Indicated Resource of 241.8 million tonnes at 6.66% Fe2O3, 0.72% TiO2 & 172 ppm V
Inferred Resource of 629.9 million tonnes at 6.48% Fe2O3, 0.70% TiO2 and 166 ppm V
Mineralization remains open to depth and in all directions
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/21/09 -- The following corrects and replaces the release disseminated today at 9:28 AM ET. In the second paragraph, "6 metres" has been changed to "60 metres".
Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE Amex: CDY)(FRANKFURT: CR5) is pleased to announce that it has received an initial mineral resource estimate for the Pampa El Toro Iron Sands deposit in south-western Peru from SRK Consulting (South Africa) Inc. (SRK). Indicated and inferred resources have been defined over an approximate area of 1,595 hectares (approximately 13% of the total 12,200 hectare Pampa El Toro concession area, Figure 1: http://media3.marketwire.com/docs/cdu721.pdf), and only to a nominal depth of 30 metres from surface, as follows:
Category Volume m(3) Tonnes Fe2O3 % TiO2 % V (ppm)
--------- ----------- ----------- ------ ----- -------
Indicated 133,608,000 241,831,000 6.66% 0.72% 172 ppm
Inferred 348,000,000 629,881,000 6.48% 0.70% 166 ppm
Although a 30-metre cut-off depth was selected by SRK - as a conceptual mining depth to provide a 30-year life-of-mine (LOM) - drill testing of dune sand has been undertaken up to 60 metres depth in certain drillholes and has returned similar grades.
"This initial resource estimate advances Cardero's Pampa El Toro project towards anticipated development as a large bulk-tonnage iron-titanium-vanadium operation," stated Henk van Alphen, Cardero's President and CEO. "These very positive results give Cardero the confidence to advance the project to the next stage, particularly given its low-cost operating potential and anticipated quick development time."
Previous bulk testing in a pilot plant scale magnetic concentrator clearly demonstrated that iron mineralization readily upgrades from the 'Run-Of-Mine' grades outlined above to produce commercial grade iron concentrates of 65.1% Fe (see NR08-28). Additionally, various melting/metallurgical studies since the project's inception in 2005 indicates the resultant iron concentrate can be further upgraded to produce premium quality (+90% iron) Pig Iron with potentially payable titanium & vanadium reporting to the slag (see NR08-29).
Future Work
The Company, in cooperation with the U. S. Department of Energy (DOE)'s National Energy Technology Lab (NETL) in Albany, Oregon, is undertaking a pilot-scale melt test of 'run-of mine' iron concentrate designed to further test pig iron production on a commercial scale. The tests are also producing slag material for ongoing by-product titanium and vanadium recovery tests underway at a different facility.
The Company will proceed with the advanced pyrometalurgical testing as outlined above as the results of this testing will add significant value in terms of potential high-quality pig-iron and titanium-vanadium co-products.
Resource Calculation and Assumptions
SRK generated a Mineral Resource Estimate based on the data supplied by the Company. The effective date of the Pampa El Toro Resource Estimate Technical Report is 17 July, 2009. No cut-off grade or capping has been applied to the resources due to the homogeneity of the grade. Resources were classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves. The Resource Estimate was determined using 718 assay results (each representing 5 metre composite samples for the selected set of elements) from 112 drillholes. The data was analysed and found to represent a single population of all elements. There are strong correlations between the major economic elements (Fe2O3, TiO2, and V) that indicate a common genetic and depositional history. This indicates that these elements are most likely contained within the same, or strongly associated, minerals.
The surface topography contours were used to generate a wireframe representation of the topography. This surface was extrapolated vertically downwards by 30 metres, and used to constrain the depth extent of the Mineral Resource estimate. The 30 metre cut-off depth was selected as a conceptual mining depth to provide a 30-year life-of-mine (LOM). The dune sand has been analyzed to 60 metres below surface in certain drillholes and has been found to continue at similar grades, where such analysis was conducted. This mineralization does not form part of the current Resource Estimate and further analysis would have to be conducted to verify the existence of continuous mineralization.
SRK generated and modeled experimental semi-variograms that indicate long range continuity in the major elements, but that also indicate a long range trend element within the deposit in a north-south direction. Cross-validation tests conducted by SRK on the semi-variograms indicate that the modelled semi-variograms and the selected search neighbourhood parameters should provide robust estimates. The assay and drillhole database and resource estimate was validated by SRK and found to be appropriate for the estimation of mineral resources. SRK is not aware of any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues that would materially affect the mineral resources.
SRK created a block model with a block size equivalent to the nominal drillhole spacing of 250 metres horizontal (X and Y) directions, and 5 metres vertically. The block model was rotated to approximately match the dip of the topographic surface, which coincided with the plane of best continuity. In order to better model the volume and the topographic variations, the parent blocks were sub-divided into smaller blocks, with a minimum size in the X-Y plane of 6.25 metres by 6.25 metres. The blocks were created to exactly match the intersection of the wireframe with the block center.
