization, the timing, cost and nature of future anticipated exploration programs and the results thereof and business plans are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies and other risks and uncertainties disclosed in the Company's annual information form filed with the B.C., Alberta and Ontario Securities Commissions and the annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Cautionary Note Regarding Similar or Adjacent Properties
This press release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The Company advises US investors that the US Securities and Exchange Commission's mining guidelines strictly prohibit information of this type in documents filed with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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Cardero Baja IOCG Project Update
News Release 10-03
Cardero Resource Corp. ("Cardero" or the "Company") - (TSX: CDU, NYSE-A: CDY, Frankfurt: CR5) is pleased to provide an update on the Baja IOCG Project in Baja California Norte, Mexico where drilling on the San Fernando West target area has commenced. Drilling to date has significantly increased the Company's understanding of the large copper-bearing system and has resulted in a re-prioritization of drill targets on the Western flank the large property. The best drill results from previous drilling at San Fernando East and Central were located in the extreme west of the original target area and no drilling has ever been completed on the San Fernando West target. All previous drilling, including holes completed in 2010, vectors to the west and these targets are now being tested for the first time.
This phase of the drill program consists of five drillholes, the first of which has been completed, intersecting more than 100 metres of highly fractured, brecciated and potassic-sodic-calcic altered rocks containing trace copper mineralization. The remaining drillholes will test a series of multi-element IOCG pathfinder geochemical anomalies (copper-zinc-silver) where surface mapping has highlighted abundant brecciation of the volcanic rocks. The area is essentially untested with only one drillhole on the eastern fringe of the geochemical-structural anomaly over approximately 3 kilometres strike length.
Baja Iron Oxide-Copper-Gold (IOCG) Belt
Recent structural re-interpretation and analysis has successfully developed multiple bulk-tonnage copper-gold targets on the Company's Baja Iron Oxide-Copper-Gold project. Previous exploration by Anglo American and Cardero successfully intersected locally productive and large pervasive IOCG systems at the Picale and San Fernando prospects in addition to identifying several other large copper bearing IOCG targets.
Current exploration drilling is testing the test bulk tonnage copper targets at the San Fernando, San Jose and Santa Maria prospects.
Current Drilling - San Fernando West
An initial drill test within the San Fernando West target area (SF10-024) has been completed and sampled but to date no analysis has been received from the laboratory. The drillhole is not expected to contain significant copper mineralization, however, the intense alteration and brecciation in the drillhole is encouraging and has provided a new impetus to test the associated geochemical anomalies.
Drillhole SF10-024 intersected massive fine-grained andesitic volcanic rocks, which elsewhere in San Fernando are relatively unaltered and are generally considered poor potential host units. In the west, the rocks are strongly brecciated (tectonic and hydrothermal) by hydrothermal fluids creating enormous amounts of permeability and space in an area coincident with strong surface soil geochemical anomalies. Copper and IOCG geochemical anomalies exist over approximately 3,000 metres strike.
Westerly Vectors
Detailed examination and re-interpretation of the historical San Fernando drill core has highlighted a number of clear indicators and vectors towards the western area:
- The vast majority of holes in the San Fernando Central area intersected significant alteration and trace to moderate copper mineralization. Drill highlights ranged from 260 to 280 metres at 0.20% to 0.24% copper & 19% iron within which higher-grade intervals occur ranging from 31 to 47 metres at 0.96% to 0.74% copper at San Fernando.
- Alteration progresses from distal sodic and sodic-calcic alteration in the east and central areas to more proximal potassic alteration in the central and western areas.
- Sulphide mineralization is present throughout much of the San Fernando area - as is typical of strong IOCG systems - but pyrite and trace chalcopyrite (copper) in the east give way to pyrite and more abundant chalcopyrite (copper), together with higher temperature pyrrhotite sulphides to the west.
San Fernando Central - 2010
During the current drill program, a total of 7 drillholes have been drilled at San Fernando Central for a total of approximately 2200 metres to test recently defined structural targets. Drill results, when available and compiled, are not expected to represent a material improvement on previous San Fernando drilling results. The drillholes continue to intersect minor copper mineralization over significant intervals but no intersections that could be considered potentially economic. What is significant is the increased understanding of the system and the clear vectors pointing to San Fernando West.
San Jose Drilling - 2010
A series of 5 drillholes have been completed on the previously untested San Jose target, for a total of approximately 1,000 metres, located 25 kilometres north of the main San Fernando target area. The drillholes were focussed on testing a large Induced Polarization (IP) anomaly. No analysis has been received from the drillhole sampling to date but visual inspection of the core suggests that the IP anomaly has been adequately explained by barren disseminated pyrite mineralization. Assuming that the laboratory results are as expected, no further testing will be undertaken in the area and the claims will be relinquished.
Other Targets
A post-doctorate IOCG research specialist from Colorado School of Mines is currently working at the Baja Project - the primary objectives are to provide further interpretation of this frontier IOCG district, which it is hoped will lead to further drill testing on the large property package.
Cardero Acquires Additional ITH shares
The Company also announces that it has acquired an additional 1,035,723 common shares of International Tower Hill Mines Ltd., at a cost of CAD 6.00 per share, in the recent non-brokered private placement by ITH completed earlier this month. The Company now holds an aggregate of 4,582,523 common shares of ITH, representing approximately 6.99% of the outstanding common shares.
Qualified Person
EurGeol Dr. Mark D. Cruise, Cardero's Vice President-Business Development and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the Company as he is an employee and shareholder.
The work programs at Baja were designed by, and are supervised by, Keith Henderson, VP Exploration of Cardero, and Dr. Mark Cruise who together are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ALS Chemex Laboratories, Vancouver, for assay. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Cardero personnel in order to independently assess analytical accuracy.
About Cardero Resource Corp.
Cardero's focus through 2010 is to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, the Baja district of Mexico and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico and aggressively seek out and potentially acquire new advanced stage projects. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the New York Stock Exchange Amex (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Hendrik van Alphen" (signed)
Hendrik van Alphen, President
Contact Information:
Quentin Mai, Manager - Corporate Communications & Investor Relations
Email: qmai@cardero.com
Phone: 1-888-770-7488 (604) 408-7488 / Fax: (604) 408-7499
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the potential discovery of mineral deposits at the Company's Baja IOCG project, the potential for the discovery of bulk-tonnage targets, the potential discovery of economic mineralization, and the timing, cost and nature of future anticipated exploration programs and the results thereof are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies and other risks and uncertainties disclosed in the Company's annual information form filed with the B.C., Alberta and Ontario Securities Commissions and the annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.