Cardero gets Pampa de Pongo iron resource

Vancouver – Cardero Resource (CDU-V) has received an independent resource estimate for its Pampa de Pongo iron project in southern Peru.

The deposit hosts an inferred resource of 953 million tonnes grading 44.7% iron, plus 0.12% copper and 0.09 gram gold per tonne, in the Central and South zones. The NI 43-101 compliant calculation was based on Cardero’s 2004-05 drilling and 3-D magnetic modeling, and past drilling by Rio Tinto (RTP-N).

Earlier this year, drilling intersected extensive magnetite mineralization, with the final few holes at the iron-oxide copper-gold (IOCG) project returning intercepts of over 300 metres of massive magnetite grading 52% iron.

The Central zone is interpreted as flat-lying, semi-massive to massive magnetite replacement lens estimated at up to 370 metres thick and over 600 metres across.

Extensive magnetite at Pampa de Pongo was first discovered by Rio Tinto during its mid-1990s regional hunt for IOCG deposits. Widely-spaced drilling identified an extensive mineralized system resulting in an estimated, undefined resource of about one billion tonnes grading 75% magnetite (pure magnetite typically ranges 60-68% iron). Preliminary metallurgical testing indicated simple low-intensity magnetic separation would produce saleable concentrates of 66-69% iron.

Replacement magnetite, along with lesser specularite and copper sulphide mineralization, is primarily hosted in dolomites and overlying andesitic volcanics in the IOCG environment. The project is in the Marcona iron-copper district, a northern extension of an IOCG-belt in Chile that hosts Phelps Dodge’s (PD-N) Candelaria and Anglo American’s (AAUK-Q) Mantos Blancos deposits.

Cardero is earning a 100% interest in 8,000 hectare project from Rio Tinto for staged payments totaling US$500,000 over four years.

Shares of Cardero recently rallied about 15%, to the $3.50-level. With 41.1 million shares outstanding, the company posts a market capitalization of $144 million.