Vancouver, British Columbia - Cardero Resource Corp. (“Cardero” or the “Company”) (TSXV: CDU, Frankfurt: CR5) is pleased to announce receipt of positive surface exploration results for the Company’s Zonia Copper Oxide Project, located in Yavapai County, Arizona USA. Rock geochemical sampling on a 150-metre spaced grid over most of the claim block has generated a new porphyry copper target based on coincident anomalous copper, molybdenum and manganese. The 2500 by 1000 metre anomaly occurs northeast of the drill-defined Zonia copper oxide deposit, and shares characteristics of its geochemical footprint.
“We are extremely pleased to have generated such a large target adjacent to the drill-defined copper oxide resource, and in an area that would not interfere with the conceptual mine design. Once the current geophysical survey is complete, we hope to have a compelling drill target, one that could add significant upside to the mineral resources at Zonia”, says Stuart Ross, CEO of the Company.
Cardero is currently completing a 28 line-kilometre IP survey over the Zonia and neighbouring Silver Queen properties (see NR16-06), utilizing 200 metre spaced dipoles.
Northeast Porphyry Target
Coincident areas of elevated molybdenum (Mo) and copper (Cu) values with depressed manganese (Mn) values is a classic geochemical signature of porphyry copper mineralization (Figures 1 and 2). Copper values are also anomalous (Figure 3), but copper is not as reliable as the other metals due to its solubility in the weathering profile. The overlapping anomalies suggest a porphyry copper target size on the order of 2500 by 1000 metres. The same quartz-feldspar porphyry dacite that hosts the Zonia copper oxide resource (see NR17-08) underlies the anomaly. The anomaly marks a break in the northeast trend of the mineralization, with a narrow southern “tail” that opens northward to a broader northeast trend. The anomaly is truncated at the north end by younger, post-mineral cover rocks (Gila conglomerate, alluvium, and Tertiary basalt). The east margin of the anomaly contains some narrow high-grade copper bearing structures in the historical Copper Crown mine workings, with associated intense epidote alteration.
The entire area covered by the rock geochemical grid will be covered by the on-going IP survey. Once completed within the next few weeks, this additional data should further delineate subsurface mineralization as well as depth to sulphides (depth of oxidation) under the large Cu-Mo-Mn geochemical anomaly northeast of the Zonia deposit.
Additional 150-metre spaced rock sampling is planned for the open pit area and southwest of the pit, where more detail is required to close off the anomalies.
Zonia Copper Oxide Deposit
The Zonia Copper Oxide Project has been held under private ownership for almost 100 years and has undergone comprehensive exploration, metallurgical studies and mine development planning. The majority of the mineralized area was pre-stripped during previous open-pit mining operations at Zonia in 1966, as 17 million tons were mined with 7 million tons stacked on heap leach pads, producing cement copper up till 1975. The property has been drill tested with almost 700 drill holes (60,000 meters). This high-density drilling covers 30% of the property and defines the current resource estimate, reducing technical risk on the deposit.
The Zonia copper deposit has a north-easterly strike length of about 2,400 m (8,000 ft) and horizontal width varies from 60 m (200 ft) to 460m (1,500 ft). The deposit consists of multiple mineralized zones that dip at various angles to the northwest. The zones are generally in the order of 200 ft (60 m) wide and commonly occur in sub-parallel groups of three or more. Most of the deposit has been drilled to depths of 120 m (400 ft) or less. Deposit highlights include:
- Measured and Indicated Resources of 76.8 million short tons grading 0.33% copper containing 510 million pounds of copper (0.2% copper cut-off grade).
- Inferred Resources of 27.2 million short tons grading 0.28% copper containing 154.6 million pounds of copper (0.2% copper cut-off grade).
- Low strip ratio of 1:1 waste to mineralized material in base case.
Figure 1: Gridded and thematic molybdenum (Mo) rock values, with the Whittle pit outline that defines the current resource estimate at Zonia. All claims shown are owned or under option by Cardero.
Figure 2: Gridded and thematic manganese (Mn) rock values, note the Mn low coincides well with the Mo high. High Mn values typically form haloes around porphyry deposits.
Figure 3: Gridded and thematic copper (Cu) rock values. The Cu values are higher over the Zonia deposit within the historical open pit, where the partially leached upper horizon has been removed.
Sampling Procedures and Quality Assurance and Quality Control
The work program at Zonia was designed by John Drobe P.Geo., the Company’s Chief Geologist, with the field work conducted by Discovery Consultants, of Vernon, B.C. Due to a lack of consistent soil cover over the project, composite rock samples were collected by shovel from 10 to 25 cm depth over a roughly one-metre square area at each station, and the locations marked with flagging and aluminum tags hung from the nearest vegetation.
Samples were placed in woven Sentry brand 7 by 12.5 inch Olefin sample bags, which were sealed, transported and dropped off directly at ALS Minerals laboratories in Tucson, Arizona by Discovery personnel. The samples were dried at high temperature (method DRY-21), crushed, pulverized (methods CRU-31, SPL-21, PUL-31), and then analysed by ICP‐AES for 35 elements (method ME-ICP41) with gold determined by 30g fire assay and atomic absorption finish (method Au-AA23).
This sampling program did not include a comprehensive QA/QC programme; however, ALS Minerals is an ISO 9002 registered laboratory and inserted blanks, standards and duplicates following their QA/QC protocol. These additional samples returned satisfactory values.
John Drobe P.Geo., Cardero's Chief Geologist and a qualified person as defined by National Instrument 43-101, has reviewed the scientific information that forms the basis for this news release, and has approved the disclosure herein. Mr. Drobe is not independent of the Company as he is an officer, a shareholder and hold incentive stock options.
ABOUT CARDERO RESOURCE CORP.
Cardero Resource Corp., headquartered in Vancouver, is a resource company focussed on building a minerals exploration and development company. Cardero has the exclusive option to acquire up to a 100% interest in the Zonia Copper Oxide Project, located in Arizona. Zonia is a near-surface copper-oxide resource and a brownfields site having already been mined in the late 1960s and ‘70s.
The entire resource (NI 43-101 as amended and dated October, 2017), as currently defined, is located on private land and Cardero’s plan going forward is to complete detailed engineering in anticipation of permitting the Project. The Company has engaged Global Resource Engineering of Denver Colorado to prepare a Preliminary Economic Assessment (PEA), it is expected to be completed in the first quarter of 2018.
In September 2016, Cardero completed staking a total of 57 claims, the Silver Queen block, covering 424.5 hectares (1,049 acres) adjacent to the southeast edge of Zonia.
The Company also has two option agreements covering five nickel-cobalt properties in south eastern British Columbia the, Kootenay Project totalling approximately 8,000 hectares. The Project is within the prospective Lardeau Group, which hosts numerous volcanogenic massive sulphide deposits, including the past-producing Goldstream mine located north of Revelstoke.
Detailed information is available at the Company’s web site at www.cardero.com .
The common shares of the Company are currently listed on the TSX Venture Exchange (symbol CDU), the Frankfurt Stock Exchange (symbol CR5) and OTCBB (symbol CDYCF). 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
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Stuart Ross" (signed)
Stuart Ross, CEO and President
|Contact Information:||Stuart Ross or Marla Ritchie|
604 408 7488
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Toll Free: 1-888-770-7488
Tel: 604 408-7488
Fax: 604 408-7499
Cautionary Note Regarding Forward-Looking Statements
Forward Looking Information: This news release includes certain information that may be deemed "forward looking information". Forward-looking information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. All information in this release, other than information of historical facts, including, without limitation, the potential of the Kootenay project, general future plans and objectives for the Kootenay project, the availability of financing to the Company and the Company's plans in relation to exploration programs and exercising its options regarding the Kootenay project are forward-looking information that involve various risks and uncertainties. Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Forward-looking information is based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from the forward-looking information include changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, regulatory changes, delays in receiving approvals, and other risks detailed herein and from time to time in the filings made by the Company with securities regulatory authorities in Canada. Mineral exploration and development of mines is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking information. For more information on the Company and the risks and challenges of our business, investors should review our continuous disclosure filings which are available at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.
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.