Firstenergy Corp. (FE)

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Cardero Announces Magnetic Survey Results & Exploration Potential for Pampa de Pongo Iron Deposit
Thursday April 17, 1:58 pm ET


NI 43-101 Resource of 953Mt @ 44.7% Iron and 0.12% Copper


VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 17, 2008 -- Cardero Resource Corp. ("Cardero" or the "Company") (Toronto:CDU.TO - News)(AMEX:CDY - News)(Frankfurt:CR5.F - News) is pleased to announce detailed ground magnetic survey results and the interpretation of the significant exploration potential at its 100% owned Pampa de Pongo Iron Deposit in Peru. Pampa de Pongo is the largest undeveloped iron resource on the western seaboard of the Americas, with a N.I. 43-101 Inferred Resource of 953Mt @ 44.7% iron and 0.12% copper. The Company has embarked on an aggressive work program designed to quantify the Pampa de Pongo iron deposit, starting with a magnetic survey, a mining scoping study, a definition drill program and a pre-feasibility study. Cardero will provide regular updates in the coming months as work progresses.
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Ground Magnetic Survey

Cardero's recently completed detailed ground magnetic survey has identified a large magnetic anomaly located to the south of the known central deposit, where Rio Tinto drilled one drillhole (PPD-04, Figure 1) and intersected significant massive iron mineralization. Given the strong correlation between magnetic anomalies and ore grade intersections in the central deposit, Cardero is confident that the new anomaly to the south has potential to be ore grade. The new anomaly measures 1,400 x 530 metres at its widest point, which is comparable in size with the 848Mt central deposit (1,260 x 890 metres).

The Pampa de Pongo iron deposit has a strong magnetic response, which can be seen on the regional airborne magnetic survey data (Figures 2 and 3). In 2004, Cardero undertook a ground magnetic survey covering the central and southern deposits at Pampa de Pongo (Figure 2). Data from the 2004 survey was processed by Quantec Geophysics and the resulting 3D magnetic body demonstrated an extremely strong correlation with thick, high-grade mineralization intersected during resource definition drilling.

To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/0417cru.jpg

In March 2008, Cardero completed an expanded magnetic survey (Figure 2) to evaluate exploration potential beyond the known resources. Quantec completed inversion modeling of a central area (outlined in Figure 3), which includes the known central deposit. An inversion model is a 3D model highlighting areas of high magnetic susceptibility. A horizontal slice at a depth of 400 metres from surface is presented in Figure 1.

The map shows a strong anomaly in the north of this central area, which corresponds to the central deposit at Pampa de Pongo (848Mt @ 44.9% iron and 0.12% copper).

Critically, the survey has identified a new, large magnetic anomaly located to the south, where Rio Tinto drilled one drillhole (PPD-04, Figure 1) and intersected significant massive iron mineralization. Given the strong correlation between magnetic anomalies and ore grade intersections in the central deposit, Cardero is confident that the new anomaly to the south has potential to be ore grade. The new anomaly measures 1,400 x 530 metres at its widest point, which is comparable in size with the 848Mt central deposit (1,260 x 890 metres).

Drillhole PPD-04 intersected iron mineralization from 276 to 558 metres (282 metres) and from 609.2 to 633.1 metres (23.9 metres). Highlights include:



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Drillhole From (m) To (m) Interval (m) Fe %
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PPD-04 276 290 14 43.57
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PPD-04 296 362 66 43.31
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PPD-04 472 516 44 47.48
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PPD-04 522 536 14 46.02
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PPD-04 609 624 14.8 48.52
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(i) Data sourced from Rio Tinto.
The iron mineralization intersected in drillhole PPD-04, located within the new magnetic anomaly, suggests that the anomaly may be caused by iron mineralisation. As such, this new anomaly represents significant upside potential for the 953Mt Pampa de Pongo Iron deposit.

Project Background

Cardero's 100% owned Pampa de Pongo Iron deposit is the largest undeveloped iron resource on the western seaboard of the Americas, with a NI 43-101 Inferred Resource of 953Mt @ 44.7% iron and 0.12% copper (see September 6, 2005 news release). Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineralization remains open. Cardero is investigating the possibility of extracting iron ore through a combination of open-pit and underground block-caving methods to produce a high grade, direct shipping +65% magnetite ore and a blast furnace or direct reduction grade iron pellet product. Both products would be shipped from a nearby deep water port, 40 kilometres to the west.

Cardero's primary focus during the next 12 months will be to further quantify its iron assets, which enjoy considerable infrastructural advantages in comparison to other similar stage projects globally, including proximity to a under-utilized deep water port, the availability of cheap electrical power, the planned extension of a near-by natural gas pipeline, the proximity of the Pan-American highway bordering the projects, the existence of a pre-existing iron mining labour pool and, finally, a stable, pro-mining government.