News Release 07-20
Cardero Resource Corp. ('Cardero' or the 'Company') -- (TSX: CDU, AMEX: CDY, Frankfurt: CR5) is pleased to announce that, following prolonged negotiations, a mutually acceptable settlement for all participants has been reached in the action commenced by Western Telluric Resources Inc. and Minera Olympic, S. de R.L. de C.V. against the Company and others with respect to certain of the mineral tenures held by the Company in Baja California State, Mexico. As a consequence of the settlement, Cardero is immediately able to recommence exploration on its exciting new discoveries in this newly recognized, frontier copper district. Details of the settlement are provided below.
Multi-disciplinary exploration by Cardero of the 500 kilometre Mesozoic sequence of Baja California, Mexico has successfully defined a new Iron Oxide Copper Gold (IOCG) district. The newly discovered district covers a minimum area of 60 kilometres northwest by 10-15 kilometres northeast (Figure 1). Detailed studies indicate that significant volumes of rock are pervasively altered and record a complex, multiphase iron oxide-sodic-potassic-calcic alteration assemblage with associated copper mineralization similar to that recorded in known productive IOCG districts.
Click to enlarge
Property-scale exploration and subsequent geophysically-driven drill testing adjacent to the historic San Fernando narrow vein mine revealed a large volcaniclastic hosted disseminated IOCG body measuring a minimum of 3 kilometres east - west by 1 kilometre north - south and 400 metres in depth.
The two westernmost boreholes, SF-05 and SF-09, are associated with pervasive potassic alteration and returned 273.5 metres of 0.19% copper (including 31 metres of 0.96% copper) and 240.7 metres at 0.22% copper (including 47 metres at 0.74% copper), respectively. There has been no drilling west of these two boreholes and similar permissive potassic alteration extends a minimum of 2.5 kilometres further west, representing a high priority target area.
At the Picale prospect, 16 kilometres south of San Fernando, mapping has delineated an IOCG manto over an intermittent strike length of 5 kilometres. Subsequent drilling intersected predominantly massive magnetite over a minimum area of approximately 1 square kilometre. Highlights of the Picale drilling include the following individual borehole intersections: 6.5 metres at 4% copper and 0.4 g/t gold; 9.8 metres at 2.77% copper and 0.2 g/t gold; 2.5 metres at 10.1% copper and 0.64 g/t gold; 5 metres at 1.43% copper and 14.15 metres at 1.15% copper. A primary feeder zone for this high grade mineralization has yet to be found and remains an attractive target.
Elsewhere on the Company's extensive property holdings in the area are several other high quality bulk tonnage copper--gold targets which are permitted and drill ready and will be aggressively tested in due course.
The geological setting of Baja California shares similarities in tectonic setting, age, alteration and metallogeny to the Chilean IOCG district and, following the recent hiatus, the Company is committed to aggressively follow-up the numerous remaining targets in a timely manner.
For a detailed technical summary of the geological setting and exploration potential of the district, the reader is referred to a recent presentation (available on the Company's website -- please see link below) authored by Mark Cruise, Murray Hitzman and Gloria Lopez that was presented at the Arizona Geological Survey's Ore and Orogenesis Conference in late September, entitled: 'Baja California, Mexico -- New IOCG Discoveries in a Frontier District'.
The presentation is not a 'Technical Report', as defined in N.I. 43-101, but the complete presentation may be viewed at http://www.cardero.com/i/pdf/Presentation20071030.pdf
Settlement of Lawsuit
The subject action was commenced by Western Telluric Resources Inc. ('WTR') and Minera Olympic S. de R.L. de C.V. (the 'Plaintiffs') in May, 2004, against the Company and others. Since that time, the Company has been actively defending the action, including commencing a counterclaim against the Plaintiffs and others. Although the Company believes the action commenced by the Plaintiffs was unfounded, and that it would ultimately prevail should the matter come to court, the anticipated cost and expenditure of management's time and effort in connection with any trial would be significant. Accordingly, the Company has been actively working towards reaching acceptable settlement terms which would allow the action by the Plaintiffs, the Company's counterclaim and certain additional actions by others to be concluded and allow the Company to continue the exploration of its extensive Baja California holdings.
Pursuant to an agreement dated October 17, 2007 ('Settlement Agreement') among the Plaintiffs, the Company and all other parties to the various actions, all actions have been settled. As its part of the settlement, the Company has agreed to issue an aggregate of 500,000 shares to WTR and to grant to WTR a 1.5% net smelter returns royalty over its existing and future acquired Baja California properties, of which the Company can acquire one-half (0.75%) for the price of CAD 2,000,000. Fulfillment by the Company of its obligations under the Settlement Agreement is subject to the acceptance for filing thereof by the TSX. Closing of the transactions pursuant to the Settlement Agreement is anticipated to occur as soon as possible following the receipt of such acceptance for filing and the satisfaction by the other parties to the agreement of their respective conditions precedent.
EurGeol Dr. Mark D. Cruise, Cardero's Vice President-Business Development 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.
Cardero Resource Corp. 3 November 1, 2007 NR07-20 -- Continued
About Cardero Resource Corp.
The Company is currently exploring projects in Argentina, Mexico and Peru. It is actively evaluating new gold, copper and iron projects, while continuing to maintain an ongoing pipeline of prospects. 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). 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, President
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 the anticipated completion of the transactions under the settlement agreement, timing of future anticipated exploration programs and the results thereof and the potential discovery and delineation of mineral deposits/resources/reserves at the Company's Baja IOCG project. 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, the non-acceptance by the TSX of the settlement agreement, the failure of other parties to the settlement agreement to perform their respective obligations under that agreement, 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 to continue its operations or to be able to fully implement its planned 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.