Vancouver – Drilling at Cardero Resource’s (CDU-V) Pampa de Pongo project in southern Peru intersected extensive magnetite mineralization.
The final few holes of initial core drilling on the iron oxide-copper-gold (IOCG) project returned intercepts of over 300 metres of massive magnetite mineralization grading 52% iron.
Since initiating its exploration effort in early-2004, Cardero has completed a 14-hole, 4,600-metre drill program focused on surface mapping and electromagnetic-magnetic geophysical survey defined targets. The initial several holes aimed at copper targets met with limited success.
The second stage of drilling successfully targeted extensions of known iron mineralization at the project. Hole 21, testing a 3-D magnetic model in the Central zone, cut a wide intercept of magnetite mineralization over several hundred metres with the last 300 metres of core averaging 51.6% iron, 0.1% copper and trace gold. Grades increased further downhole and mineralization is open to depth.
The Central zone is interpreted as flat-lying, semi-massive to massive replacement lens estimated at up to 370 metres thick and over 600 metres across.
Pampa de Pongo was discovered by Rio Tinto (RTP-N) during the mid-1990s in its regional hunt for IOCG deposits. Widely-spaced drilling conducted by the major identified an extensively mineralized system resulting in an estimated, undefined resource of about one million tonnes grading 75% magnetite (pure magnetite typically ranges from 60-68% iron). Rio Tinto’s preliminary metallurgical testing indicated simple magnetic separation could produce saleable concentrates of 66-69% iron.
Cardero is earning a 100% interest in Pampa de Pongo from Rio Tinto for staged payments totaling US$500,000 over four years.
The project, located about 400 km south of Lima, is in close proximity to the large Chinese-operated Marcona Iron mine (resources of 1.4 billion tonnes at 54% iron) and to the Mina Justa copper deposit (inferred resource of 218 million tonnes at 0.8% copper) being optioned by Chariot Resources (CHD-V), Korea Resources and LG-Nikko Copper from Rio Tinto. Deep sea port facilities are also nearby to service the existing mining operations in the region.
In addition to its Pampa de Pongo project, Cardero hold a number of other IOCG prospective properties in Argentina, Mexico and Peru.
With 41 million shares outstanding, Cardero posts a market capitalization of almost $150 million given its recent trading price of $3.60 per share. The issue is near the upper end of its 52-week trading range of $1.84-to-$4.10.