Cardero tables La Providencia results

Vancouver — Cardero Resource (CDU-V) has received more encouraging results from its exploration program on the 330 sq. km Olaroz silver project in the province of Jujuy in northwestern Argentina.

Channel samples were collected early this year from the historical mine workings of the La Providencia silver deposit. This sampling program is designed to help define geological controls and delineate the distribution of mineralization.

So far, Cardero has collected 1,130 channel samples with a weighted average value of 188 grams silver per tonne. All of the samples were taken from the mine workings within an area measuring 800 metres long by up to 300 metres wide.

Cardero’s sampling method for the open-pit mine workings is outlined as follows;

• A sub-horizontal channel is cut along a wall in a pit, bench, exploration trench, mine access road or cut, that defines the complete horizontal extent of the panel.
• A series of regularly spaced near vertical channels are cut into the wall of the pit or bench which are aligned approximately at 90 degrees to the flat or gently east dipping strata.
• The extremities of each vertical channel define the top and base of the panel.
• The assay values listed are the weighted average grades of all the channel samples comprising a panel.

Highlights of the most recent batch of channel sample results are as follows;

• Panel 9W Pit averaged 1,075 grams silver, 0.99% copper, 0.51% lead and 0.27% zinc over 17.5 metres.
• Panel 11NPit-Wface averaged 262 grams silver, 0.29% copper, 0.03% lead and 0.20% zinc over 20.0 metres.
• Panel 13Npit-Wface averaged 226 grams silver, 0.25% copper, 0.07% lead and 0.30% zinc over 12.5 metres.
• Panel 13South averaged 675 grams silver, 0.92% copper, 0.23% lead and 0.18% zinc over 7.5 metres.
• Panel 14NPit-Wface averaged 254 grams silver, 0.12% copper, 0.15% lead and 0.21% zinc over 15.0 metres.
• Panel 15NPit-Wface averaged 485 grams silver, 0.60% copper, 0.21% lead and 0.21% zinc over 7.5 metres.
• Panel 17NhillE-W averaged 305 grams silver, 0.23% copper, 0.07% lead and 0.23% zinc over 10.0 metres.
• Panel 20West averaged 880 grams silver, 0.86% copper, 2.10% lead and 0.34% zinc over 7.5 metres.
• Panel 22SE averaged 542 grams silver , 0.36% copper, 0.35% lead and 0.48% zinc over 5.0 metres.

Sampling and mapping, so far, has indicated that strong silver mineralization is spatially related to sets of north and northeast striking faults and fractures in sandstone and conglomerate sedimentary rocks.

These mineralizing structures appear to dip steeply to the east and repeat every 100 metres over a lateral extent of about 700 meters. Cardero states that these structures represent drill targets for vertical “feeder-zone” style mineralization.

In 1982, drilling east of the mine workings intercepted 67 grams silver over 106 metres in hole 10; 121 grams silver over 42 metres in hole 9; and 132 grams silver over 39 metres in hole 8. Cardero reports that these holes appear to have been halted in mineralization may be adjacent to a north-south “feeder zone”.

Cardero believes that the mineralizing fluids migrated northeast from the feeder zone along steeply dipping northeast structures and deposited their payload into conglomerate rocks. These favourable host rocks are believed to be preserved close to surface northeast, northwest and south of the main Providencia silver deposit area.

Once it has prioritized its drill targets, the company plans to kick off a reverse circulation drill program in order to test these areas surrounding the mine.

Moving 15 km to the northwest to the Chingolo property, Cardero’s shallow bedrock sampling program is expected to be finished by the end of March. Samples are being collected on 50 x 50 metre centers to better define a 400-by-600 metre silver, lead, zinc, arsenic and antimony geochemical anomaly. A reverse circulation drill program will follow in order to evaluate the depth potential of the Chingolo silver prospect.