Cardero Resource’s exploration partner, Hochschild Mining has requested Cardero to exercise its option from the underlying vendor (Stenfield Minera) and complete the purchase of Los Manantiales property (formerly “Mina Angela”) on behalf of the partnership 12 months ahead of schedule. Some impressive polymetallic finds have been made there. Hochschild Mining elected to make both the $150,000 payment due April 25, 2007 and the final payment of $150,000 due April 25, 2008 to complete the purchase of the property. The applicable concessions are in the process of being transferred to Cardero Argentina, which will, in turn, contribute them to a new Argentinean joint venture company jointly owned with Hochschild Mining. As project operator, Hochschild Mining will commence an exploration program in third quarter 2007.
Mineralization at Los Manantiales consists of epithermal vein systems hosted by a Jurassic volcanic sequence. Production took place on selected veins between 1978 and 1992. Mineralization remains open at depth. In 1997 and 1998, Lonrho Mining discovered a previously unknown vein system, El Sahuel. Based on very limited testing, the best drill intersection obtained was 1.36 m grading 40.65 g/t Au, 1,773 g/t Ag, 1.79% Pb, 0.23% Cu and 10.06% Zn at a vertical depth of 65 m below surface. Another hole drilled on the system intersected a second vein approximately 65 m to the west which returned 2 m averaging 6.69 g/t Au, 240 g/t Ag, 0.52% Pb, 0.04% Cu and 2.19% Zn. Geophysics indicates that the vein system has a potential strike length of 1.6 km. The system is presently poorly delineated and remains open along strike and at depth. The foregoing information pre-dates the implementation of NI 43-101 and should therefore not be considered to be 43-101 compliant.
“The fact that our valued partner elected to complete the purchase of the project on an accelerated basis following completion of their internal due diligence is a huge vote of confidence for this exciting potentially near-term producer” stated Henk Van Alphen, Cardero President and CEO. “As previously stated, this is a superb opportunity that allows us to leverage our aggressive exploration strategy while having the opportunity for significant participation in a cashflow project operated by an established producer”.
Hochschild Mining currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. It also has two advanced stage development projects, one in each of Mexico and Peru and one early stage development project in Mexico. In addition, Hochschild has over 20 long-term prospects throughout Latin America and has over 40 years experience in the mining of precious metal epithermal vein deposits.
Cardero is well financed and positioned to continue to explore its projects in Mexico, Peru, and Argentina. The company is actively evaluating new gold, copper and iron projects, and continues to maintain an active pipeline of prospects.
