Subject to regulatory approval, Cardero has the right to acquire a 100% interest in MMC by completing payments of cash and shares in the capital stock of the Company to MMC as follows:
Ten days following TSX-V acceptance for filing of the acquisition agreement
One year following TSX-V acceptance date
Two years following TSX-V acceptance date
The concessions held by MMC total 8,055 hectares, most of which were acquired by staking. However within the concessions, three properties totalling 30 hectares are subject to an agreement whereby MMC can earn a 100% interest in the three properties by making cash payments to a third party totalling US$80,000 prior to March 15, 2004.
Olympic Dam Project
This acquisition of MMC will increase the area of mineral concessions controlled by Cardero in northwest Mexico to over 17,500 hectares. A significant proportion of this area protects several very attractive iron and copper-iron prospects, which have the potential to host iron oxide style copper-gold deposits of the Olympic Dam type. The Company is currently in discussions with third parties with the intention to advance the Olympic Dam Projects through joint venture.
Ludavina Gold Discovery
The Ludavina gold project, covering 3,500 hectares, is located approximately 7 kilometres east of the town of San Quintin in the State of Baja California, Mexico. The property is both road accessible and situated adjacent to infrastructure. To date no modern exploration has been carried out on the property. A few artisanal workings have been located on some of the more prominent areas.
The project encompasses an extensive, high level, epithermal, gold-bearing system hosted by Cretaceous aged mafic to intermediate volcanic rocks. Preliminary mapping of the alteration and veining associated with the system defines a broad, north to northeast-trending target area that is more than 7 kilometres long and 2 to 2.5 kilometres wide. The gold-bearing system is located proximal to a 12 kilometre wide inferred caldera structure. Calderas are large scale circular, volcano related structures, often associated with significant gold deposits such as the 11 million ounce Round Mountain mine in Nevada and the 5 million ounce Kori Kollo mine in Bolivia.
Preliminary geological mapping and geochemical sampling have been completed on the property. Mapping to date has identified epithermal style quartz veins, silica cap alteration zones and hot-springs related sinter terrace deposits. Initial chip sampling targeted the epithermal veins, silica cap alteration and sinter deposits. Analytical results for gold vary from detection limit up to 31 grams/tonne (g/t). This initial work has identified five (5) zones of potential gold mineralization.
The South Zone encompasses a 700 by 100 metre zone of pervasive silica alteration. Initial chip sampling at one location within the South Zone returned 7.3 g/t gold over 35 metres. The remaining 8 chip samples from this zone ranged from 7 parts per billion (ppb) up to 3.6 g/t gold.
Twenty-eight chip samples, with gold values in excess of 50 ppb and up to 31 g/t gold, define a 1,000 metre by 300 metre area known as the Discovery Ridge Zone. This zone is located about 1.5 kilometres northwest of the South Zone. Alteration and vein structures in the zone are related to the gold mineralization. An association of gold with elevated copper, lead, zinc, molybdenum, barium and silver values has been noted.
The Basin Zone is a 700 metre long by 200 metre wide area with hot-spring and sinter deposits located immediately adjacent to the northwest perimeter of the Discovery Ridge Zone. Typically, sinters related to gold deposits do not themselves exhibit gold values, however one sample of finely banded chalcedony returned a value of 33 ppb gold. The Basin Zone sinter, topographically lower than the Discovery Ridge Zone, is interpreted to be a down faulted block and thus potentially a completely preserved extension of the Discovery Ridge Zone.
The Company proposes to undertake detailed surface exploration of this exciting new property in order to define targets for subsequent drill evaluation.
Cardero Resource Corp. is a mineral exploration and development company listed on the TSX Venture Exchange. The Company is actively evaluating silver, gold and copper projects that have the potential to contain world class, company building mineral deposits.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
Henk Van Alphen, President
For further information contact: Henk Van Alphen, President
Phone: (604) 408-7488
Fax: (604) 408-7499
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release which has been prepared by management.