Commercial Scale Melting Test Initiated
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/13/08 -- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE-A: CDY)(FRANKFURT: CR5) is pleased to provide an update on the Pampa El Toro (PET) iron sands project, located in the Marcona district, Peru. Cardero is currently focusing on two production scenarios for PET iron concentrate, involving near-term iron concentrate production and medium-term pig iron production. The first scenario involves early production of a direct-shipping iron oxide (magnetite) concentrate that could be used as a sinter feed or pelletized into blast furnace feed. The second scenario involves combining the magnetite concentrate with a reductant and melting in an electric arc furnace (EAF) to produce high quality pig iron along with titanium and vanadium by-products.
PROGRESS SUMMARY
Testing, modification and optimization of the magnetic separation pilot plant at the property has been completed on-schedule and under budget. Laboratory results indicate that the concentrate produced during the pilot plant tests contains 55.5% iron, upgraded from 5% in raw sand feed. In addition, bench-scale test work, completed by RDI Consultants, Denver, indicates that the iron concentrate can be further upgraded to 62.8% iron by screening out a portion of the concentrate that has a high relative concentration of silica. One tonne of iron ore concentrate has been shipped to the Natural Resources Research Institute (NRRI), Minnesota and test work is underway to further concentrate it through screening and other mineral separation techniques, targeting the production of a concentrate grade of 64% iron, which would be suitable for blast furnace sinter feed production. Iron fines for sinter feed production represent a large part of the iron input units market for integrated steel makers.
Cardero has retained SRK Consulting (Johannesburg) to complete a resource estimate and scoping study utilizing the information from the 120 resource definition drillholes at PET. SRK estimates that the results of the resource estimate will be completed in January 2009. The scoping study and Preliminary Economic Assessment will be completed thereafter.
Moving towards pig iron production, a commercial-scale melting test has been initiated in the United States. A 40 tonne consignment of PET iron concentrate shipped from Peru has cleared US customs. Melting tests will commence in the coming weeks and will be described more fully in subsequent news releases. Results are expected early in 2009.
IRON CONCENTRATE PRODUCTION
Pilot Plant Performance
Laboratory analysis of representative concentrate samples collected at regular intervals from the pilot plant stream indicates that the 46 tonnes of iron concentrate produced in May 2008 contain 55.5% iron (upgraded from 5% iron in the raw sand feed). The concentrate will be further characterized upon receipt at NRRI using more precise iron industry-standard techniques.
Further Concentrate Upgrade
Bench-scale test work undertaken by RDI Consultants has demonstrated that the PET concentrate can be upgraded to 62.8% iron through physical screening so as to eliminate certain material in the concentrate with a high relative concentration of silica.
One tonne of iron ore concentrate produced from the PET pilot plant (through a simple two-stage dry magnetic separation process) has been shipped to NRRI and test work is underway to further upgrade it for the blast furnace sinter feed testing program.
