Cardero cuts wide copper-gold at Huachi (January 24, 2007)

Vancouver – Initial drilling by Cardero Resource (CDU-T, CDY-X) on its Huachi project in Argentina’s San Juan province returned wide intervals of copper-gold mineralization in the porphyry environment.

A trio of holes tested two altered porphyritic intrusions returning:

• Hole 06-HU-01 Intersected 199 metres (from surface) of 0.25% copper and 0.12 gram gold per tonne to give a 0.34% copper equivalent; the hole was lost at 200 metres ending in mineralization;
• Hole 06-HU-02 Cut 353 metres (essentially from surface) averaging 0.35% copper and 0.18 gram gold (0.48% copper equivalent) that also ended in mineralization and included a 243-metre section of 0.4% copper with 0.2 gram gold (for 0.56% copper equivalent) with an even higher-grade 88-metre component grading 0.48% copper plus 0.27 gram gold (0.68% copper equivalent); and
• Hole 06-HU-03 Collared about 400 metres north of holes 1 and 2, on an interpreted distal pyrite halo, it failed to reach its target depth but did return a 122-metre intercept (from 86 metres downhole depth) grading 0.17% copper and 0.3 gram gold (0.39% copper equivalent) with the last 44 metres running 0.2% copper and 0.37 gram gold (0.47% copper equivalent).

The initial program has Cardero optimistic with results indicating holes were likely collared above or possibly on the flanks of a mineralized core. Veinhosted mineralization of up to 9.4% copper, 50 grams gold and 154 grams silver per tonne has been identified about 800 metres west of the first two holes and is hypothesized as potential “peripheral leakage” from a higher-grade zone of the intrusives.

Based on the wide mineralized intercepts, the company plans to boost its follow-up drill program to about 4,000 metres.

In late-2005 Cardero entered its option to acquire 100% of Huachi subject to a 2% net smelter return royalty. Obligations include staged payments of US$5.44 million over five years plus US$2 million in exploration commitments.