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"As the Director, Investor Relations, of Cardero, Andrew's immediate responsibilities will be to work with senior management to expand the institutional shareholder base and communicate the corporate direction for development of the Company's Carbon Creek Metallurgical Coal Project."
Cardero Appoints Andrew Muir as Director, Investor Relations Date : 01/07/2013 @ 8:00AM
Source : MarketWire
Stock : Cardero Resource Corp. Ordinary Shares (CDY)
Quote : 0.42 0.0 (0.00%) @ 2:05AM
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU) (NYSE Amex:CDY) (NYSE MKT:CDY) (FRANKFURT:CR5) announces the continued expansion of its management team with the appointment of former Mining Analyst and Investment Advisor, Andrew Muir as Director, Investor Relations of the Company, effective January 3, 2013.
Mr. Andrew Muir - Director, Investor Relations
Mr. Muir holds a Bachelor of Science (Honours) in Geology from the University of British Columbia and the Chartered Financial Analysts (CFA) designation. He joins Cardero from Haywood Securities Inc. in Vancouver, an independent full service investment dealer, where he served as an Investment Advisor building and managing retail and institutional relationships. Prior to Haywood, Mr. Muir was a highly regarded Mining Analyst with Vancouver based investment dealers Canaccord Capital Corporation, PI Financial Corp., and Yorkton Securities Inc.
Mr. Muir replaces Nancy Curry who was responsible for Cardero's corporate communications. He has been in the investment industry for over 25 years and brings extensive expertise in identifying and communicating investment opportunities, client development, trading, capital introductions, and risk management. Andrew also provides substantial experience in evaluating and presenting resource companies that specialize in developing minerals and bulk materials including coal and iron ore.
As the Director, Investor Relations, of Cardero, Andrew's immediate responsibilities will be to work with senior management to expand the institutional shareholder base and communicate the corporate direction for development of the Company's Carbon Creek Metallurgical Coal Project.
Cardero has added significant depth to its management team over the past six months beginning with the appointment of Angus Christie as Chief Operating Officer in June 2012. That was followed with the appointments of Lee Harris as Director, Material Handling in August, David Thompson as Project Manager in September and Bob Osborne as Director of Community Relations in November.
On his appointment, Mr. Muir stated "I believe that the Carbon Creek deposit is a "best in class" metallurgical coal asset that has proved itself to be one of the largest contiguous deposits in the Peace River region. The recent pre-feasibility study shows the potential for this project to have the largest and lowest cost production profile in the district. I am looking forward to communicating the value of this unique deposit to new investors that will realize its significant potential".
Company President & CEO, Michael Hunter, remarked "Mr. Muir's background and market experience compliments a highly skilled and dedicated team that is motivated to unlock the value of the Carbon Creek asset and deliver that profitability to our shareholders. With the addition of Andrew Muir, the Company has better positioned itself to ensure timely and accurate information is delivered to our shareholders and to the capital markets. We intend to make other key additions to the team in 2013."
Mr. Muir has been granted 200,000 options exercisable at a price of CAD 0.45 for a period of two years.
ABOUT CARBON CREEK
The Carbon Creek deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The project has a current resource estimate of 468 million tonnes of measured and indicated, with an initial reserve of 121 million tonnes of proven and probable, ASTM Coal Rank mvB coal. The Company released results of an independent Pre-Feasibility Study ("PFS") (including an updated resource estimate) in September 2012, which estimates that the Company will generate a post-tax, undiscounted cash flow of USD 2.1 billion based on production of 4.1 million tonnes of saleable metallurgical coal products per annum.
The Company cautions that the accuracy of resource and reserve estimates is, in part, a function of the quality and quantity of available data and of engineering and geological interpretation and judgment. Given the data available at the time the PFS report was prepared, the estimates presented therein are considered reasonable. However, they should be accepted with the understanding that additional data and analysis available subsequent to the date of the estimates may necessitate revision. These revisions may be material. There is no guarantee that all or any part of the estimated resources will be recoverable. Mineral resources are not mineral reserves and there is no assurance that any mineral resources will ultimately be reclassified as proven or probable reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources have been excluded from the PFS for the purposes of mine planning and financial evaluation. Mineral reserves are included in measured and indicated mineral resources.
Investors are urged to read the November 6, 2012 43-101 Technical Report by Norwest Corporation (available on SEDAR or from the Company's website) in its entirety for full details of the PFS, including the assumptions underlying the PFS.
ABOUT CARDERO RESOURCE CORP.
The common shares of the Company are currently listed on the TSX (symbol CDU), the NYSE-MKT (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the discovery and delineation of mineral deposits/resources/reserves, the potential for the making of a production decision to proceed with a mine at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, the potential for any production from the Carbon Creek deposit whether by 2014 or at all, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in the prefeasibility study may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988 (the "GSC Paper").
United States shareholders are cautioned that the requirements and terminology of NI 43-101, the CIM Standards and the GSC Paper differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
Contacts:
Cardero Resource Corp.
Andrew Muir
Director, Investor Relations
Direct Tel: 604 638-3287 or Toll Free: 1-888-770-7488
amuir@cardero.com
www.cardero.com
Cardero's Carbon Creek Environmental Assessment Advances to the Issuance of a Section 11 Order
Date : 12/03/2012 @ 8:00AM
Source : MarketWire
Stock : Cardero Resource Corp. Ordinary Shares (CDY)
Quote : 0.44 -0.03 (-6.38%) @ 2:27PM
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU) (NYSE MKT:CDY) (NYSE Amex:CDY) (FRANKFURT:C5R) announces that the BC Environmental Assessment Office ("EAO") has issued a decision under Section 11 of the Environmental Assessment Act (BC) ("EAA") regarding the Carbon Creek Metallurgical Coal Project. This milestone is a critical step in the process of securing a permit to operate a mine and means that the Carbon Creek Project is well into the 'Pre-Application" phase of the Environmental Assessment ("EA") process. The Company also announces that it has appointed Mr. Bob Osborne as the Director, Community Relations.
Section 11 Order
The Section 11 Order specifies the scope, procedures, and methods by which the Carbon Creek Project EA review is to be conducted.
In addition, a working group, including representatives of First Nations groups and federal, provincial and local government agencies, has been established and met for the first time on July 24th and 25th, 2012. This working group will be involved in the review of EA studies and documentation, including the draft Application Information Requirements ("AIR"), relating to the EA process.
The Section 11 Order is made publicly available on the EAO's e-PIC website (http://a100.gov.bc.ca/appsdata/epic/html/deploy/epic_home.html) as the background material supporting the decision under the EAA.
The next stage in the EA process is for the Company to prepare the draft AIR for review by the EAO, the working group and First Nations and, subsequently, the public.
Mr. Bob Osborne - Director, Community Relations
The Company also announces that Mr. Bob Osborne has been appointed as the Director, Community Relations, effective October 1, 2012. Bob will be working closely with local communities and First Nations to continue positive, open working relationships on behalf of the Company as the Carbon Creek Project progresses towards a production decision and anticipated subsequent development.
On discussing his appointment, President & CEO, Michael Hunter stated, "We are very pleased to have Bob join the Cardero Coal team. His background and experience will be a significant asset to Cardero as we continue to develop and enhance our relationships with stakeholders, communities and First Nations in the region."
Mr. Osborne has more than 25 years' experience in First Nations and community relations and consultation. Bob worked for several years with the BC Environmental Assessment Office consulting on major projects and, more recently, with the BC Ministries of Energy and Mines and Forests Lands and Natural Resource Operations on major mines in the province. Previously, Bob also spent four years with the Okanagan Indian Band as their Director of Community Development.
ABOUT CARDERO RESOURCE CORP.
The common shares of the Company are currently listed on the TSX (symbol CDU), the NYSE-MKT (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for the Company to receive the permits necessary to operate a mine at Carbon Creek, the potential for the making of a production decision to proceed with a mine at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in the prefeasibility study may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined.
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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Contacts:
Cardero Resource Corp.
Michael Hunter
CEO and President
604 638-3289
Cardero Resource Corp.
Toll Free: 1-888-770-7488
604 408-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
This guy claims:
"Valuation
The current enterprise value is only 14% of the estimated NPV of $633 million, while similar comparable sales transactions on the company's mineable coal reveals a similar discrepancy between price and value. As it stands today, Cardero's stock price is the lowest it has been in 9 years, while the prospects have never been better. We have a company with basically no debt, good management, and presence in a prolific mining region that has undergone heavy consolidation by the big boys in the area.
Valuation was looked at using three methodologies: Proven and Probable Reserves, NPV, and Measured and Indicated resources.
Proven and Probable Reserves
In October of last year, Xstrata bought Cline's Lossan property. The deposit itself contained 186 million tons in the measured and indicated category but of that amount, only 14 million was estimated to be mineable. The Lossan deposit consists of about 41% PCI coal and 59% coking coal. Although there is a mixture of PCI coal at Carbon Creek, it is a mix with higher quality semi-soft coal as opposed to Lossan, of which 41% was classified as PCI.
This is as good a comparable sales transaction as any, considering the coal is of similar quality and both are located in the Peace River Coalfield. When the Lossan deposit was taken out, coking coal prices were around $280 or so, which worked out to roughly $2.86 per mineable ton in the ground for Lossan. Since then, met coal prices have come down close to 40%, making it far from reality as a starting point. Factoring in that the great commodities run of the past 10 years or so could be coming to an end (or at least stalling out), using the current met coal price of around $170 seems like a good place to begin.
Under this scenario, the recent $170 a ton price gives us a per mineable ton value of around $1.70 ($2.80x0.60). If we multiply this figure by Cardero's 75% interest of 121 million proven and probable reserve tons, we end up with a value of about $155 million. Divide this by the company's 131 million shares (after private placement) and we end up with $1.20 per share versus the current share price of $0.53 cents.
Let us make an assumption that demand from China and others really falls off a cliff and the price drops a further 30% before settling at around $1.15 per ton of proven and probable reserves. At this price, we get a valuation of around $105 million or $0.80 per share. Assuming this case, we still have a potential upside of over 50%. As it stands today, Cardero's coal in the ground is being priced at only $0.73 per ton of proven and probable reserves given its enterprise value after adjusting for the soon to be increased share count.
Net present value
If we use Cardero's base case NPV of the project which assumes long-term met coal pricing of $174 a ton and uses a discount rate of 8%, we get $633 million. How much would a potential acquirer offer to take Cardero out? What is an acceptable discount to NPV? 25 percent? 50 percent? If we use a 25 percent discount, this would give us an acquisition price of $356 million (Cardero's 75% interest and the 25% discount) or about $2.70 per share.
If we use the low case NPV for the project, which assumes long-term met coal pricing of $143 a ton and uses a discount rate of 8%, we get $191 million. If we take a 25 percent discount from this, we end up with an acquisition price of $107 million or close to $0.82 a share. Not nearly as attractive but still a potential upside of close to 55%.
Are the discount rates used too low? Are the long-term coal prices too optimistic? You can play around with these numbers until the cows come home but under this method and these assumptions (which I believe are quite conservative) an adequate margin of safety exists considering the enterprise value right now is just 14% of the NPV.
Measured and Indicated Resources
When Xstrata purchased Talisman Energy's Sukunka deposit in March of 2011, it did so at a price of $500 million or $2.12 for each of the project's 236 million tons in measured and indicated resource. If we apply the 40% or so haircut that coking prices have taken since then and multiply it towards Cardero's 75% interest in Carbon Creek's 468 million measured and indicated tons, we get a figure of around $445 million for the deposit or around $3.40 a share.
The simple chart below reveals several of the acquisitions in the Peace River Coal field and the prices paid.
Acquiree M&I tons Acquisition price Reserves Price/M&I Price/Reserve
Western Coal total 342 $3.3b 189.7m $9.64 $17
Western Coal Canada 242 ------- 142m ------ $23
Cline Mining 186 $40m 14m $0.21 $2.85
Grande Cache 346 $1b 137m $2.89 $7.29
Sukunka 236 $500m ------- $2.12 ------
Cardero 468 $66m EV 121m $0.19 $0.73
Cardero's current enterprise value is around $66 million, based on their recent private placement of 22.5 million shares and reflecting the recent $11 million in debt financing. The Price/M&I and Price/Reserve are based on the adjusted market capitalization as well as the 75% interest in the coal reserves.
We have to take the figures above with a grain of salt as when these deposits/companies were acquired, coking coal prices were much higher as well as the outlook was much more favorable. Even with these factors taken into account, Cardero's measured and indicated tons are being valued at only $0.19 cents (75% ownership) and its proven and probable reserves at only $0.73.
All told, we end up with a very wide valuation range with these techniques, but if the assumptions used are in the ballpark of reality, an estimated intrinsic value is perhaps between $0.82 on the very low end to $3.40 or so on the high end. I've always liked the Buffett quote that if you actually have to sit down and calculate the value it's just too close. The value should jump up at you.
While market sentiment cannot be ignored entirely, I'm prepared to wait for price and value to come into some sort of equilibrium from the heavily discounted price the shares are currently fetching."
http://seekingalpha.com/article/985141-another-interesting-speculation-in-the-micro-cap-coal-space?source=yahoo
the only comment is more telling...
"I think the lack of comments on this excellent article shows just how under the radar CDY is, which helps explain how it could have drifted down so far under its worst case intrinsic value."
Does it MATTER what something's "value" is
if no one wants to buy it???
NOPE!
:(
I like hearing ALL ideas/thoughts...
and there are so few people that visit this board
that I doubt anyone would mind.
The main reason I bought into CDY
was their properties in N Minnesota
that are in the vacinity of where I live.
I have VERY limited geo knowledge,
but always looking to learn more on any topic :)
I think it is well worth understanding...
Some, of course, is the obvious in the market reality, right now, in most commodity focused businesses... here. Looking at the stocks as a group, you'd have to conclude that real economic activity, at least in that focus in the use of basic materials, is stuck at levels already well below the bottom that occurred following the crash in 2008... and, I think that's probably a true statement. Real growth in demand is occurring in India, and in China... a bit in the rest of the lesser developed world that isn't choking on debt... and pretty much no where else.
That market concern obviously explains a lot, for others... but, not everything that you'd care about here.
My opinion is that seeing that impact on CDY reflects an early (?) indicator of a shift in the market focus that is occurring, still being recognized only gradually, but beginning to have a bit more obvious market impact now...
If you look at CDY's prior enterprises, they made good money by finding large and readily developed deposits which they took up, did some basic exploration and development work on, and then turned into significant profit for CDY holders by selling them off as "improved" properties, lock stock and barrel, to their customers, only at a hefty mark up. It's a great model that solidly leverages their expertise in "finding"...
Now, they're looking to repeat that prior proven success, with new developments in iron (again) and metallurgical coal. They've also used prior successes to fund investments in equity stakes in a couple of gold focused exploration outfits... but its the iron and coal that are the operational focus...
Given the shifting nature of the time pressures in the commodity markets, now, with demand soft and supply adequate, or more, the customers have shifted focus, too. Given a bit of time, and a bit of help, there's no reason the customers can't go out and find similar/comparable opportunities themselves, and get "a better deal" by focusing more of their own $ and effort a bit earlier in the exploration cycle...
So, like anything else in the market, it's a pretty big deal in the valuation of mining projects to have the underpinning of price support... from an awareness that there are willing customers who are expected to be the buyers of what you're expecting to sell. If those former customers are already themselves fully engaged in funding earlier stage exploration projects that, with a bit of success, will be directly competing with your own... in meeting those customers future needs ???
The Chinese ARE shifting their focus that way, now. It's a shift that has been in the works and ongoing at a low level for a couple of years. They're getting a lot of help in the effort from Canadians, who'd rather have Chinese $ help in exploring and in funding the effort developing new potentials, rather than have it be limited to selling off proven values in the already existing "crown jewels" that are already in production now... having been funded to that stage by others. That's a positive trend for everyone, because it's not nearly as useful to foster growing competition for a finite and declining set of resources... as it is to make more resources available in order to meet future demand growth. Canada isn't resource limited. They've been investment limited... and, like everyone else... more limited as a result of the pernicious impact of the financial crisis... that has banks focused more and more on funding excess in government debt instead of productive economic activities. (rant, rant, etc.)
The Chinese have also already been burned a couple times recently, by "geopolitical risks" that they may not have properly considered or anticipated before sinking big $ into investments in some places that... scare the holy crap out of me as an investor. I think that they're rapidly learning to appreciate political stability paired with a culture and legal system that value and defend investment... at least in relation to their own investments in other countries.
So, I think CDY might be facing headwinds in "concern" by some investors that their prior successes in "flipping" properties... might not be as easily duplicated in the future... and, even if they are successful in marketing projects, they might not face an environment that enables similar dynamics in pricing, even if demand is hot... which right now it is not...
If that proves true... it becomes a bigger issue in terms of whose economic performance it is that your opportunities are tied to...
That's a risk they might address... either by altering the deal focus to complete some arrangements with customers somewhat earlier in the process... or by making the case that they intend to follow though on development efforts by funding projects through to production by themselves, becoming a production company... and not just a middle market development specialist that flips properties to others to put them into production.
The flip side of that set of risks for investors... is that there are parallel opportunities emerging, resulting from the shift in the market... that has large commodity consumers looking at shifting focus from being customers, to more direct participation in earlier stages of exploration and development...
Maybe not a bad idea to find out which juniors are well positioned to benefit from the trends that are occurring... and focus a bit of your $ on sharing those earlier stage risks with others... knowing that, with a bit of success, there's going to be a market waiting, that ensures that there will be follow on funding available to get successful exploration projects moved along from "proving up a find" to "making a production decision".
That's probably worth chatting about... but it would be off topic to do that, here...
Let me know where you'd like to go to have that discussion, if you'd like to have it ?
It is metallurgical coal, not coal used for power generation but it does seem to get caught up in the crap. Otherwise, I don't understand this right now.
What are your thoughts on the current pps?
WTH is going on?
I sure can't think of any reason this should be putting in new all time lows...
Yeah...I know...everyone hates coal.
I wish they'd focus LESS on the coal aspect!!!
But still...
What am I missing?
:(
Cardero Announces Positive Prefeasibility Study Results, Carbon Creek Deposit, Northeast British Columbia
http://finance.yahoo.com/news/retransmission-cardero-announces-positive-prefeasibility-110000291.html
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE MKT:CDY)(NYSE Amex:CDY)(FRANKFURT:CR5) announces the results of the Prefeasibility Study ("PFS") for the Carbon Creek Metallurgical Coal deposit, located in northeast British Columbia, Canada. Valuation highlights are summarized below:
---------------------------------------------------------------------
US$, Post-Tax, Post NPI Price(i) IRR NPV8 NPV10 NPV12
----------------------------------------------------------------------------
Best Case (5-year historical pricing)$187/t 27.0% $819M $616M $462M
Base Case(independent marketing consultant)$174/t 23.7% $633M $465M $338M
Low case (analyst consensus on long-term price)$143/t 13.1% $191M $99M $30M
----------------------------------------------------------------------------
Table 1: Carbon Creek Prefeasibility Valuation Results (Post-Tax, Post NPI).
(i)Price presented is average price based on relative proportions of coal
products sold over mine life: 60% Hard Coking Coal, 34% HV metallurgical
Coal, 6% Thermal (near-surface oxidized coal).
PREFEASIBILITY STUDY HIGHLIGHTS
Increased Measured & Indicated Resource from 166Mt to 468Mt
Established initial Proven and Probable Reserve of 121Mt (initial 20 year mine life)
Increased average clean coal production rate from 2.9Mtpa to 4.1Mtpa (2016 to 2034)
Total clean coal production currently estimated at 78.4Mt over mine life
Percentage of hard coking coal increased from 35% to 60% of planned production
Pre-production capital reduced to $217M from $301M
Capital of $475M required to bring the project to full production
Reduced operating cost from $114 to $110/tonne FOB
First coal production planned for Q4 2014
Positive cash-flow within three years of production
Base case NPV8 $633M on a post-tax, post NPI basis, with 23.7% IRR
Undiscounted cash flow valuation of $2,132M
All dollar values throughout this news release are in US$. Comparisons are drawn from the PEA.
Cardero Announces Additional Drill Results from the Sheini Hills Iron Project, Ghana
Date : 08/08/2012 @ 5:00PM
Source : MarketWire Canada
Cardero Resource Corp. (TSX:CDU)(NYSE MKT:CDY)(NYSE Amex:CDY)(FRANKFURT:CR5) -
Best intersections include:
Hole 15; 70.6 metres from surface, grading 38.1% Iron
Hole 17; 41.9 metres from surface, grading 39.1% Iron
Hole 18; 75.8 metres from surface, grading 37.9% Iron
Hole 20; 61.3 metres from surface, grading 38.5% Iron
Hole 28; 56.0 metres from surface, grading 38.8% Iron
Cardero Resource Corp. ("Cardero" or the "Company") announces receipt of
additional drill results from Phase I drilling at the Company's Sheini Hills
Iron Project, in north eastern Ghana.
Cardero continues to receive very positive drill results from the Sheini Hills
Iron Project in Ghana. Results from an additional 16 drill holes have been
delivered.
The best intersections from this batch are located on section 1009600N (To view
Figures 1-5 please visit the following link:
http://media3.marketwire.com/docs/CDU808F.pdf where three drill holes returned
an apparent average thickness of 59.7 metres with a weighted average grade of
38.38% iron. On section 1008800N, apparent ironstone intersections are thicker,
averaging 84.88 metres.
Cardero Receives Results of Airborne Magnetic Survey, Sheini Hills Iron Project, Ghana: Identifies Outcrop-Supported Explorat...
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE
Amex:CDY)(NYSE MKT:CDY)(FRANKFURT:CR5) announces receipt of airborne geophysical
data from Geotech Airborne Limited ("Geotech"). Interpretation of the magnetic
data has identified ironstone drill targets over 24 kilometres north-south, all
of which are supported by outcropping ironstones identified during recent
follow-up geological mapping. Definition of these targets is important since the
ironstone ridges currently being drilled in Phase I cover a strike length of
only 9 kilometres.
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/CDU-0731-fig1.pdf.
Magnetic Data Interpretation
Mineralization in the ironstone is predominantly haematite and as such is only
weakly magnetic. At these latitudes, close to the equator, magnetic anomalies
are negative and appear as low green to blue colours (Figures 2, 3 and 4:
http://media3.marketwire.com/docs/CDU-0731-figs2-3-4.pdf).
In the Phase I drill area, topography is pronounced, varying from 150 metre
plains to 465 metre ridges (Figures 2 and 4). In these areas ironstones are well
exposed and were easily mapped and targeted for drilling. In the southern area
of future drill targets (Figures 2 and 3), topography is much more subdued with
less pronounced ridges and generally less ironstone outcrop.
Following interpretation of the magnetic data, regional mapping was undertaken
to determine the level of outcrop support for the magnetic targets. Outcropping
ironstone was found to be coincident with all geophysical targets (Figure 3).
The density of outcrops in the southern area is less because of the limited
extent of mapping and the generally flatter terrain. Additional mapping will be
undertaken in the coming weeks.
Figures 3 and 4 are presented at the same scale allowing a comparison of the
drilled and targeted areas. The drilled area comprises 9 kilometres in strike
length, while the targeted area comprises 24 kilometres in strike length.
Geophysical Survey Specifications
The geophysical survey consisted of helicopter borne EM (a time-domain
electromagnetic VTEMplus system with Z and X component measurements), horizontal
magnetic gradiometer using two cesium magnetometers, and a 256 channel gamma ray
spectrometer (RSI ARGS RSX-5).
A total of 3,349 line-km of geophysical data were acquired during the survey.
The block was flown in a west to east (N 90 degrees E azimuth) direction with
traverse line spacing of 200 metres. Tie lines were flown perpendicular to the
traverse lines at a spacing of 2000 metres.
During the survey the helicopter was maintained at a mean altitude of 84 metres
above the ground with an average survey speed of 80 km/hour. This allowed for an
actual average EM bird terrain clearance of 47 metres and a magnetic sensor
clearance of 60 metres.
Geophysical Interpretation
Interpretation of the geophysical dataset was undertaken by Brian Williams, a
geophysical consultant with over 35 years worldwide exploration experience.
Mr. Williams worked closely with Cardero geologists on site to ensure that all
targeted areas were supported by geological evidence on the ground, increasing
the confidence levels in the anomalies identified.
Ironstone Ridges
Ironstone ridges are composed of two potential ore-types. Thinly banded
ironstones are considered to be primary Rapitan-type ironstones although an
epigenetic origin cannot be entirely ruled out. Associated diamictites,
sediments of probable glacial origin, are thought to be epigenetic and partially
replaced by haematite. Clasts in the diamictite are never replaced by haematite
and account for the generally lower grade of ironstone with clasts. The banded
ironstones rarely contain clasts and are generally higher grade.
The grade of ironstone intersections returned to date is partially dependent on
the relative proportions and thicknesses of the two ironstone facies in each
drill intersection. Drilling to date indicates a trend towards higher
proportions of banded ironstones in the north, which may explain the higher
grade intersected in drillhole SCD-009. Structural complexity is also important
as it often upgrades iron content. The drill program has been targeting
structurally complex areas to the north and assay results are anticipated in the
coming weeks.
Peripheral Ferricretes
Detrital iron deposits are found where weathering has eroded bedded iron
deposits and deposited ironstone fragments in natural traps formed by
topography. Some deposits are loose gravels while others are naturally cemented
(hematite conglomerate) and both types are found peripheral to the Sheini Hills
ironstone ridges.
When rock units break down under the weathering process they are often affected
by circulating groundwater. Under appropriate conditions they typically form
hard indurated zones such as ferricrete and laterite. At Sheini, drilling to
date indicates that the ferricrete layer averages approximately 10 metres in
thickness from surface.
The quality of the potential iron ore in these deposits depends on the grade and
quality of the iron particles making up the clasts in the conglomerate. At
Sheini, the ferricrete tends to be composed primarily of the higher-grade,
banded-type ironstone, rather than the lower-grade diamictite, which is easily
broken down by weathering processes.
Qualified Person
EurGeol Keith Henderson, PGeo, Cardero's Executive Vice President and a
qualified person as defined by National Instrument 43-101, has reviewed the
scientific and technical information that forms the basis for portions of this
news release, and has approved the disclosure herein. Mr. Henderson is not
independent of the Company, as he is an officer and shareholder.
QA/QC
At the end of each survey day, the Geotech aircrew transferred the survey from a
compact flash card (PCMCIA) to the data processing computer. The data were then
uploaded via ftp to the Geotech office in Aurora for daily quality assurance and
quality control by qualified personnel. As an additional step, Cardero employed
Kuncho Kunchev, a consulting geophysicist, to review the data as it became
available to ensure the survey was being flown within the contracted
specifications. Finally, Brian Williams, Cardero's consulting geophysicist,
reviewed all final delivered data prior to proceeding with the interpretation.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock
Exchange (symbol CDU), the NYSE-MKT (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking
information (collectively, "forward-looking statements") within the meaning of
applicable Canadian and US securities legislation. All statements, other than
statements of historical fact, included herein including, without limitation,
statements regarding the anticipated content, commencement and cost of
exploration programs, anticipated exploration program results, the discovery and
delineation of mineral deposits/resources/reserves, the timing for and
completion of a resource estimate for a portion of the Sheini deposit, the
ultimate nature and required expenditures of the work programs under the
prospecting licenses; business and financing plans and business trends, are
forward-looking statements. 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 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, variations in
the market for, and pricing of, any mineral products the Company may produce or
plan to produce, the Company's inability to obtain any necessary permits,
consents or authorizations required for its activities, the Company's inability
to produce minerals from its properties successfully or profitably, to continue
its projected growth, to raise the necessary capital or to be fully able to
implement its business strategies, and other risks and uncertainties disclosed
in the Company's 2012 Annual Information Form filed with certain securities
commissions in Canada and the Company's annual report on Form 40-F filed with
the United States Securities and Exchange Commission (the "SEC"), and other
information released by the Company and filed with the appropriate regulatory
agencies. All of the Company's Canadian public disclosure filings may be
accessed via www.sedar.com and its United States public disclosure filings may
be accessed 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.
NR12-18
Nice.
Great values and good intersections.
I've been noting a lot of coal stocks have been hitting long time lows, recently, and naturally, the Chinese have been back in the market, recently, buying up good properties with metallurgical grades, down near the lows.
I think we're also moving smartly past the point in the cycle where we've bottomed out in the pace of development in Chinese steel production. They've recently put another $10 billion in the kitty for "long lead time development funding" for steel industry supporting infrastructure, and there's evidence that money is beginning to reach the market, now.
Looks to me like CDY's plan are focused on Q4 this year, Q1 next year, when they should have both the iron and coal projects a bit further along in the development process...
Cardero Receives Additional Positive Drill Results, Sheini Hills Iron Project, Ghana
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE MKT:CDY)(NYSE Amex:CDY)(FRANKFURT:CR5) announces receipt of additional drill results from Phase I drilling at the Company's Sheini Hills Iron Project, Ghana.
Results include the best intersection to date; SCD-009, 0 - 57 metres grading 45.7% iron. This is the first result returned from the northern portion of the drilled area. The thickest iron intersection to date has also been returned from SCD-013, which intersected ironstone from 0 - 122 metres, grading 35.12% iron (including 17.4 metres from surface grading 43.55%).
PHASE I DRILL TESTING
SRK Consulting has been retained to calculate a maiden Resource Estimate, expected to be complete in Q4 2012. Phase I exploration at the Sheini Hills Iron project is targeting two main types of potential iron ore, both being haematite-dominated with negligible magnetite content:
Ironstone Ridges are being tested by approximately 9,000 metres of diamond drilling, of which 8,100 metres has been completed to date. A total of 59 diamond drill holes have been completed to date with results received for the first 14 drill holes.
In Phase I, ironstone ridges are being drilled over a strike length of 9 kilometres north-south and along section lines averaging approximately 600 metres east-west. Aggregate ironstone thickness to date ranges from 23.8 metres to 122.0 metres. Outcropping ironstones over an additional 9 kilometres of strike length have been targeted for future drill-testing.
Surface Ferricrete / Detrital Deposits will be tested by approximately 2,600 metres of reverse circulation drilling, of which 2,000 metres has been completed. No assay results have been received to date.
Drill testing of surface ferricretes will be completed over a mapped surface area of 20 square kilometres. Visual drill results to date indicate an average ferricrete thickness of 9.4 metres from surface. Ferricrete mapping indicates that an additional area of 16 square kilometres can be targeted for future drill testing.
To view Figure 1, visit the following link: http://media3.marketwire.com/docs/NR12_17_Figure1.jpg
Table 1: DRILL SECTION 1007170N
Drill hole From (m) To (m) Thickness (m) Iron Grade (%)
---------------------------------------------------------------------------
SCD-001 25 59.6 34.6 39.4
SCD-002 30 66.55 36.6 35
SCD-003 118 141.75 23.8 32.5
SCD-004 104.4 126.4 22 32.4
and 173 206.6 33.6 36.5
SCD-005 54.3 84.7 30.4 29.9
SCD-006 7.6 45.6 38 35.7
SCD-007 0 9.9 9.9 36.2
and 117.1 147.3 30.2 45.6
SCD-008 0 38 38 39.45
SCD-010 0 16.7 16.7 41.2
SCD-011 24.35 58.4 34.05 38.02
---------------------------------------------------------------------------
Average thickness / hole(i) 34.7
Weighted average grade(i) 36.9
(i) Drill holes SCD-001 to SCD-007 were previously reported (news release
NR12-13).All results now received for this drill section.Reported drill
intercepts are not true widths.At this time, there is insufficient data with
respect to the shape of the mineralization to calculate absolute true
thickness.
To view Figure 2, visit the following link: http://media3.marketwire.com/docs/NR12_17_Figure2.jpg
Table 2: DRILL SECTION 1008800N
Drill hole From (m) To (m) Thickness (m) Iron Grade (%)
---------------------------------------------------------------------------
SCD-012 57.7 147.35 89.65 35.1
SCD-013 0 122.3 122.3 35.12
incl. 0 17.4 17.4 43.55
SCD-014 143 200 57 30.7
incl. 155 176.15 21.15 36.6
SCD-015 pending
---------------------------------------------------------------------------
Average thickness / hole^ 42.7
Weighted average grade^ 36.5
^ Weighted average thickness and grade is based on included rather than full
intersections. Reported drill intercepts are based on apparent rather than
true thickness as there is insufficient data with respect to the shape of
the mineralization to calculate absolute true thickness. Results of one
drill hole pending.
To view Figure 3, visit the following link: http://media3.marketwire.com/docs/NR12_17_Figure3.jpg
Table 3: DRILL SECTION 1013600N
Drill hole From (m) To (m) Thickness (m) Iron Grade (%)
---------------------------------------------------------------------------
SCD-009 0 57 57 45.7
SCD-036 pending
SCD-039 pending
SCD-045 pending
---------------------------------------------------------------------------
Average thickness / hole(ii) 57
Weighted average grade(ii) 45.7
(ii) Weighted average thickness and grade is based on only one intercept
with results of three drill holes pending. Reported drill intercept is based
on apparent rather than true thickness as there is insufficient data with
respect to the shape of the mineralization to calculate absolute true
thickness.
To view Figure 4, visit the following link: http://media3.marketwire.com/docs/NR12_17_Figure4.jpg
METALLURGICAL TESTING
A sample of in-situ Ironstone has been shipped to SGS Laboratories in the UK and sample preparation has begun, under the supervision of SRK Consulting. The sample was taken from drill hole SCD-012 and the intersection sampled was from 57.7 metres to 147.35 metres. Assays returned 89.65 metres grading 35.1% Fe.
A second Ironstone sample (SCD-048; 0 to 125.5 metres) has been shipped to Cardero Iron Ore's metallurgical testing facility in South Carolina for additional testing. This drill hole intersected 125.5 metres of ironstone (apparent thickness) and no assay results have been received to date. A composite sample of Ferricrete has been taken from drill holes SCD-049 (0-10.3m) and SCD-050 (0-16.9m), which were specifically drilled to generate a ferricrete core sample for metallurgical testing. This sample will ship to SGS Laboratories in the coming days.
IRONSTONE RIDGES
Ironstone ridges are composed of two potential ore-types. Higher grade thinly banded ironstones are considered to be primary Rapitan-type ironstones although an epigenetic origin cannot be entirely ruled out. Associated diamictites, sediments of probable glacial origin, are thought to be epigenetic and partially replaced by haematite.
The grade of ironstone intersections returned to date is partially dependent on the relative proportions and thicknesses of two ironstone facies in each drill intersection. Drilling to date indicates a trend towards higher proportions of banded ironstones in the north, which may explain the higher grade intersected in drill hole SCD-009. Structural complexity is also important as it appears to upgrade iron content. The drill program has been targeting structurally complex areas to the north and assay results are anticipated in the coming weeks.
PERIPHERAL FERRICRETES
Detrital iron deposits are found where weathering has eroded bedded iron deposits and deposited ironstone fragments in natural traps formed by topography. Some deposits are loose gravels while others are naturally cemented (hematite conglomerate) and both types are found peripheral to the Sheini Hills ironstone ridges.
When rock units break down under the weathering process they are often affected by circulating groundwater under appropriate conditions typically form hard indurated zones such as ferricrete and laterite. At Sheini, drilling to date indicates that the ferricrete layer is averaging approximately 10 metres in thickness from surface.
The quality of the iron ore in these deposits depends on the grade and quality of the iron particles making up the clasts in the conglomerate. At Sheini, the ferricrete tends to be composed primarily of the higher-grade, banded-type ironstone, rather than the lower-grade diamictite, which is easily broken down by weathering processes.
QUALIFIED PERSON
EurGeol Keith Henderson, PGeo, Cardero's Executive Vice President and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Henderson is not independent of the Company, as he is an officer and shareholder.
QA/QC
The work program at Sheini is supervised by Christopher White (Cardero Resource Corp.) and Dr. Karel Maly (Aurum Exploration Limited), who together 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 Laboratories, Kumasi, Ghana, for sample preparation, and onward to OMAC Laboratories (an ALS Group company), Ireland, for analysis. OMAC'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 was further assured by the use of international and in-house standards. Blind certified reference material was inserted at regular intervals into the sample sequence in order to independently assess analytical accuracy.
ABOUT CARDERO RESOURCE CORP.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE MKT (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing for and completion of a resource estimate for a portion of the Sheini deposit, the ultimate nature and required expenditures of the work programs under the prospecting licenses; business and financing plans and business trends, are forward-looking statements. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
NR12-17
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
Direct Tel: 604 638-3287
Cardero Resource Corp.
General Contact
Toll Free: 1-888-770-7488 or 604 408-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero Receives 2012 Exploration Permit; Initiates Extensive Feasibility-Level Drill Program
Cardero (AMEX:CDY)
Intraday Stock Chart
Today : Monday 23 July 2012
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(NYSE MKT:CDY)(FRANKFURT:CR5) announces approval of its 2012 Notice of Work ("NoW") and initiation of the 2012 drill program at the Company's flagship Carbon Creek Metallurgical Coal deposit.
"In recent months, Cardero has announced a number of very key project milestones, including port allocation at Ridley Terminal, employment of Angus Christie, an experienced Chief Operating Officer, and issuance of key licenses surrounding the core freehold portion of the deposit," stated Michael Hunter, Cardero's President & CEO. "We are currently mid-way through our Prefeasibility Study, which will bring us to a series of go-forward mine and transport decisions. The drill permit announced today is the last essential milestone allowing Cardero to complete a Full Feasibility Study and submit a Mine Permit application in 2013."
Prefeasibility Study Update
Current work at Carbon Creek is focused on Q3-completion of a NI43-101 Technical Report Prefeasibility Study ("PFS"), which will provide significant detail on key mine-development considerations, including a new resource estimate, mine design, product specification, production schedule, processing plant design, site infrastructure, transportation options and a detailed financial assessment. The study aims to provide go-forward decisions, which will be fully assessed in the follow-up Feasibility Study.
Key aspects of the PFS work are summarized below:
-- Resource Calculation - completion of new geological model and resource
calculation, including new drill data from the 2011 drill program.
-- Mine Design - optionality with respect to various potential mining
methods, seam selection for mining, mine design, and mine production
scheduling.
-- Coal Qualities & Product Specification - the 2011 drill program included
bulk sampling (large diameter core drilling) of 11 coal seams. This work
will provide a good indication of potential products and marketability
for PFS-level assessment. The recent approval of coal license
application 414152 (see News Release NR12-14 June 19th, 2012) will allow
the remaining coal seams to be drilled during the 2012 program, with
final product specification feeding into the full Feasibility Study
("FS").
-- Processing Plant - the Company is assessing several options for coal
processing plant design and aims to reach a go-forward decision for the
PFS report.
-- Surface Facilities - preliminary designs for all surface facilities,
coal handling systems, and on-site power.
-- Transportation Study - the company is currently assessing two
transportation options to take clean coal from the mine site to the rail
head.
-- Environmental Assessment - environmental work is ongoing at site and the
PFS will include important information about potential impacts,
mitigation and reclamation planning as well as an update on baseline
data collection.
-- Economic Assessment - the PFS include a new and more detailed discounted
cash flow model and indicative mine project valuation.
2012 Field Program
The 2012 drill program is the last major drill program prior to completion of the Feasibility Study ("FS") in 2013. The program currently includes 5,600 metres of diamond drilling, 3,335 metres of rotary drilling and a significant large-diameter drill program. The objectives of the program are summarized below:
-- Infill Drilling; New License - the licenses issued recently on approval
of the 414152 application will now require infill drilling. This program
is aimed at upgrading resource classification across the remainder of
the deposit.
-- Infill Drilling; Initial Production - the current PFS work has
identified areas where underground and surface production could
commence, based on mineability and prioritization of highest quality
seams. The 2012 program will ensure these areas are mine-ready.
-- Resource Expansion - targeted drilling to expand areas already defined
as potentially mineable and included in the Prefeasibility Study. These
potentially additional resources will be incorporated into the 2013
Feasibility Study.
-- Engineering Studies - feasibility-level engineering studies, including
mine geotechnical analysis and hydrogeological work will be completed in
2012.
Qualified Person
EurGeol Keith Henderson, PGeo, Cardero's Executive Vice President and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Henderson is not independent of the Company, as he is an officer and shareholder.
About Carbon Creek
The Carbon Creek Metallurgical Coal Deposit is the Company's flagship asset. Carbon Creek is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The project has a current (October 1, 2011) resource estimate of 166.7 million tonnes of measured and indicated, with an additional 167.1 million tonnes of inferred, ASTM Coal Rank mvB coal. Having completed acquisition of the project in June 2011, the Company released results of an independent PEA, including an updated resource estimate) in December 2011, which estimates a post-tax, undiscounted cash flow of $3.1 billion (on a 75% basis). The PEA contemplates production of 2.9 million tonnes of saleable metallurgical coal products per annum (NR11-20, December 12, 2011).
The Company cautions that the PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the current (as at October 1, 2011) Carbon Creek estimated resource model, which consists of material in both the measured/indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-MKT (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for any production from the Sheini or Carbon Creek deposits, the potential for a production decision to be made at Carbon Creek or Sheini, the potential commencement of any development of a mine at the Carbon Creek or Sheini deposits following a production decision, the potential receipt of a permit to establish and operate a mine at Carbon Creek, the completion of a NI 43-101 report and the calculation of an initial resource at Sheini, the completion of a pre-feasibility and feasibility study for Carbon Creek, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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 Carbon Creek products to meet required specifications for metallurgical coal, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek or Sheini, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek or Sheini, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
NR12-16
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
(604) 408-7488
Cardero Resource Corp.
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero Announces Coal Licences for Carbon Creek Metallurgical Coal Deposit
Date : 06/19/2012 @ 5:00PM
Source : MarketWire
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE MKT:CDY)(NYSE Amex:CDY)(FRANKFURT:CR5) announces that coal tenure application 414152, which covers a significant portion of the Carbon Creek metallurgical coal property, has been processed by the British Columbia Ministry of Energy and Mines resulting in the issuance of 4 coal licenses: 418174, 418175, 418176 & 418177. These coal licenses cover an area of 3,680 hectares that is contiguous to the 10 Crown Granted District Lots leased by the Company (2,600 Ha), which area collectively contains a NI 43-101 measured and indicated resource of 166.7 million tonnes of metallurgical grade coal.
Permits for drilling are expected in advance of the proposed resource definition drill program, scheduled to commence in July 2012. The program will complete collection of all engineering and geological information in support of a Feasibility Study. In addition to the drilling component, the program will include analysis of coal quality necessary to finalize coal product specification to ultimately secure off-take agreement(s). Environmental base line work, which is an essential component of securing a permit to operate a mine, is ongoing and will address all requirements outlined in the Company's Project Description, which was approved by the BC Environmental Assessment Office last month (NR12-11, May 9, 2012).
About Carbon Creek
The Carbon Creek deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The project has a current (October 1, 2011) resource estimate of 166.7 million tonnes of measured and indicated, with an additional 167.1 million tonnes of inferred, ASTM Coal Rank mvB coal. The Company released results of an independent PEA, including an updated resource estimate) in December 2011, which estimates a post-tax, undiscounted cash flow of $3.1 billion (on a 75% basis). The PEA contemplates production of 2.9 million tonnes of saleable metallurgical coal products per annum (NR11-20, December 12, 2011).
The Company cautions that the PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the current (as at October 1, 2011) Carbon Creek estimated resource model, which consists of material in both the measured/indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-MKT (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for any production from the Carbon Creek deposit, the potential for a production decision to be made at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, the potential receipt of a permit to establish and operate a mine at Carbon Creek, the timing of the EA process and of any issuance of a permit thereunder, the securing of any off-take agreements for Carbon Creek products, the completion of a feasibility study, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined.
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 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 Carbon Creek products to meet required specifications for metallurgical coal, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
NR12-14
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
Direct: 604 638-3287
Cardero Resource Corp.
General Contact
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Them's some pretty good numbers... and no magnetite...
Cardero Receives Positive Drill Results, Sheini Hills Iron Project, Ghana; Update on Sheini Exploration Program; Termination of Letter of Intent with TMT
Date : 06/15/2012 @ 8:00AM
Source : MarketWire
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE MKT:CDY)(NYSE Amex:CDY)(FRANKFURT:CR5) announces receipt of initial drill results from Phase I drilling at the Company's Sheini Hills Iron Project, Ghana ("Sheini").
Drillholes 1 to 7 all intersected thick iron mineralization, with individual ironstone horizons up to 53 metres in thickness. The best intersection to date is 30.2 metres grading 45.6% iron and the weighted average grade from all drillholes to date is 36.2%. Ironstone composition is haematite-dominated with a negligible magnetite component.
A total of 30 drillholes have been completed to date (Figure 1 - Location Map: http://media3.marketwire.com/docs/cdu615_F1.pdf), and results have been received for the first 7 drillholes only (Table 1, Figure 2, Section 1007170). Drilling completed to the north of this section has intersected thicker iron mineralization, with individual intersections of 125 metres thickness from surface.
From To thickness Iron Grade
Drillhole (m) (m) (m) (%)
----------------------------------------------------------------
SCD-001 0.0 4 4.0 33.0
and 25.0 59.6 34.6 39.4
SCD002 30.0 66.55 36.6 35.0
SCD003 118.0 141.75 23.8 32.5
----------------------------------------------------------------
SCD004 0.0 3.8 3.8 43.1
and 104.4 126.4 22.0 32.4
and 173.0 206.6 33.6 36.5
SCD005 54.3 84.7 30.4 29.9
SCD006 7.6 45.6 38.0 35.7
----------------------------------------------------------------
SCD007 0.0 9.9 9.9 36.2
and 117.1 147.3 30.2 45.6
----------------------------------------------------------------
Weighted average grade 36.2
Table 1: Results from Initial Sheini Drillholes
(Reported drill intercepts are not true widths. At this time,
there is insufficient data with respect to the shape of the
mineralization to calculate its true orientation in space).
EXPLORATION PROGRAM DETAILS
Phase I exploration at Sheini is targeting two main types of haematite-dominated iron deposits:
- outcropping haematite ironstones - hard-rock ironstone outcropping on
ridges; and
- surface haematite ferricretes - recent deposits, peripheral to the
ironstone ridges
Cardero is undertaking a large multi-faceted exploration program with the aim of calculating an initial resource estimate for part of the Sheini deposit. The Sheini prospecting licences comprise a total strike length of approximately 50km, measured from north to south. The current work program is outlined below:
Airborne Geophysics. A 3,500 line kilometre airborne geophysical survey has been completed and delivery of a final dataset is expected in the coming weeks. On receipt, Cardero's consulting geophysicist will complete extensive interpretation and modelling aimed at identification of any potential direct shipping ore ("DSO").
Mapping. Detailed mapping is ongoing aimed at definition of ironstone and iron grade between wide-spaced drill sections.
Diamond Drilling. Diamond drilling is focussed on in situ haematite ironstone ridges over a strike length of 9 kilometres. The ironstone ridges expose ironstones on dip slopes providing potential for very low strip ratios. The ironstones are locally folded (Figure 2: http://media3.marketwire.com/docs/cdu615_F2.pdf) providing locally very thick ironstone intersections in excess of 100m. At total phase I diamond drill program of 10,000m is planned, of which 4,500m (30 holes) has been drilled to date. Detailed drill sections are located 1,600 metres apart, with infill drill sections at 800 metres apart. On section lines, drillholes are spaced approximately 100 metres apart. The Company believes that this drill spacing should be sufficient to provide an inferred resource calculation.
Reverse Circulation Drilling. Reverse Circulation drilling is focussed on peripheral surface ferriciretes (recent haematite-cemented ironstone scree) which occur at surface on the surrounding plains and have been drilled to 19 metres thickness to date. The ferricrete drilling program is reverse circulation drilling, will be up to 7,500m and has just begun. Ferricretes are extensive in the areas peripheral to the ironstone ridges.
Geotechnical. The drill program is aimed at resource definition, rather than exploration, and the collection of detailed geotechnical and engineering data is an integral part of the program.
Metallurgical Testing. Planned metallurgical testing will look at the potential upgrade of ironstones and ferricretes to potentially saleable iron ore products. Since all mineralization is haematite and not magnetite, beneficiation will focus on crushing, grinding and gravity separation. High-intensity magnetic separation may be required for final processing.
Resource Estimate. SRK Consulting has been retained to complete an initial resource estimate. Completion is anticipated to be Q4 2012.
TERMINATION OF LETTER OF INTENT WITH TMT
The Company also announces that it has been advised by its subsidiary, Cardero Iron Ore (BVI) Ltd. (the "Vendor") that on June 14, 2012 the Vendor and T.M.T. Resources Inc. ("TMT") mutually agreed to terminate the Letter of Intent dated April 20, 2012 between the Vendor and TMT with respect to the sale by the Vendor to TMT of Cardero Iron Ore Ghana (BVI) Ltd., the parent of Cardero Ghana Ltd. which was previously disclosed in Cardero's news release of April 30, 2012.
QUALIFIED PERSON
EurGeol Keith Henderson, PGeo, Cardero's Executive Vice President and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Henderson is not independent of the Company, as he is an officer and shareholder.
QA/QC
The work program at Sheini is supervised by Christopher White (Cardero Resource Corp.) and Dr. Karel Maly (Aurum Exploration Limited), who together 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 Laboratories, Kumasi, Ghana, for sample preparation, and onward to OMAC Laboratories (an ALS Group company), Ireland, for analysis. OMAC'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 was further assured by the use of international and in-house standards. Blind certified reference material was inserted at regular intervals into the sample sequence in order to independently assess analytical accuracy.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing for and completion of a resource estimate for a portion of the Sheini deposit, the ultimate nature and required expenditures of the work programs under the prospecting licenses; business and financing plans and business trends, are forward-looking statements. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
NR12-13
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
604 638-3287
Cardero Resource Corp.
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero and Ridley Terminals Announce Long-Term Port Allocation for Carbon Creek
Date : 05/22/2012 @ 5:00PM
Source : MarketWire
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE MKT:CDY)(NYSE Amex:CDY)(FRANKFURT:CR5) and Ridley Terminals Inc. ("Ridley Terminals") announce today that they have reached agreement on terms for the shipment of metallurgical coal from Cardero's Carbon Creek deposit in British Columbia.
The agreement has a 15 year term from January 1, 2014 to December 31, 2028, with provision to extend the term by three years to December 31, 2031. Contract volume is set at 500,000 tonnes per annum ("tpa") through 2014, increasing to 900,000 tpa in 2015. The agreement is subject to Ridley Terminals receiving Federal Government approval for addition of a fourth stacker/reclaimer that will increase capacity from 24 Mtpa to 30 Mtpa. Approval is expected in 2012.
Commenting on the agreement, George Dorsey, President of Ridley Terminals stated that, "Ridley Terminals is a world-class coal export facility striving to meet the rapidly increasing capacity demands of the domestic metallurgical coal producers. We expect Cardero's Carbon Creek deposit to be an ongoing component of our long-term operating plan as we grow our capacity over the coming years."
"We are very pleased to have signed this Phase I agreement with Ridley Terminals," stated Michael Hunter, Cardero's President & CEO. "It is a key milestone in the advancement of our Carbon Creek asset and greatly reduces project risk. Having addressed the needs for the expected mine start-up, Cardero will continue to work with Ridley Terminals to secure additional port capacity which meets our full anticipated production requirements."
About Ridley Terminals
Ridley Terminals is a Canadian Federal Crown Corporation that is located in Prince Rupert, British Columbia. Ridley Terminals is the most northern deep-water port in North America and has the capacity to handle capesize vessels up to 250,000 deadweight tonnage. Current handling capacity is 12 Mtpa, which is undergoing an expansion up to 24 Mtpa. The facility is serviced by the Canadian National Railway and is well positioned to handle coals from a variety of North American origins.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for any production from the Carbon Creek deposit, the potential for a production decision to be made at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, the potential receipt of a permit to establish and operate a mine at Carbon Creek, the timing of the EA process and of any issuance of a permit thereunder, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
NR12-12
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
604 638-3287
Cardero Resource Corp.
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero's Carbon Creek Environmental Assessment Process Commences with Acceptance of Project Description
Date : 05/10/2012 @ 8:00AM
Source : MarketWire
Stock : Cardero Resource Corp. (CDY)
Quote : 0.79 0.0 (0.00%) @ 8:00AM
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) announces that the BC Environmental Assessment Office ("EAO") and the Canadian Environmental Assessment Agency ("CEAA") have both accepted the Carbon Creek Metallurgical Coal Project Description filed by Cardero Coal Ltd. and the EAO has issued a decision under Section 10 of the Environmental Assessment Act (BC) ("EAA") to proceed with an Environmental Assessment ("EA") of the Project.
The Project Description is the first formal document that an industrial proponent provides to provincial and federal agencies to officially commence the EA process. A Project Description has two important functions in the EA process, specifically: to determine the need for an EA, and the level of assessment required; and to promote efficient co-ordination among the proponent (Cardero Coal), regulatory agencies, stakeholders and First Nations.
Acceptance of the Project Description by the regulatory agencies is a critical first step in securing a permit to operate a mine and means that the Project has now entered the 'Pre-Application' phase of the EA process. The Project Description is made publicly available on the EAO's e-PIC website (http://a100.gov.bc.ca/appsdata/epic/html/deploy/epic_home.html) as the background material supporting the decision under the EAA. The EAO subsequently distributes the Project Description to government agencies, local communities, and First Nations to enable them to determine their interest in participating in Project review and to initiate discussions on the scope and nature of the EA. The next stage in the EA process is for the EAO to issue an order under Section 11 of the EAA to establish the scope, procedures, and methods of the EA.
A Project Description provides a general overview of the following information:
-- Proponent Information - Corporation and Management team
-- General Background Information - Property and Proposed Project
-- Project Overview - Mining Methods, Facilities and Infrastructure
-- Proposed Development Schedule - Timeline for Mine Development
-- Land Use setting - Environment, including all Climate and Ecosystem
components
-- Consultation and Engagement Activities - with Communities, First
Nations, Government and Society
-- Projected Economic Inputs and Benefits - Costs, Revenues and Employment
-- Potential Effects - How Project May Impact the Local and Regional
Environment
-- Permits and Approvals - Relevant Regulatory Permits, Authorizations and
Review
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for any production from the Carbon Creek deposit, the potential for a production decision to be made at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, the potential receipt of a permit to establish and operate a mine at Carbon Creek, the timing of the EA process and of any issuance of a permit thereunder, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2012 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
NR12-11
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
Direct Tel: 604 638-3287
Cardero Resource Corp.
General Contact
Toll Free: 1-888-770-7488 or 604 408-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero Announces Appointment of Angus Christie to Chief Operating Officer Position
Cardero (AMEX:CDY)
Intraday Stock Chart
Today : Wednesday 2 May 2012
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) is pleased to announce the appointment of Angus Christie as Chief Operating Officer ("COO") of the Company effective June 1, 2012. Mr. Christie is a highly respected senior executive with over 25 years international experience in coal mining operations, resource and reserve management, mine development and exploration and strategic planning.
In his career, Angus has been involved in several projects from exploration and feasibility through to mine commissioning. His operational experience has been focused on both underground and surface operations extending from deposits which are structurally complex to the more benign geological formations found at the Company's Carbon Creek asset. This includes five underground and open pit mines in South Africa and the 32 million tonne per annum Cerrejon open pit mine in Colombia where he played an integral role in improving coal recoveries, illustrating the very real operational value that Angus has brought to coal mines throughout his career.
As the COO of Cardero, Angus's immediate responsibilities will be to work with senior management and regional stakeholders to advance the Company's Carbon Creek Project from the Preliminary Economic Assessment stage through to the completion of a Feasibility Study with the objective of submitting a Mine Permit Application in 2013.
His previous experience with multi-seam, metallurgical coal deposits will be of significant benefit at Carbon Creek where the Company anticipates mining and blending several seams to ensure product optimization.
On his appointment, Mr. Christie stated, "I believe that Carbon Creek deposit is a valuable metallurgical coal asset that is proving itself to be one of the largest contiguous deposits in the Peace River region. I am looking forward to developing this unique deposit so that we can realize its significant potential."
Company President & CEO, Michael Hunter, remarked, "I believe Mr. Christie's operational experience compliments a skilled and dedicated team that is motivated to unlock the value of the Carbon Creek asset and delivering that profitability to our shareholders."
Mr. Christie most recently employed as Manager Strategy and Resources for Anglo Coal (Peace River Coal). In this capacity, Angus was part of the senior management committee responsible for the exploration program management, coal resource and reserve management, project management, growth strategy and joint venture project management.
Mr. Christie's holds a Bachelor of Science (Honours), a Master of Science and a Doctorate from the University of Natal, and a Diploma in Mining Engineering from the University of Witwatersrand, South Africa.
Mr. Christie has been granted 300,000 options exercisable at a price of CAD 1.16 for a period of two years.
About Carbon Creek
The Carbon Creek deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The project has a current (October 1, 2011) resource estimate of 166.7 million tonnes of measured and indicated, with an additional 167.1 million tonnes of inferred, ASTM Coal Rank mvB coal. The Company released results of an independent PEA, including an updated resource estimate) in December 2011, which estimates a post-tax, undiscounted cash flow of $3.1 billion (on a 75% basis). The PEA contemplates production of 2.9 million tonnes of saleable metallurgical coal products per annum (see NR11-20, December 12, 2011).
The Company cautions that the PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the current (as at October 1, 2011) Carbon Creek estimated resource model, which consists of material in both the measured/indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
NR12-10
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
604 638-3287
Cardero Resource Corp.
General Contact
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero Subsidiary Enters Into Letter of Intent on Sheini Hills Project
Date : 04/30/2012 @ 7:00AM
Source : MarketWire Canada
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE
Amex:CDY)(FRANKFURT:CR5) announces that it has been advised by its subsidiary,
Cardero Iron Ore (BVI) Ltd. (the "Vendor"), that it has entered into a Letter of
Intent dated April 20, 2012 with T.M.T. Resources Inc. ("TMT"), a company listed
on the NEX board of the TSX Venture Exchange, with respect to the acquisition
(the "Acquisition") by TMT from the Vendor of all of the issued and outstanding
shares of its subsidiary, Cardero Iron Ore Ghana (BVI) Ltd. ("Acquireco") and an
outstanding shareholder's loan payable by Acquireco to the Vendor. Acquireco's
wholly-owned subsidiary, Cardero Ghana Ltd. ("Cardero Ghana") is party to
certain joint ventures with Emmaland Resources Limited ("Emmaland") on the
Sheini Hills Iron Project, located in the Zabzugu-Tatale District in the
Northern Region of the Republic of Ghana (the "Sheini Hills Project").
In consideration for the acquisition of Acquireco and the shareholder's loan, on
closing TMT must issue 30,000,000 common shares to the Vendor, and make a cash
payment to the Vendor of CAD 10,000,000. TMT is also required make an additional
cash payment to the Vendor equal to the expenditures incurred and paid for by
Cardero Ghana under the current work program underway on the Sheini Hills
Project. Following closing, TMT will be required to make the remaining payments
under the joint ventures, as well as completing the required expenditures under
the prospecting licenses comprised in the Sheini Hills Project. For details on
these payments and expenditures, see news release NR12-03, January 23, 2012.
On closing of the Acquisition, the Board of Directors and management of TMT will
be reconstituted, and it is anticipated that the reconstituted TMT board and
management will include a number of the current directors and officers of the
Company. Further details will be released as they become available.
Completion of the Acquisition is subject to a number of conditions, including
settlement and execution of formal documentation, the completion by TMT of a
non-brokered private placement to raise not less than CAD 18,600,000, the
acceptance for filing by the TSX Venture Exchange ("TSXV") of the Acquisition on
behalf of TMT and, if required by the TSXV, approval by the disinterested
shareholders of TMT. The transaction cannot close until the required approvals
are obtained and conditions met. There can be no assurance that the Acquisition
will be completed as proposed or at all.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock
Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking
information (collectively, "forward-looking statements") within the meaning of
applicable Canadian and US securities legislation. All statements regarding the
anticipated content, commencement and cost of exploration programs at Sheini,
anticipated exploration program results, the discovery and delineation of
mineral deposits/resources/reserves, the completion of the acquisition of
Cardero Iron Ore Ghana (BVI) Ltd. by TMT, the completion of any financing by
TMT, business and financing plans and business trends, are forward-looking
statements. 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 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 inability of TMT to obtain the acceptance for
filing of the Acquisition by the TSXV or, if required, the shareholders of TMT,
the inability of TMT to complete the required financing or to meet any of the
other conditions to the closing of the Acquisition, variations in the nature,
quality and quantity of any mineral deposits that may be located, variations in
the market for, and pricing of, any mineral products, the Company's inability to
obtain any necessary permits, consents or authorizations required for its
activities, the Company's inability to produce minerals from its properties
successfully or profitably, to continue its projected growth, to raise the
necessary capital or to be fully able to implement its business strategies, and
other risks and uncertainties disclosed in the Company's most recent Annual
Information Form filed with certain securities commissions in Canada and the
Company's annual report on Form 40-F filed with the United States Securities and
Exchange Commission (the "SEC"), and other information released by the Company
and filed with the appropriate regulatory agencies. All of the Company's
Canadian public disclosure filings may be accessed via www.sedar.com and its
United States public disclosure filings may be accessed 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.
Move Over, Shania Twain: Meet Canada's Surprising New Superstar
Christopher Barker
March 11, 2012
William Shatner still has swagger, and Neil Young still rocks like he is young. The legend of Gretzky is timeless, and Shania's catchy ditties still echo across the airwaves. But Canada has a new superstar, even if the world has failed to take notice.
With a hat-tip to Canadian game-show host Alex Trebek, let's start with the answer and end with the question. This hot commodity, which major producers agree is in the early stages of a long-term global supercycle, has drawn more consolidation activity in recent years than any other resource in Canada's rich mineral inventory. If you answered "What is metallurgical coal?" then you are today's champion.
In pop culture, we identify stardom by the throngs of adoring fans. Within the financial realm, however, superstars can emerge even before the public takes notice. Using strategic transactions as a gauge of popularity among the most discerning fans of metallurgical coal (the world's major producers), the Peace River Coalfield of British Columbia may be Canada's most adored mineralized geological trend.
A focused frenzy of determined star-seekers
Swiss miner XSTRATA (OTC: XSRAF.PK), the behemoth that is poised to merge with Glencore International to create a $90 billion gargantuan, this week announced its third asset purchase in the Peace River Coalfield in less than 12 months. Acquiring the Sukunka met coal deposit from Talisman Energy (NYSE: TLM ) for $500 million in cash, XSTRATA continues to expand the strategic footprint of an attractive, contiguous land package within this clearly coveted region. Far larger than the preceding acquisitions of First Coal (for $153 million) and Cline Mining's Lossan deposit (for $40 million), this latest move underscores a resiliently bullish long-term outlook for global met coal demand even as a near-term dip in demand has seen equity valuations crumbling and select miners reducing their output. As with XSTRATA, I believe the current environment is ideal for those looking to initiate exposure to the long-term bullish outlook for this unsung star of the commodity complex.
XSTRATA is not the only force for consolidation in the region. The coal-mining subsidiary of Anglo American shelled out $166 million last October to consolidate its interest in the nearby Trend mine and related exploration targets. Although shareholders of Walter Energy (NYSE: WLT ) have been among the hardest-hit by the prevailing weakness in the sector, Walter's $3.24 billion acquisition of Western Coal back in 2010 featured an expansive property portfolio in the Peace River Coalfield running roughly parallel to that of XSTRATA. Fools will recall that Teck Resources (NYSE: TCK ) suffered some serious pain of its own following its $14.1 billion acquisition of Fording Canadian Coal Trust back in 2008, but Teck has since re-emerged. Meanwhile, back in the Peace River Coalfield, Teck is weighing a potential restart of operations at the historical Quintette mine, with a feasibility study expected during the second quarter.
Although the property is across the provincial border into Alberta from B.C.'s Peace River Coalfield, last year's $1 billion acquisition of Grande Cache Coal also belongs in this discussion as further evidence of strategic global interest in Canada's quality coking coal. As I stated at the time: "Even met coal deposits of relatively modest scale have leapt onto the radar screens of determined consolidators in a very big way. This suggests to me that the recent collapse in met coal share valuations is likely to prove a short-lived anomaly within a still-anticipated global supercycle for the strategic resource." Even as near-term softness in the met-coal market persists, I stand behind that long-term perspective.
A future star is born
Looking over a map of the Peace River Coalfield, and the key known deposits on the trend, you can't help fixing your gaze upon one glaring feature. In the wake of all this concerted consolidation activity, the Carbon Creek deposit -- majority-owned by junior developer Cardero Resource (AMEX: CDY ) -- stands out like an undiscovered star that was born for the big stage. Cardero completed its acquisition of private company Coalhunter in 2011 and signaled the company's strategic focus upon this high-quality coal asset by inserting Coalhunter's founder Michael Hunter as Cardero's CEO. Hunter also founded First Coal, the company that XSTRATA purchased last year for $153 million.
I sat down with Cardero CEO Michael Hunter in Toronto this week at the Prospectors and Developers Association of Canada's mining conference, and I look forward to sharing excerpts from that discussion next week. To catch that article and all my forthcoming coverage of Canada's met-coal bonanza, please bookmark my article list, or follow me on Twitter. In the meantime, I wish to offer my readers a brief glimpse of the relative valuation between XSTRATA's latest purchase and Cardero's 75% stake the Carbon Creek deposit.
XSTRATA's $500 million purchase price for the Talisman's Sukunka deposit equates to $2.12 for each of the asset's 236 million tons in measured and indicated resource. Cardero Resource carries a current market capitalization of just over $120 million, or merely 16% of the project's attributable, post-tax net present value (8% discount rate) of $752 million, as calculated by a preliminary economic assessment last December. Delivered as it was into an equity market that appeared disjointed from market fundamentals, I argued that Cardero's meaningfully positive assessment of Carbon Creek fell entirely upon deaf ears. Applying XSTRATA's latest per-ton purchase price to Cardero's attributable share of measured and indicated resources at Carbon Creek would yield a comparable valuation of $265 million. In subsequent discussions, I will place that clear valuation disconnect into the context of Cardero's array of other assets featuring cash, equity investments, and other compelling projects such as the company's district-scale iron project in Ghana.
Accordingly, even though my bullish CAPScall on Cardero Resource remains deep in the red amid this prolonged bout of weakness for met coal stocks, I remain steadfast in my expectation that the market will ultimately correct for the resulting valuation disconnect in these downtrodden shares.
CDY
Tell me about it! CDY
Awesome recovery today!
:)
Sure makes me wish I had picked up some more,
while it was under $1.10!!!
does anyone else show a halt?
scottrade does...but they also show a halt on AA*
and that seems to be trading!
Cardero Completes Large Diameter Drill Program at Carbon Creek Metallurgical Coal Deposit; Commences Detailed Coal Quality Analysis
Date : 02/29/2012 @ 8:00AM
Source : MarketWire
Stock : Cardero Resource Corp. (CDY)
Quote : 1.37 0.0 (0.00%) @ 8:00AM
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) announces the completion of its bulk sample drill program on nine of the metallurgical coal seams included within the current resource estimate at its Carbon Creek project. Completion of the coal quality analysis of the samples from these seams will be a key milestone for the project, allowing Cardero to pursue potential off-take agreements with metallurgical coal end-users.
"We are very pleased to have completed this important part of the bulk sampling program on schedule, allowing us to move towards timely off-take negotiations in Q2," stated Michael Hunter, President and CEO. "Off-take agreements are one of several financing options potentially available to Cardero in 2013 and they could help limit share dilution as we move towards feasibility and a potential production decision."
Bulk Sampling and Coal Analysis
Bulk samples have been acquired through large diameter drilling, which provides six inch diameter core samples of coal seams. Samples from individual seams each weigh approximately 300 kilograms and, when analysed, will provide coal quality data representative of that anticipated from run-of-mine ("ROM") coal from such seams. This type of coal quality analysis is the benchmark used by potential customers to negotiate future off-take arrangements. Moving towards completion of a feasibility study in early 2013, it is essential to complete this coal quality analysis early, thereby allowing sufficient time to carry out negotiations with potential end-users.
Processing Plant Advanced Engineering
Cardero has also provided a bulk sample from the drill program to the planned processing plant manufacturer for the Carbon Creek project to ensure that the design of the coal washing systems is properly matched to the Carbon Creek coal. The advanced engineering and testing process is being initiated early to ensure timely delivery of the processing plant should a decision be made to move forward with production. Ground investigation drilling was completed at the proposed processing plant site in Q4 2011 and a total of 17 shallow geotechnical drillholes were completed, the results from which are currently being assessed.
Updated NI 43-101 Technical Report
The current NI 43-101 Preliminary Economic Assessment ("PEA") technical report was filed on SEDAR and published on the Company's website in January 2012 and is available for download. An updated NI 43-101 report is currently scheduled to be published in Q3 2012. The updated technical report will include the results of the 2011/12 drill program (a total of 68 deep drillholes, 15,670 metres), results of all geotechnical, geophysical and hydrogeological investigations, and all coal quality analysis for samples from the slim core and large diameter drill programs.
About Carbon Creek
The Carbon Creek deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The project has a current (October 1, 2011) resource estimate of 166.7 million tonnes of measured and indicated, with an additional 167.1 million tonnes of inferred, ASTM Coal Rank mvB coal. The Company released results of an independent PEA, including an updated resource estimate) in December 2011, which estimates a post-tax, undiscounted cash flow of $3.1 billion (on a 75% basis). The PEA contemplates production of 2.9 million tonnes of saleable metallurgical coal products per annum (see NR11-20, December 12, 2011).
The Company cautions that the PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the current (as at October 1, 2011) Carbon Creek estimated resource model, which consists of material in both the measured/indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized.
Peru Iron Sands Project
After spending a significant period of time and considerable effort in trying to secure a joint venture partner for the Pampa el Toro Iron Sand project in Peru without success, the Company has determined to focus its full attention on the Carbon Creek Metallurgical Coal Project in British Columbia and the Sheini Hills Iron Ore Project in Ghana and has therefore terminated its option to acquire the subject iron sand concessions from Minera Ataspascas SA and relinquished the remaining 100% owned concessions to the Peruvian government.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
NR12-06
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing for the completion of a feasibility study at Carbon Creek, the potential for any production from the Carbon Creek deposit, the potential for a production decision to be made at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, the preliminary economic analysis of a production scenario at Carbon Creek and the results thereof, the entry into negotiation for and successful conclusion of any off-take agreements with third party purchasers in 2013 or at all, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability or cost of the labor force required to operate a mine at Carbon Creek, significant increases in the cost of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2011 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
Contacts:
Cardero Resource Corp.
Nancy Curry
Corporate Communications
604 638-3287
Cardero Resource Corp.
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Cardero Receives 43-101 Resource Estimates for Longnose and TiTac Ferro-Titanium Deposits, Minnesota, USA
Date : 01/31/2012 @ 8:00AM
Source : MarketWire
Stock : Cardero Resource Corp. (CDY)
Quote : 1.35 0.0 (0.00%) @ 8:00AM
Cardero Resource Corp. (TSX VENTURE:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) ("Cardero" or the "Company") is pleased to announce that it has received mineral resource estimates for the Longnose and Titac South iron-titanium deposits from SRK Consulting (Canada) Inc. Details from the two resource estimates are outlined below.
Cardero Iron Ore Company Ltd. ("Cardero Iron"), a wholly owned subsidiary of Cardero, views the Longnose and TiTac projects as being prime candidates for producing value added commodities of enriched titania feedstock and pig iron. Established titania resource quality is decreasing and Cardero Iron is focused on the next level of opportunity in titanium and iron bearing ore deposits around the world. Being focused means that Cardero Iron has developed its own in-house capabilities to move these projects forward, including a metallurgical laboratory to aid in flow sheet development and design. Cardero Iron is capable of bringing projects such as Longnose and Titac through the basic engineering stage and supervising the detailed engineering through demonstration or commercial plant start-up.
In 2011, Cardero Iron built its own state-of-the-art research and development facility in South Carolina. The lab features the latest laboratory- and pilot-scale equipment for mineral processing and smelting/reduction. The lab was specifically designed for processing iron ores, titanium ores, rare earths and other nonferrous ores. It is being tailored to suit Cardero Iron's projects - including Longnose and TiTac. The equipment was carefully selected so that it encompasses almost every commercial beneficiation unit operation available throughout the world. In the laboratory, titanium bearing ore can be crushed and ground and concentrated by rejecting gangue constituents by their differences in gravity/density, magnetic susceptibility, surface chemical properties (froth flotation) and electrical conductivity differences (high tension/electrostatic). By establishing its own laboratory, Cardero Iron has facilitated rapid flowsheet development in-house and reduced delays associated with waiting for an outside laboratory to schedule and complete its work.
LONGNOSE DEPOSIT
The Longnose deposit is an ultramafic intrusion significantly enriched in ilmenite and magnetite. The deposit is flat lying and provides a geometry that should be amicable to open pit mining. The Longnose deposit is approximately 700 m long in the north-south direction, 600 m wide in the east-west direction and 150 m thick.
The Longnose oxide-bearing ultramafic intrusion ("OUI") is geologically interpreted to be late-stage intrusion that cuts early Duluth Complex intrusives, and is associated with magmatism generated by the 1.1 billion year old Midcontinent Rift system. The Longnose intrusion is stratigraphically simple, consisting of a core of olivine-rich dunitic and peridotitic rocks containing disseminated titanium-iron oxide mineralization with horizons of massive and semi-massive oxide throughout, that is enveloped by pyroxenitic rocks, which contain much less mineralization. Disseminated titanium-iron oxide mineralization is continuous, and the horizons of massive and semi-massive oxide may link up to form layers that dip moderately coincident with dip of the overall intrusion.
According to SRK Consulting (Canada) Inc. ("SRK"), the exploration data for the Longnose project is robust and viable to support the Mineral Resource defined. The data has been well validated and the analyses have been found to be repeatable. Overall, correlation of the mineralization between drill holes is reasonable and it is expected that the Mineral Resource accurately represents the titanium oxide (TiO2) and iron oxide (Fe2O3) mineralization. Based on the TiO2 estimates, the mineralogy of the deposit and the Davis Tube test results, the amount of ilmenite has been estimated.
Longnose Resource Estimate & Assumptions
SRK utilized Gemcom's Surpac® version 6.2 and several other software packages to complete the Longnose Mineral Resource estimation. A comprehensive and validated drill hole database was utilized to complete the analysis. The database includes twenty-seven drill holes; however, only twenty-four were utilized in the estimation process due to issues with resampling of some historic drill holes. All 2010-11 drill hole data included multi-shot downhole surveys; however, historic holes did not have downhole surveys. The estimation process utilized 1681 samples out of the database's 1956 samples. A total of 855 specific gravity measurements were utilized to estimate bulk densities. Estimation of metal grades utilized regularized 2 m composites.
Two geological domains were defined for the estimation process. The domains were defined by the presence of peridotite or pyroxenite oxide bearing rocks. The peridotite domain has higher olivine content and encompasses higher TiO2 grades near the core of the deposit. The pyroxenite domain includes higher pyroxene content, has lower TiO2 grades and is generally found at the periphery of the deposit. The geological domains are generalized, with some instances of other rock types within each domain.
The estimations were made into a three-dimensional block model with 20 m by 20 m by 10 m block size, with sub-blocking to 5 m by 5 m by 2.5m. Estimated parameters included specific gravity, TiO2 and Fe2O3 grades. Metal grade interpolation was completed through three passes using increasingly larger search ellipses and lower restrictions on sample inclusion in each pass. Search ellipses were generally flat "pancakes" with the shortest direction of continuity sub-vertically and the longest in the northwest-southeast direction. The search ellipse orientations, which dip 20 degrees to the east, were based upon variography completed on the 2 m composite data. Ordinary kriging ("OK") was used to estimate TiO2 and Fe2O3, while inverse distance squared ("ID2") was used to estimate the specific gravity data. Mineral resources were classified in accordance with definitions provided by the Canadian Institute of Mining ("CIM") as stipulated in NI 43-101.
In order to quantify the Mineral Resources requirement of "reasonable prospects of economic extraction", the block model was subjected to conceptual mining limits using an open pit optimization program. The process uses reasonable mining and processing parameters to define a conceptual pit within which the material with reasonable economic prospects should be contained. For the Longnose project optimization runs, it was assumed that all TiO2 is contained in the mineral ilmenite. Fe2O3 values were modified to reflect the amount of iron taken up by ilmenite as well as the component estimated to be within silicates. However, more detailed testing is required in order to properly quantify the magnetite content of the resource, so iron was not given any value in the resource pit optimization limits nor has the magnetite content been estimated. Historic metallurgical data indicates that a very high percentage of the TiO2 is contained within ilmenite, with a relatively small component in titaniferous magnetite and silicates.
Table 1: Mineral Resource Statement(i), Longnose Project, Minnesota, USA
(effective date, January 19, 2012)
---------------------------------------------------------------------------
Estimated Grade
-----------------------
Adjusted Fe2O3
Category Estimated Quantity TiO2 (iii)
(Open Pit(ii)) Mt % %
---------------------------------------------------------------------------
Indicated 58.1 16.6 18.8
---------------------------------------------------------------------------
Inferred 65.3 16.4 19.4
---------------------------------------------------------------------------
(i) Mineral resources are reported in relation to a conceptual pit shell.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. All figures are rounded to reflect
the relative accuracy of the estimate. All composites have been
capped where appropriate.
(ii) Open pit (near surface) Mineral Resources are reported at a cut-off
grade of 8% TiO2. Cut-off grades are based on a price of US$170 per
tonne of ilmenite back calculated to TiO2 and recoveries of 70
percent, without considering revenues from other metals including
iron.
(iii) Reported Fe2O3 has been lowered to reflect the amount of Fe estimated
contained within ilmenite and silicates, based upon Davis Tube
testing. At this time, accurately quantifying the amount of magnetite
contained within this estimate is not possible.
---------------------------------------------------------------------------
The Mineral Resource has been quantified in terms of TiO2 and Fe2O3, the analytical components captured for assays of titanium and iron. The Fe2O3 values have been reduced to reflect Fe found within silicates and within the ilmenite associated with the TiO2, however accurately quantifying magnetite is not possible at this time as further mineralogical work will be needed. In any potential mining scenario, the Longnose project would produce ilmenite (FeTiO3) and may produce titaniferous magnetite (TiFe2O4) and magnetite (Fe3O4) as a by-product. Using Davis Tube test results, historic mineralogy and metallurgy reports, reasonable assumptions regarding mineralogy of the deposit, estimates of the quantity of ilmenite was made. The contained ilmenite in the Mineral Resource is summarized in Table 2.
Table 2: Summary of Longnose Project ilmenite content within the Mineral
Resource
---------------------------------------------------------------------------
Ilmenite Grade Contained Ilmenite
(FeTiO3)
Quantity ---------------------------------
Category Mt % Mt.
---------------------------------------------------------------------------
Indicated 58.1 31.5 18.30
---------------------------------------------------------------------------
Inferred 65.3 31.2 20.40
---------------------------------------------------------------------------
Longnose Metallurgy
Historic tests have indicated that a viable ilmenite concentrate could be created from processing of Longnose material, although higher than ideal magnesium levels may reduce the product price somewhat. The ilmenite could potentially be sold as a concentrate to an existing ilmenite processing plant, as the deposit is amicable to shipping due to its proximity to rail and a short haul to bulk ports on the western shore of Lake Superior. As well, local added-value beneficiation is under consideration by Cardero Iron. This goal of further beneficiation would be to produce a high TiO2 synthetic rutile slag amicable for processing into the paint pigments; however, such processing facilities are capital intensive and further work is required to determine if such a process is viable.
Based upon the significant amount of historical research completed on the Longnose project, a relatively simple processing flow sheet for ilmenite concentrate, a recent increase in demand for ilmenite and the projects close proximity to other bulk mines and inexpensive shipping routes, SRK believes that the Longnose project meets the criteria for having reasonable prospects of economic extraction.
TITAC DEPOSIT
Exploration of the Titac property, historically known as Section 34, has been limited, though several exploratory bore holes and geophysical surveys have been completed. Six holes were drilled historically (by United States Steel Corp ("US Steel")), and Cardero Iron completed 30 holes in 2010 and 2 holes in 2011. A ground magnetic survey was conducted in the mid-1960s by US Steel and a small amount of metallurgical testwork was completed by US Steel in 1971.
The geological setting for the TiTac OUIs is as outlined above for Longnose. The Titac OUls contain disseminated, semi-massive, and massive titanium-iron oxide mineralization, dominantly ilmenite (TiFeO3) and magnetite and titaniferous magnetite (Fe3O4, Fe2TiO4). The Titac property contains at least two mineralized OUIs (Titac North and Titac South). Titac North is at least 450 m thick (open at depth) and has a vertical pipe-like geometry. Titac South is at least 490 m thick, and also has a pipe-like geometry.
Exploration at Titac by Cardero Iron began in 2010. Reinterpretation of the ground magnetic survey conducted by US Steel confirmed the presence of multiple titaniferous-iron oxide-bearing intrusions at the Titac property, including two large intrusions referred to as Titac North and Titac South. No bedrock is exposed on the property with the result that bedrock mapping has not been undertaken.
Drilling at the Titac property is complex because of the stratigraphy of the Titac intrusions. During 2010 and 2011, a total of 11,034.4 m were completed for 32 drill-holes, 8 (2685.3 m) of which were drilled at Titac North and 24 (8349.1 m) at Titac South. The drilling confirmed titanium-iron-oxide mineralization at the Titac property and determined that it contains at least two intrusions with large zones of titanium-iron-oxide mineralization (Titac North and Titac South).
According to SRK, Cardero Iron has utilized a thorough and robust procedure for sampling, sample preparation, analysis and security. Procedures for core handling, logging, sampling, and sample shipping were well thought out and well implemented. Analysis was completed by ALS, one of the largest commercial laboratories in the world. A robust program of quality assurance and quality control samples was implemented and met or exceeded industry standard procedures. Sample security and chain of custody documentation was maintained throughout the process and was thoroughly reviewed by SRK. Cardero Iron utilized an onsite database which validated the data entry process as it was being completed and reduced clerical errors. In addition, the Company's head office checked the data upon import into their main exploration database in order to minimize data errors. SRK verified 100% of the assay database by downloading these records directly from the commercial laboratory and checking them against the Mineral Resource database. Cardero Iron completed QA/QC sampling (blanks, standards, duplicates) totalling 1075 samples, equal to 22% of the total samples. SRK has reviewed the QA/QC sample insertion rate and results and found that they indicate that the analytical data should be reliable. However, analytical standards selection and certain standard results should be more carefully scrutinized for future programs.
TiTac Mineral Resource Estimate & Assumptions
SRK utilized Gemcom's Gems(TM) 6.3.1 software to complete the Titac Mineral Resource estimation. A comprehensive and validated drill hole database was utilized to complete the analysis. The database includes 32 drill holes, 8 of which were drilled in Titac North and 24 of which were drilled in Titac South. Drilling in Titac North was insufficient for the delineation of mineralized domains and resource estimation. The Mineral Resource presented here only includes Titac South. The estimation process utilized 2837 samples out of the databases 3929 samples for Titac South. A total of 855 specific gravity measurements were utilized to estimate bulk densities.
Three geological domains were modelled for the estimation process. The domains were defined by peridotite or pyroxenite dominated oxide bearing ultramafic rocks. A marginal zone of mixed perdidotite, pyroxenite and country rock was also modelled.
The Titac South resources were estimated using Gems(TM) (a Gemcom software product) block modeling software in multiple passes in 10 x 10 x 10 m blocks. Grade estimates were based on 1.8 m composited samples. Capping of TiO2 and Fe2O3 assays was not applied in any of the three domains. OK was used to estimate TiO2 and Fe2O3. ID2 was used to estimate the specific gravity data. Mineral resources were classified in accordance with definitions provided by the CIM as stipulated in NI 43-101. All interpolated blocks were classified as Inferred Mineral Resource.
In order to quantify the Mineral Resources requirement of "reasonable prospects of economic extraction", the block model was subjected to conceptual mining limits using an open pit optimization program. The process uses reasonable mining and processing parameters to define a conceptual pit within which the material with reasonable economic prospects should be contained. For the Titac project optimization runs, it was assumed that all TiO2 is contained in the mineral ilmenite and no value was associated with the Fe2O3 material in order to avoid double counting of the value associated with iron. Historic metallurgical data indicates that a very high percentage of the TiO2 is contained within ilmenite, with a small component in titaniferous magnetite and silicates. The Mineral Resource Statement for the Titac project is presented in Table 3 below.
Table 3: Mineral Resource Statement(i), Titac Project, Minnesota, USA
(effective date, January 19, 2012)
---------------------------------------------------------------------------
Estimated Grade
-----------------------
Adjusted Fe2O3
Estimated Quantity TiO2 (iii)
Category Mt % %
---------------------------------------------------------------------------
Open Pit(ii)
---------------------------------------------------------------------------
Inferred 45.1 15.0 14.74
---------------------------------------------------------------------------
(i) Mineral resources are reported in relation to a conceptual pit shell.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. All figures are rounded to reflect
the relative accuracy of the estimate. All composites have been
capped where appropriate.
(ii) Open pit mineral resources are reported at a cut-off grade of 8% TiO2.
Cut-off grades are based on a price of US$170 per tonne of Ilmenite
back calculated to TiO2 and recoveries of 70 percent, without
considering revenues from other metals.
(iii) Reported Fe2O3 has been lowered to reflect the amount of Fe estimated
to be contained in ilmenite based on the assumption that all Ti has
been assigned to ilmenite. At this time, accurately quantifying the
amount of magnetite contained within this estimate is not possible.
As stated above, the Mineral Resource for Titac has been quantified in terms of TiO2 and Fe2O3, the analytical components captured for assays of titanium and iron. In any potential mining scenario, the Titac project would produce ilmenite (FeTiO3) and potentially titaniferous magnetite (TiFe2O4) and magnetite (Fe3O4) as a by-product. The Fe2O3 values have been reduced to reflect Fe found within the ilmenite associated with the TiO2, however accurately quantifying magnetite is not possible at this time as further mineralogical work will be needed. Based on the assumption that all Ti is found within ilmenite, the contained ilmenite in the Mineral Resource is summarized in Table 4.
Table 4: Summary of Titac Project ilmenite content within the Mineral Resource
---------------------------------------------------------------------------
Category Quantity Ilmenite Grade Contained Ilmenite
--------------------------------------
(FeTiO3)
--------------------------------------------------------
Mt % Mt.
---------------------------------------------------------------------------
Inferred 45.1 28.5 12.9
---------------------------------------------------------------------------
Titac Metallurgy
Historic metallurgical tests of the Titac material are very limited. Small scale testing indicates that a viable ilmenite concentrate could be created from processing of Titac material, although higher than ideal deleterious element values, such as magnesium, may reduce the potential ilmenite product price. The ilmenite may be sold as a concentrate to an existing ilmenite processor as the deposit is amicable to shipping due to its proximity to rail and a short haul to bulk ports on the western shore of Lake Superior. As well, local beneficiation could be considered, particularly when other nearby OUI bodies are considered for increased scale. The main hurdle to overcome with future exploitation of the Titac deposit revolves around metallurgical optimization to create the highest grade concentrate while reducing potential deleterious element contamination of the concentrate. Further economic analysis of this project is anticipated and should include resolution of the mineralogical, metallurgical and processing issues.
Based upon a relatively simple processing flow sheet for ilmenite concentrate, a recent increase in demand for ilmenite and the Titac project's close proximity to other bulk mines and inexpensive shipping routes, SRK believes that the Titac project meets the criteria for having reasonable prospects of economic extraction.
The NI 43-101 technical reports with respect to each of the Longnose and Titac properties, each dated January 27, 2012 and incorporating the foregoing Mineral Resource estimates, have been filed and are available on SEDAR or on the Company's website.
About Longnose & Titac
The Lands making up the Longnose project ("Longnose") are located in northeastern Minnesota in St. Louis County, Township 59N, Range 13W, Section 30 and is centered at: (Coordinate system: Universal Trans Mercator, Zone 15 North, North American 1983 Datum) 572200 metres East, 5268300 metres North.
Cardero Iron's wholly owned subsidiary, Cardero Iron Ore (USA) Inc. ("CIOUS"), holds an option to acquire up to an 85% interest in Longnose by incurring USD 1,850,000 in expenditures (to acquire 70%) and delivering a feasibility study (to acquire an additional 15%). Upon CIOUS earning its 70% or 85% interest, the optionor of Longnose has the option to maintain its 30% or 15% interest and enter into a joint venture with CIOUS, or to convert its working interest to either a 10% or 5% net profits interest. Advance royalties and production royalties are payable to the underlying property lessors.
The land making up the Titac project ("Titac") is located in northeastern Minnesota in St. Louis County, Township 55N, Range 14W, Section 34, and Township 54N, Range 14W, Section 3. The property is approximately centered at: (Coordinate system: Universal Trans Mercator, Zone 15 North, North American 1983 Datum) 568000 m East, 5228000 m North.
The property interests making up Titac are held by CIOUS. CIOUS holds a 100% leasehold interest in Titac under a mining lease dated July 1, 2009. The mining lease is for an initial term of 20 years, subject to extension for up to 20 additional years, and requires annual rental payments until commercial production and thereafter production royalty payments (minimum USD 200,000/year).
About Ilmenite
Ilmenite is an industrial mineral and there are risks and uncertainties associated with the ilmenite resource at both Longnose and Titac, many of which are common to industrial mineral deposits. Industrial minerals have special risks that are not typically associated with precious or base metal mines. Special concerns include mineralogy of material, deleterious elements (such as silica, calcium, magnesium and manganese), and special market factors such as market size or proprietary technology. Because of these and other issues, industrial mineral deposits carry additional risk compared to more common metal products. Historic testwork has indicated that the Longnose deposit produces concentrate with less favourable magnesium levels, which may adversely affect the potential value of the concentrate.
Qualified Person(s) and Quality Control/Quality Assurance
EurGeol Keith Henderson, P.Geo., 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 the mineral property disclosure in this news release. Mr. Henderson is not independent of the Company, as he is an employee and holds incentive stock options.
The work programs on the Company's Longnose and Titac properties are designed and are supervised by Mr. Henderson, either alone or in conjunction with independent consultants. Mr. Henderson and such consultants, as applicable, are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the various projects rigorously collect and track samples which are then 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.
Darrell Farrow, Pr.Sci.Nat., an Associate Consultant with SRK Consulting (Canada) Inc. is a member of the South African Counsel for Scientific Natural Professions and, as such is acting as the Qualified Person, as defined in NI 43-101 for certain portions of the Longnose and Titac Reports. Ms. Farrow has a BSc. and an MSc. in Geology and 28 years of relevant experience as a research geochemist for four years, as a geologist at two mining operations over a period of ten years, as a manager of an exploration laboratory for three years, and as a consulting geologist for eleven years. Both Ms. Farrow and SRK Consulting (Canada) Inc. are independent of the Company under NI 43-101.
Michael Johnson, P.Geo., of SRK Consulting (Canada) Inc. is a Professional Geoscientist (BC) and, as such is acting as the Qualified Person, as defined in NI 43-101 for certain portions of the Longnose and Titac Reports, including the January 19, 2012 resource modeling for the Longnose and Titac deposits. Mr. Johnson has a BSc. in Geological Sciences and 15 years of relevant experience as a geologist, exploration manager, mine geologist and open pit mine manager. He has extensive experience in resource estimation within many deposit types and has worked with ultramafic intrusions and related mineral deposits for more than 10 years. Both Mr. Johnson and SRK Consulting (Canada) are independent of the Company under NI 43-101.
2011 Annual Report Filed
On January 30, 2011, Cardero filed its Annual Information Form for the year ended October 31, 2011 with certain securities commissions in Canada and its Form 40F for the year ended October 31, 2011 with the US Securities and Exchange Commission. Shareholders can obtain copies of these documents, as well as the Company's audited financials for the year ended October 31, 2011 and related management discussion and analysis, on SEDAR (www.sedar.com) and on Cardero's website at www.cardero.com. Cardero will also provide hard copies of these documents, free of charge, to shareholders who request a copy directly from the Company at its head office in Vancouver, B.C.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO and President
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for any commercial production at Longnose or Titac, the potential for the production of an ilmentite concentrate or synthetic rutile from Longnose or Titac mineralization, the potential to produce the value added commodities of enriched titania feedstock and pig iron from Titac or Longnose mineralization, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2010 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
NR12-05
Contacts:
Cardero Resource Corp. - Metallurgical Coal Projects
Kareen McKinnon
Vice-President Investor Relations
604-638-1428
Cardero Resource Corp. - Iron Ore Projects
Nancy Curry
Corporate Communications
604-638-3287
Cardero Resource Corp. - General Contact
604-408-7488 or Toll Free: 1-888-770-7488
604-408-7499 (FAX)
info@cardero.com
www.cardero.com
I'm not exactly ignorant about charts... but, the recent news might also be expected to weigh in on things here a bit...
These guys have a solid history of identifying large values others are ignoring, and buying them from others just prior to the market lows, then, after polishing then up a bit while the market flounders, they turn around and complete deals for a whole lot more money than they put in... in a much stronger market.
They did that handily with a south American iron sands project a few years back... made a ton of money on it... and now have turned that cash into something massively larger in value... and appear set to do the same thing again with the new and larger value...
CDY should be interesting in 2012...
RSI overbought yes and you may expect a retracement after this run. maybe to the 125-130 area
RSI is all I'm saying...played this many times......
I definitely agree!
CDY has had a really nice run...
I can live with a small pull back.
I would not be surprised to see it pull back to $1.30 - $1.29.
I'm not a trader...
I bought this to hold.
huh? 50% increase in the stock this month. id say things are looking up
GM AF..... Watch this one...if they start picking them up like candy then it's time to load...
Cardero Grants Incentive Stock Options
PrintAlert
Cardero (AMEX:CDY)
Intraday Stock Chart
Today : Friday 27 January 2012
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) announces that, pursuant to its 2002 Incentive Stock Option Plan, it has granted incentive stock options to certain directors, officers, employees and consultants allowing them to purchase up to an aggregate of 1,500,000 common shares in the capital stock of the Company. The options are exercisable at a price of CAD 1.51 for a period of two years ending January 26, 2014.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, President & CEO
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.
NR12-04
Contacts:
Cardero Resource Corp.
Kareen McKinnon
Vice-President Investor Relations
Metallurgical Coal Projects
604 638-1428
Cardero Resource Corp.
Nancy Curry
Corporate Communications
Iron Ore Projects
604 638-3287
Cardero Resource Corp.
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
Down 5%+ on low volume...lol... want to wait before that kinda observation....
I'm really happy to see this moving in the right direction!
Every ONCE IN AWHILE, my faith in a company is rewarded!
...it's been a pretty rare occurrence lately...
:)
Best of luck to all believers!
things are looking up here... nice price movement up, strong volume, good news, etc...
the crappy micro/small cap market this past year as a whole brought down some good stocks like this one. hopefully the tides are turning
Cardero Receives Loan Repayment from Trevali Mining Corporation
Date : 01/17/2012 @ 9:00AM
Source : MarketWire
Stock : Cardero Resource Corp. (CDY)
Quote : 1.13 -0.01 (-0.88%) @ 1:45PM
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) announces it has received yesterday repayment of the USD 8 million loan originally made to Kria Resources Inc. ("Kria") (now a wholly owned subsidiary of Trevali Mining Corporation ("Trevali") on January 14th, 2011.
The Company, Kria and Trevali agreed that the loan, plus interest of USD 645,260, was to be repaid as follows: (i) Kria has paid Cardero USD 5,000,000 in cash; and (ii) the balance of USD 3,645,260 (equivalent to CAD 3,734,569) has been satisfied by Trevali issuing to Cardero 4,149,521 units ("Units"), with each Unit being comprised of one common share of Trevali ("Common Share") and one-half of one transferrable common share purchase warrant (a "Warrant"), at a deemed price of CAD 0.90 per Unit. Each whole Warrant will entitle the holder thereof to purchase one Common Share ("Warrant Share") at a price of CAD 1.10 per share until January 16, 2014.
The Common Shares, Warrants and any Warrant Shares issued are subject to a hold period in Canada expiring on May 17, 2012.
Prior to the transactions disclosed herein, Cardero held 11,159,432 common shares of Trevali, representing approximately 7.737% of the issued common shares, plus warrants to acquire an additional 3,253,572 common shares which, if exercised would have resulted in Cardero holding approximately 9.77% of the common shares of Trevali. As a result of the transactions disclosed above, Cardero now holds an aggregate of 15,308,953 common shares of Trevali, representing approximately 10.318% of the issued and outstanding common shares of Trevali, plus warrants to acquire an additional 5,328,332 common shares. Assuming the exercise of these warrants, Cardero would then hold 20,637,285, or approximately 13.42%, of the then issued common shares of Trevali (assuming no other warrant or option exercises). Cardero is not acting jointly or in concert with any other persons or companies in connection with such acquisition or the securities of Trevali. Cardero acquired the securities of Trevali for investment purposes only, and not for the purpose of influencing control or direction over Trevali. Cardero will, however, review its holdings in Trevali from time to time, and may increase or decrease its position as future circumstances dictate.
A copy of the Early Warning Report filed under Part 3 of National Instrument 62-103 with respect to the foregoing acquisition is available upon request to Lawrence W. Talbot, the Vice-President & General Counsel of Cardero, at 604-408-7488.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO
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.
NR12-02
Contacts:
Cardero Resource Corp.
Kareen McKinnon
Vice-President Investor Relations
Metallurgical Coal Projects
Direct: 604 638-1428
Cardero Resource Corp.
Nancy Curry
Corporate Communications
Iron Ore Projects
Direct: 604 638-3287
Cardero Resource Corp.
General Contact
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
info@cardero.com
www.cardero.com
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CDY seems like it's just getting started buddy
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Cardero Receives Final Preliminary Economic Assessment ("PEA") for Carbon Creek Metallurgical Coal Deposit, BC
Date : 01/05/2012 @ 7:25PM
Source : MarketWire
Stock : Cardero Resource Corp. (CDY)
Quote : 1.06 -0.01 (-0.93%) @ 4:18PM
Cardero Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE Amex:CDY)(FRANKFURT:CR5) announces it has received the final Preliminary Economic Assessment ("PEA") technical report from Norwest Corporation ("Norwest") relating to the Carbon Creek Metallurgical Coal deposit ("Carbon Creek"). The report has been uploaded to SEDAR (www.sedar.com) and is available for download from the Company's website (www.cardero.com).
Cardero, through Cardero Coal Ltd., currently has 75% interest in the Carbon Creek Metallurgical Coal deposit, situated in northeast BC, Canada. Results of the preliminary economic assessment (all in USD) indicate that on a 75% basis and using a base case coal sale price of $185/t, the project returns a post-tax $752 million Net Present Value ("NPV") at an 8% discount rate and a 29.3% Internal Rate of Return ("IRR").
These results, together with higher and lower coal sale price assumptions, are outlined in Table 1, which also summarizes sensitivity of the project to operating and capital cost increases. Due to the scale of the project, it is economically robust and not especially sensitive to cost increases.
Table 1: Sensitivity Analysis ($millions)
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IRR NPV at 8% NPV at 10% NPV at 12%
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Base Case at $185 29.3% $752 $551 $408
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Coal Sales at $270 46.3% $1,755 $1,335 $1,033
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Coal Sales at $141 16.1% $229 $142 $79
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10% Increase in Direct Mining Costs 28.6% $696 $510 $377
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10% Increase in Capital Costs 28.6% $753 $551 $407
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More detailed economic results are outlined in Table 2, together with all key assumptions used in the economic modelling.
Table 2: Carbon Creek Project Summary
Discounted Cash Flow Model based on years 1 to 30 only
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Resource Measured & Indicated Mt 166.7
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Resource Inferred Mt 167.1
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Underground Mineable Tonnes Mt 115.1
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Mean Plant Recovery % 62%
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Underground Clean Coal Tonnes Produced Mt 71.4
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Surface Mineable Tonnes Mt 21.8
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Mean Plant Recovery % 68%
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Surface Clean Coal Tonnes Produced Mt 14.8
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Total Clean Coal Tonnes Produced Mt 86.2
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Surface Mining Minimum Seam Thickness M 0.6
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Surface Mining Maximum strip ratio Ratio 12.5:1
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Underground Mining Minimum Seam Thickness M 1.2
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Full Production Rate Clean Coal per Year Mt/yr 2.9
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Pre-Production Capital M$ 301
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Sustaining Capital LOM M$ 203
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Value of Leased Equipment LOM M$ 151
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Surface Mine OPEX ROM Basis $/t 30.62
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Underground Mine OPEX ROM Basis $/t 31.86
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Surface Mine OPEX Clean Coal Basis $/t 50.77
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Underground Mine OPEX Clean Coal Basis $/t 57.68
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Processing OPEX $/t 3.90
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Average direct mine costs (incl. equipment lease) $/t 60.76
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Haul, Rail & Port Costs $/t 42.42
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FOB Price Long-Term Base Case $/t 185
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Gross Revenue LOM M$ 15,952
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Operating Costs LOM M$ 6,145
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Pre-Tax Operating Cash Flow LOM M$ 6,149
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Post-Tax NPV 8 (75% Basis) M$ 752
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Internal Rate of Return (75% Basis) % 29.3
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Post-Tax NPV 8 (100% Basis) M$ 1,070
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Internal Rate of Return (100% Basis) % 35.1
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Undiscounted Post-Tax Cash Flow (75% Basis) M$ 3,113
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PRELIMINARY ECONOMIC ASSESSMENT REPORT
Norwest Corporation ("Norwest") has prepared a 43-101 Technical Report and Preliminary Economic Assessment on the Carbon Creek Metallurgical Coal Deposit ("Norwest Report"). The effective date of the Preliminary Economic Assessment is December 6, 2011 and for the updated resource estimate is October 1, 2011. Investors are urged to review the Norwest Report in its entirety.
The Company cautions that this PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the current (as at October 1, 2011) Carbon Creek estimated resource model, which consists of material in both the measured/indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized.
Carbon Creek Updated Mineral Resource
The key assumptions used to calculate the previous resource estimate (published June 3, 2011) were modified to reflect the increased detail of the PEA level of study. As a result, a new re-calculated resource estimate is included in the PEA, effective as at October 1, 2011. Results are summarized in Table 3.
Table 3: Classification of Resources
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Deposit Type ASTM Coal Rank Measured (Mt) Indicated (Mt) Inferred (Mt)
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Surface mvB 33.1 20.1 19.6
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Underground mvB 42.4 71.1 147.5
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Total mvB 166.7 167.1
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The mineralized zones encountered on the property are predominantly medium volatile bituminous coal seams, with minor increase or decrease in rank depending on structural or stratigraphic variations and depth of burial. Historic coal quality reports indicate that the coals will, with beneficiation (washing) to remove impurities, produce a product with coking properties suitable for metallurgic applications. Thermal coal suitable for electric power generation could be produced with or without further processing in addition to, or as an alternative to, a coking coal product.
Over thirty coal seams occur in the middle and upper portions of the Gething Formation. Sixteen seams are present through the northern half of the Carbon Creek property. Coal deposition is typical of the Gething Formation, consisting of abundant coal seams, some showing favorable metallurgical properties. The twelve seams listed in Table 4 are developed sufficiently to be of economic significance. These seams range from 1.14m to 2.17m in average thickness. Raw coal qualities are presented for each of these seams. Values shown represent coal without out-of-seam dilution (OSD). Processing coal mixed with OSD using size specific density and froth flotation separating processes (coal washing) is widely used to improve coal quality by reducing ash content and raising its calorific value. Coking properties such as free swelling index (FSI) and dilation are typically improved as well, through washing.
Raw coal qualities indicate good coking coal potential in seams 31, 40 and 52 based on average FSI values. In-place raw ash contents are generally low and all seams will be improved with washing which would reduce ash content further and typically increase the FSI by a few points. With careful blending, the other seams would likely be saleable in the coking coal market.
Table 4: Raw Coal Quality
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Coal Quality (air dried basis)
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Average Calorific
(m) Moisture Sulphur Volatile Fixed Value
Seam Thickness (%) Ash (%) (%) Matter (%) Carbon % Btu/lb FSI
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58 1.14 2.60 12.56 0.92 28.92 55.93 12,663 2.0
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55 1.57 2.74 12.42 0.68 28.59 56.26 12,893 2.5
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54 1.39 2.78 5.66 0.83 27.36 64.20 13,926 1.5
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52 1.63 2.18 17.14 1.88 28.33 52.35 12,178 4.0
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51A 1.29 2.74 6.25 0.80 28.01 63.00 13,902 2.0
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51 1.51 2.73 9.63 0.73 26.42 61.23 13,228 2.0
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47 1.14 2.53 15.49 0.91 24.00 57.98 12,441 1.5
---------------------------------------------------------------------------
46 1.70 2.60 6.50 0.83 26.92 63.99 13,907 2.0
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40 1.95 2.02 13.99 1.17 27.16 56.83 12,892 5.5
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31 1.99 1.50 25.74 1.42 24.33 48.43 10,906 6.0
---------------------------------------------------------------------------
15 2.17 1.08 17.11 0.57 21.14 60.67 12,602 2.5
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14 1.91 0.95 19.03 0.57 19.20 60.83 12,362 3.0
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Mineable Coal
Based on the existing geological model, a general mining layout was prepared for both surface and underground mining areas. Applying mining parameters, a mineable tonnage estimate was developed for each mining method as shown in Table 5.
Table 5: Mineable Coal Tonnes
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Mineable Tonnes Resource Tonnes
Mining Method (millions) (Measured & Indicated)
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Surface 21.8 53.2
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Underground 115.2 113.5
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Combined Total 137.0 166.7
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The ROM surface mineable tonnes are significantly lower than the surface resource identified above. This difference is explained by the fact that much of this resource is higher strip ratio and higher extraction cost relative to underground mining methods. The ROM underground tonnes exceed the geological resource estimate because the mining layout includes a small amount (1.7Mt) of Inferred tonnes.
Coal Processing
ROM coal will be crushed and sent to a coal washery where ash will be removed through heavy media separation of the coarse fractions and floatation for the fines fractions. Wash plant yields have been estimated on average at 68% for surface mined coal and 62% for underground mined coal. The clean coal will be dried in a fluidized bed dryer to approximately 6% moisture and stored in covered storage to keep it dry until shipment.
Production Volume and Schedule
Annual production is based on the proposed mining plans developed by Norwest. The surface mine will begin operations first, with the underground mine beginning operations two years after the surface mine. This allows time to develop an area to access the underground mineable coal seams. The combined mining operation is planned for 30 years excluding pre-production development and construction time.
The surface mine is projected to begin production at 3.1M ROM tonnes per annum (tpa) and maintain this level for 7 years. The expected wash plant yield of 68% results in 2.1Mtpa saleable coal from the surface mine. This production from surface mining is expected to yield 14.8Mt saleable over the seven year period (years 1 - 7).
The underground mine is expected to begin production in the third year of mine operations at .59Mtpa ROM increasing to the steady state level of 4.7Mtpa ROM by the beginning of the eighth year of mining operations. The expected wash plant yield of 62% results in 2.9Mtpa saleable from the underground mine. The underground mine is assumed to operate 28 years producing 115.2M ROM tonnes and 71.4M saleable tonnes. This production schedule depletes the measured and indicated underground mineable coal tonnes shown above in Table 5.
Transportation
Clean coal will be loaded into highway type coal haulers operated by a trucking contractor and hauled approximately 69km to a rail loadout on the CN railway. The coal will be offloaded into a bottom-dump hopper and conveyed to a twin dome covered storage structure. Clean coal will be drawn from beneath the storage piles onto a reclaim conveyor and loaded through a batch weighing system into unit trains. The coal will be transported to the ports of Vancouver and/or Prince Rupert for loading onto ships for transport to the Pacific Rim markets. The clean coal will be exposed to the elements during train transport and while stockpiled temporarily at the port and is expected to increase in moisture content to about 8%, which is the preferred maximum for ocean shipping.
Capital Costs
Pre-production capital requirements total $301M and include coal handling, coal preparation, train loadout facilities, surface facilities, site access and power, and mine development and contingency. All major surface and underground mining equipment is assumed to be leased with a seven year lease term at 4.5% and a 20% residual. The total value of the mining equipment being leased is $151M. Annual lease payments at full production for surface mining total $12.3M and $9.6M for underground.
Total capital excluding leased equipment is $504M over the LOM. Lease payments for mining equipment total $321M over the LOM.
Operating Costs
Operating costs have been estimated for the surface and underground mines based on required equipment hours, labour hours and materials and supplies. These costs are shown in Table 6 on a unit basis for each mine and the coal handling and preparation plant (CHPP).
Table 6: Cash Operating Costs
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Cost Area $/ROM tonne $/Clean tonne
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Surface Mining 30.62 50.77
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Underground Mining 31.86 57.68
----------------------------------------------------------------------------
Coal Handling & Prep 3.90
----------------------------------------------------------------------------
Sub-Total (Includes equipment lease payments) 60.76
----------------------------------------------------------------------------
Indirect Costs 10.51
----------------------------------------------------------------------------
Total Cash Costs 71.27
----------------------------------------------------------------------------
Economic Results
Norwest prepared an economic model that captures direct costs, including labor, equipment, materials, production taxes and royalties. Indirect costs including corporate overhead, mineral tax and property tax were added to the model along with depreciation of purchased equipment and facilities. A cash flow calculation was prepared on an after tax basis using an average FOB price of $185 per saleable tonne and an average clean coal production of 2.9Mtpa. Clean coal production increases from 2.1Mtpa to 3.2Mtpa over the first seven years of production and then averages 2.9Mtpa for the remaining mine life of 23 years. The first seven years includes surface mine production and the ramp up of underground mining. After seven years, the property is mined by underground methods only.
Pre-production cash outflows total $301M over the estimated three year development and construction period. Cash flow is positive once production begins and payback occurs by the end of the third year of production or six years after the initial cash outflow. After payback and providing for the net profits interest, cash flow averages $115M per year for a total net cash flow of $3.1B over the life of the mine for Cardero's 75% interest.
The internal rate of return for Cardero's 75% interest in the Carbon Creek Joint Venture is approximately 29%. Net present values at 8%, 10% and 12% are shown in the Table 7.
Table 7: NPV Results Cardero's
75% Interest ($millions)
-------------------------------
-------------------------------
Interest Rate 8% 10% 12%
-------------------------------
NPV $752 $551 $408
-------------------------------
-------------------------------
The internal rate of return for the entire property is approximately 35.1%. Net present values at 8%, 10% and 12% are shown in Table 8.
Table 8: NPV Results 100% Interest
($millions)
------------------------------------
------------------------------------
Interest Rate 8% 10% 12%
------------------------------------
NPV $1,070 $800 $605
------------------------------------
------------------------------------
Qualified Persons and Quality Control/Quality Assurance
Gary M. Stubblefield, P.E., of Norwest Corporation, is a professional engineer (Colorado, Montana and Utah) and, as such, is acting as the Qualified Person, as defined in NI 43-101 for certain portions of the Norwest Report. Mr. Stubblefield has a B.Sc. in Mining Engineering and more than 40 years of relevant experience in engineering and mine supervision and operations, including 18 years in surface coal mining. Both Mr. Stubblefield and Norwest are independent of the Company under NI 43-101.
Lawrence D. Henchel, SME, of Norwest Corporation, is a Registered Member of the Society for Mining, Metallurgy and Exploration, Inc (SME) and, as such is acting as the Qualified Person, as defined in NI 43-101 for certain portions of the Norwest Report, including the October 1, 2011 resource modeling for the Carbon Creek deposit. Mr. Henchel has a B.Sc. in Geology and 28 years of relevant experience as a geologist specializing in coal and industrial minerals in both exploration and mining. Both Mr. Henchel and Norwest are independent of the Company under NI 43-101.
About Cardero Resource Corp.
The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (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.
Michael Hunter, CEO
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for any production from the Carbon Creek deposit, the potential for a production decision to be made, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, the economic analysis of a production scenario at Carbon Creek and the results thereof, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource estimates and the preliminary economic analysis thereof may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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 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, variations in the market for, and pricing of, any mineral products the Company may produce or plan to produce, significant changes in the cost of any of the machinery, equipment or supplies required to develop and operate a mine at Carbon Creek, a significant change in the availability, required number or cost of the labor force required to operate a mine at Carbon Creek, significant changes in the cost or availability of transportation for the Company's products, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's 2011 Annual Information Form filed with certain securities commissions in Canada and the Company's annual report on Form 40-F filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed 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.
Cautionary Note Regarding References to Resources and Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in or incorporated by reference in this press release have been prepared in accordance with NI 43-101 and the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council on November 14, 2004 (the "CIM Standards") as they may be amended from time to time by the CIM, and in the Geological Survey of Canada Paper 88-21 entitled "A Standardized Coal Resource/Reserve Reporting System for Canada" originally published in 1988.
United States shareholders are cautioned that the requirements and terminology of NI 43-101 and the CIM Standards differ significantly from the requirements and terminology of the SEC set forth in the SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the Company's disclosures regarding mineralization may not be comparable to similar information disclosed by companies subject to SEC Industry Guide 7. Without limiting the foregoing, while the terms "mineral resources", "inferred mineral resources", "indicated mineral resources" and "measured mineral resources" are recognized and required by NI 43-101 and the CIM Standards, they are not recognized by the SEC and are not permitted to be used in documents filed with the SEC by companies subject to SEC Industry Guide 7. Mineral resources which are not mineral reserves do not have demonstrated economic viability, and US investors are cautioned not to assume that all or any part of a mineral resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher resource category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit amounts. In addition, the NI 43-101 and CIM Standards definition of a "reserve" differs from the definition in SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is defined as a part of a mineral deposit which could be economically and legally extracted or produced at the time the mineral reserve determination is made, and a "final" or "bankable" feasibility study is required to report reserves, the three-year historical price is used in any reserve or cash flow analysis of designated reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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.
NR12-01
Contacts:
Cardero Resource Corp.
Kareen McKinnon
Vice-President Investor Relations
Metallurgical Coal Projects
Direct: 604 638 1428
Cardero Resource Corp.
Nancy Curry
Corporate Communications
Iron Ore Projects
Direct: 604 638 3287
Cardero Resource Corp.
General Contact
604 408 7488 or Toll Free: 1 888 770 7488
604 408 7499 (FAX)
info@cardero.com
www.cardero.com
More CDY MessagesLatest Cardero Resource Corp. Ordina, CDY Messages
Yes. Spread the CDY good word.
Crazy...isn't it?
Remember this news from Dec 12? Cardero Receives Draft Preliminary Economic Assessment For Carbon Creek Metallurgical Coal Deposit, NE BC
Base Case Economic Assessment Returns Base Case $752M Post-Tax NPV8% & 29.3% IRR (75% Interest Basis)
Increases Measured & Indicated Resources by 46% to 166.7Mt
Increases Inferred Resource by 87% to 167.1Mt
This one property is valued at $752mm. CDY market cap only $87mm
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Cardero seeks to discover and fast track the development of its dynamic, multi-commodity portfolio of high-quality precious and base metal prospects in attractive under-explored regions of Mexico, Peru and Argentina.
Cardero's commodity focus includes: iron, copper, gold
Founded in 1999, Cardero has developed an extensive network of financial, mining and government relationships. Cardero continues to maximize shareholder value by utilizing management's extensive geological and operational expertise to implement the most economically sound and environmentally friendly approach to building its business.
Cardero Resource Corp. engages in the acquisition, exploration, and development of mineral properties in Argentina, Mexico, Chile, and Peru. It primarily explores for gold, silver, copper, and iron ore. The company has options to acquire 100% interests in Incahuasi property, which consists of seven minas, two cateos, and one tailing concession located in Catamarca Province, Argentina; Baja California Norte (IOCG) Project in Mexico; and Pampa de Pongo property, which consists of 8 adjoining mineral claims form contiguous claim block of 8,000 hectares. It also has agreements to acquire an interest, or the right to acquire an interest in various properties, including Mina Azules property, located in Jujuy Province, Argentina; La Poma Property, situated in Salta Province, Argentina; Amable Maria property, located in the Provinces of Chanchamayo and Jauja, Department of Junin, Peru; Lolita property, situated in the municipality of Lopez, Chihuahua State, Mexico; and Pedernales property, Chile. Cardero Resource was incorporated in 1985 as Halley Resources, Ltd. and changed its name to Rugby Resources Limited in 1991. Later, it changed its name to Euro-Ad Systems, Inc. in 1993; to Sun Devil Gold Corp. in 1997; and to Cardero Resource Corp. in 1999. The company is headquartered in Vancouver, Canada.
http://www.cardero.com
Cardero Resource Corp.
Suite 1901 1177 West Hastings Street
Vancouver, B.C. V6E 2K3
Tel: 604-408-7488
Fax: 604-408-7499
General Information: info@cardero.com
Investment and Corporate Communications
Quentin Mai
604-408-7488 (ext. 226)
qmai@cardero.com
Highlights
* Aggressively exploring over 200,000 hectares of highly prospective Iron Oxide Copper Gold (IOCG) ground within the Alisitos Arc in Baja California Norte
* In 2003, regional targeting highlighted numerous high priority target areas. Subsequent ground follow-up and 'screening' identified several large, zoned hydrothermal systems with associated iron oxide copper gold mineralization (see PR May 19, 2004)
* In 2006, Copper Mineralization intersected at Baja IOCG project. In summary, all drill holes contain intense (texture destructive) IOCG alteration with associated visible copper mineralization (chalcopyrite) that varies from trace amounts to significant accumulations (+20 m). The results indicate that this newly discovered district displays all of the key criteria necessary to form a large copper (Cu) bearing IOCG deposit (see PR Jan 05, 2006)
* March 29, 2006, at Picale Target, Borehole 05-PC-03 intersected 6.5m of massive to semi-massive magnetite - chalcopyrite mineralization that graded 4% Cu & 0.4 g/t Au, within which 4.2m returned 5.5% Cu and 0.56 g/t Au (see PR March 29, 2006)
Highlights
* At 100% owned Iron Sands project totaling 32,000 Ha south of Nazca, coastal region of Southern Peru, initial test results of two bulk samples sent to Midrex Technologies in North Carolina, USA has characterized property as "very encouraging", concluding that a "liquid metal button containing ~ 94% iron, ~ 5% carbon and <0.05% sulphur can be produced with excellent separation of metal to slag." (see PR June 23, 2005)
* Pampa de Pongo, a 100% owned project totaling 8,000 Ha in Marcona District, Rio Tinto concluded that, "Wide-spaced drilling suggests a potential resource of 1,000Mt comprising approximately 75% magnetite." Furthermore, preliminary metallurgical test work carried out by RT indicated that a simple low intensity magnetic separation could produce a saleable concentrate grading 66 to 69% iron (see PR June 24, 2004)
* The independent resource estimate concluded that the Pampa de Pongo deposit contains an Inferred Resource of approximately 953 million tonnes averaging 44.7% Fe, 0.12% Cu, 0.09 g/t Au based on the results of the 2004-2005 drill campaign, 3D magnetic modeling as well as prior drill results obtained by Rio Tinto plc. (see PR September 06, 2005)
* Seven properties 100% owned totaling 60,000 hectares around the productive Marcona IOCG district
The Marcona IOCG district is the most economically important in Southern Peru because it hosts the large iron oxide (+/- copper-gold) deposits of the Marcona mine (1,400 million tonnes iron ore) and Pampa de Pongo (1,000 million tonnes 75% magnetite)
Highlights
* Nineteen gold and copper gold properties partially or 100% owned by Cardero totalling over 125,000 hectares.
* Finalizing the acquisition of twelve new gold properties located in the provinces of Jujuy and Catamarca in northwest Argentina. The properties cover an aggregate area of approximately 580 square kilometres and are a combination of 100% Cardero owned (staked) ground and land being acquired through option agreements with local third parties (presently being finalized). The discovery and acquisition of these properties is the result of an aggressive year long multidisciplinary regional exploration program targeting a Sedimentary Hosted Vein (SHV) model in the 61,000 square kilometre Ordovician Santa Victoria Basin.
* Geologically, the Huachi property is comprised of a high-level porphyry complex that displays all the characteristics of a high sulfidation, epithermal gold system. The property is also prospective for porphyry copper mineralization, the underlying intrusive phases are cross-cut by a well-developed quartz - sulphide stockwork and, locally, copper oxides (in addition to bornite - chalcopyrite - quartz - magnetite - 'shreddy' biotite and potassium feldspar) are present. During the initial property examination and due diligence Cardero geologists collected 47 rock samples within the "Main Stockwork Zone" at Huachi. Anomalous gold grades were returned from every area sampled, with an average of all samples returning 0.88 g/t gold. In addition, a 135 metre long continuous chip sample, collected in a distal portion of the system, averaged 0.38 g/t gold (within which a 10 metre chip sample returned 4.18 g/t gold).
Share Structure
(as at January 17, 2011)
Shares Issued 59,260,602
Warrants 0
Options 4,835,000
Shares Fully Diluted 64,095,602
Share structure defined: http://www.cardero.com/s/ShareStructure.asp
Float: 46.4M
% Held by Insiders: 12.00%
% Held by Institutions: 17.00%
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