To date, Cardero has undertaken detailed mapping and surface geochemical sampling, which defined a large porphyry system with 'text book' alteration, multi-phase quartz-sulphide stockwork development and multiple intrusive events. The mapping and subsequent drill testing has confirmed that the mineralized porphyry system extends over 550 metres north-south, 300 metres east-west, and greater than 300 metres vertically.
Most recently, an initial 9 hole drill program was completed in March 2007, of which only 3 drillholes tested the productive phase of the porphyry system (figure 1), with additional holes in the Oro Rico Stock, the Canyon Stock, and to the north within a mineralized (pyrite) halo.
Current knowledge of the porphyry system is good, given the excellent surface exposure and the receipt of the Phase I drill results. Several Phase I drill holes show an increase in copper grade toward the west and with depth. The system is open to the west and northwest under broadly contemporaneous volcanic cover and at depth. However additional drilling is required to establish ultimate size and grade potential.
IP Survey Details
As the mineralized system remains open, an IP Survey will be utilized to delineate disseminated sulphide mineralization within those parts of the system not exposed at surface. This will ensure that Phase II drill targets focus on the interpreted core of the system. The IP survey will also test the area underlying significant peripheral 'leakage' veining, 800 metres west of the productive porphyry, which ranges from 1.62 up to 9.4% copper (average 4%) 2.67 to 50.2 g/t gold (average 16.9 g/t) and 18 to 154 g/t silver (average 73 g/t) as well as anomalous lead and zinc values.
The survey is scheduled commence in the first week of June and will be completed within a 14 day period. Thereafter, the results will be processed and integrated with existing data to provide the best possible interpretation with which to plan the Phase II drilling program, currently scheduled for late 2007.
IP is a proven geophysical technology that has directly or indirectly resulted in the discovery of significant concentrations of disseminated sulphide mineralization in large porphyry systems such as Huachi. It should be noted that the technique is unable to differentiate between productive and non-productive mineralization and is most commonly utilized to geophysically map the hydrothermal system under cover and at depth. The targets generated will have to then be drill tested to determine the extent of mineralization.
Figure 1: Location of Planned IP Survey
(highlighting the 3 drill holes in the productive phase of the porphyry)
Qualified Person and Quality Control;/Quality Assurance
EurGeol Keith J. Henderson, Cardero's Vice President-Exploration and a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release.
The work program at Huachi was designed and is supervised by Steve Enns, P. Geo. and Mike Henrichsen, P. Geo., independent geological consultants, who are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ALS Chemex for assay. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Cardero personnel in order to independently assess analytical accuracy. Finally, representative blind duplicate samples are forwarded to ALS Chemex and an ISO compliant third party laboratory for additional quality control.
Cardero is well financed and positioned to continue to explore its projects in Mexico, Peru, and Argentina. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the American Stock Exchange (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). The Company is actively evaluating new gold, copper and iron projects, and continues to maintain an active pipeline of prospects. For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov.
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
'Hendrik Van Alphen' (signed)
Hendrik Van Alphen, Chief Executive Officer
Quentin Mai, Manager -- Corporate Communications & Investor Relations
Phone: 1-888-770-7488 (604) 408-7488 / Fax: (604) 408-7499
The Toronto Stock 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.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding future anticipated exploration programs and the timing and results thereof, the discovery and delineation of mineral deposits/resources/reserves at the Company's Huachi project, financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, potential and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the inability of the Company to obtain any necessary permits, consents or authorizations required for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, the inability of the Company to continue its projected growth, the inability of the Company to raise the necessary capital or to be fully able to implement its business strategies.
All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States disclosure filings via www.sec.gov and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
Cardero Resource Corp. ('Cardero' or the 'Company') -- (TSX: CDU, AMEX: CDY, Frankfurt: CR5) is pleased to announce that an Induced Polarization (IP) Geophysical Survey will be initiated in early June on its 100% owned Huachi Copper-Gold Porphyry project, San Juan Province, NW Argentina. The IP survey will follow-up on the successful Phase I drill program, which intersected significant Copper-Gold mineralization, including the best intercept of 243 metres @ 0.56 CuEq (see NR07-10 and 07-06 for details).