VANCOUVER — Cardero Resources (CDU-T, CDY-X) has taken a big step forward at the Pampa El Toro iron sands project in Peru with completion of the project’s first resource estimate.
Cardero pegs Pampa El Toro’s indicated resource at 241.8 million tonnes grading 6.66% Fe2O3, 0.72% TiO2 and 0.0172% vanadium. The inferred resource stands at 629.9 million tonnes grading 6.48% Fe2O3, 0.7% TiO2 and 0.0166% vanadium.
Cardero is calling it an initial resource estimate as there appears to be substantial potential to expand the resource at depth and in all directions. The resource estimate encompasses about 13% of the 122-sq.- km concession and only goes to a depth of about 30 metres.
But Cardero reports similar grades beyond the resource area and to a depth of 60 metres. Cardero’s consultant on the estimate, SRK, chose the 30-metre depth as a conceptual mining depth for a 30-year mine life.
The resource estimate, Cardero says, advances Pampa El Toro closer to potential development as a large bulk-tonnage operation. The property is 45 km away from the port of San Juan.
An onsite bulk-testing program using magnetic separation has shown that the iron sands can be concentrated to commercial grades in the 65.1% iron range, Cardero reports. Furthermore, the company says, metallurgical studies, which are ongoing, show that iron can be concentrated to more than 90% iron, or premium quality pig iron.
The latter concentration process will potentially produce payable titanium and vanadium credits in slag, Cardero says.
Currently, Cardero reports it is testing the potential of commercially producing pig iron through the U. S. Department of Energy’s National Energy Technology Lab in Albany, Ore.
Cardero shares gained 4¢ on news of the resource estimate to close at $1.13. The company has about 58.5 million shares outstanding.
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