VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/11/13 -- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE MKT: CDY)(NYSE Amex: CDY)(FRANKFURT: CR5) announces the results of the maiden resource estimate for the Sheini Hills Iron Project, Ghana, undertaken by SRK Consulting (UK) Ltd. ("SRK"). SRK has reported an estimated inferred mineral resource of 1.3 Billion Tonnes ("Bt"), with mean grades of 33.8% Fe, 6.0% Al2O3, 37.3% SiO2 and 0.27% P, using a 15% cut-off grade, all of which falls within a Whittle optimization pit with a global strip ratio of 0.93.
Maiden Resource Estimate
SRK is preparing a National Instrument 43-101 ("NI 43-101") technical report, including a maiden resource estimate, for the Sheini Hills Iron Project in northeast Ghana ("SRK Report"). The maiden estimated mineral resource is calculated in accordance with CIM Standards on Mineral Resources and Reserves (CIM Guidelines) as set out in NI 43-101. The effective date of the SRK Report is January 7, 2013, and the completed SRK Report will be filed on SEDAR and made available through the Company's website within 45 days of this news release. Investors are urged to review the SRK Report in its entirety once it becomes available.
In total, SRK has reported an inferred mineral resource of 1.3 Bt, with mean grades of 33.8% Fe, 6.0% Al2O3, 37.3% SiO2 and 0.27% P (at a cutoff of 15% Fe), all of which falls within a Whittle optimisation pit which has a global strip ratio of 0.93 (waste tonnes:ore tonnes) and which was generated by SRK to restrict the estimated inferred mineral resource to material which has potential to be economically exploited.
Table 1: Mineral Resource Statement, Sheini Hills Iron Project, Ghana, SRKConsulting (UK) Ltd., effective date 7 January 2013. Reported above a 15% Fe cut-off and within an optimized pit shell.---------------------------------------------------------------------------- ResourceZone Category Tonnes (Mt) Fe % Al2O3% SiO2% P %----------------------------------------------------------------------------Ironstone Sheini Central -North Inferred 349.2 37.6 4.4 34.3 0.26----------------------------------------------------------------------------Ironstone Sheini Central -Centre Inferred 111.1 34.6 5.2 38.0 0.28----------------------------------------------------------------------------Ironstone Sheini Central -South Inferred 581.0 33.9 5.4 37.2 0.36----------------------------------------------------------------------------Ironstone Hardcap Inferred 4.1 36.5 8.5 32.3 0.09----------------------------------------------------------------------------Ironstone Total Inferred 1,045 35.2 5.1 36.3 0.32----------------------------------------------------------------------------Detritals Inferred 266.9 28.2 9.5 41.1 0.09----------------------------------------------------------------------------TOTAL Inferred 1,312 33.8 6.0 37.3 0.27----------------------------------------------------------------------------Notes:(1) Mineral Resources which are not Mineral Reserves have no demonstratedeconomic viability.(2) The effective date of the Mineral Resource Estimate is 7 January 2013.(3) The Mineral Resource Estimate for the Sheini deposit was constrainedwithin lithological solids and within a Lerchs-Grossman optimised pit shelldefined by the following assumptions; pig iron flow sheet; metal price ofUSD400/t; slope angles of 53 degrees in the ironstone and detritalmaterial; a mining recovery of 95.0%; a mining dilution of 5.0%; a base casemining cost of USD2.50/t; process operating costs of USD2.50/t ore USD4.50/tore in the ironstone and detrital respectively; ironstone processingrecovery of 100%; Detrital processing recovery of 25%; reductant costs ofUSD0.58/t%Fe and other concentrate costs of USD33.33/t; smelting costs wereseparated into power and other costs and were estimated at 27.50 USD/t and51.00 USD/t, respectively; 90% assumed product grade.(4) Mineral Resources for the Sheini deposit have been classified accordingto the "CIM Standards on Mineral Resources and Reserves: Definitions andGuidelines (December 2005)" by Howard Baker (MAusIMM(CP)), an independentQualified Person as defined in NI 43-101.
