Cardero cuts silver at Providencia

Vancouver The latest drill results from Cardero Resource (CDU-V) has breathed fresh life into the Olaroz silver project in northwestern Argentina.

The junior picked up the project back in September 2002 by inking four deals that cover 330 sq. km in the Salar Olaroz region of Jujuy province. Studies by the United Nations in 1982 defined a large structure of silver and copper mineralization some 750 metres long, 150-250 metres wide, and at least 75 metres deep. The UN identified native copper and silver, chalcocite and enargite. Initially the mineralization was thought to mark an extensive, flat-lying red-bed or roll-front copper-silver deposit within a gently east-dipping conglomerate horizon. An alternative theory is that the mineralization is epithermal, as suggested by the clay-carbonate alteration, low sulphur content, abundant lead-zinc mineralization, and presence of arsenic, antimony and mercury trace elements.

In the surface pits, Cardero carried out chip sampling program over a 350-by-750-metre area to vertical depths of 75 metres.

The prospect of a large silver find sent shares of Cardero soaring to nearly $2.70 a piece from a low of $0.27. The initial drill results, which returned a high value of 133.2 grams silver over 34.5 metres in hole 5, sent the shares plunging back to earth, closing as low as $0.67.

The latest drill results come from in and around the Providencia pit area. Highlights include:

• Hole 6 18.9 metres grading 224.3 grams silver per tonne;
• Hole 6A 13.5 metres grading 556.5 grams silver;
• Hole 11 19.6 metres grading 25.8 grams silver;
• Hole 12 30 metres grading 38.7 grams silver;
• Hole 13 11 metres grading 82.8 grams silver;
• Hole 14 16 metres grading 35.2 grams silver, and
• Hole 22 40 metres grading 187.1 grams silver.

The results suggest north-south mineralized fault structures running through the Providencia area over an 800 metre strike length with possible extensions to the north and south.

Cardero is currently evaluating all the data in preparation for a new drill program slated to start in Sept.