Cardero provides update on Pampa de Pongo

Tag : pellet binder
Tuesday , 22 Jul 2008

Cardero Resource Corp. ("Cardero" or the "Company") - (TSX: CDU,AMEX: CDY, Frankfurt: CR5) is pleased to provide an update on thePampa de Pongo Iron Deposit metallurgical assessment, currently inprogress at the Natural Resources Research Institute (NRRI),Minnesota. Preliminary results have been extremely positive:Grinding tests indicate that a high grade concentrate can beproduced with high iron content (66.87% - 68.54%) and low silicacontent (0.18% - 0.57%). Furthermore, a representative sample ofthis concentrate was subsequently used in a pelletizing test toproduce an excellent pellet, with 95.9% of the pellets greater than¼ inch following a tumble test.
Pilot-scale beneficiation (crushing, grinding, and rougher andcleaner wet magnetic separation) is nearing completion. Pilot-scalepelletizing and fired-pellet production is scheduled to commencenext week and should be completed within three weeks.
The Company's ultimate goal of the test-work is to demonstrate thatPampa de Pongo ore can produce a premium, high-quality DirectReduction-grade pellet. Direct Reduction pellets are premiumproducts and typically attract higher value contracts than BlastFurnace-grade pellets. Inclusion of positive, commercial-scalemetallurgical work into the Mine Scoping Study currently underwayis expected to add significant value to the Pampa de Pongo project.
Metallurgical Sample
Metallurgical testing is being undertaken with 1,090 kilograms ofPampa de Pongo drill core, which was selected by SRK ConsultingEngineers and Scientists (SRK) to be representative of the depositchemistry.
Bench-Scale Testing
Bench-scale work has been undertaken to select the beneficiationflow sheet and process parameters before initiating Pilot-Scaletesting. Preliminary results are highly positive and highlights areas follows:
• Bench-scale liberation grind testing with a Davis tubemagnetic separator identified that an excellent quality concentratecan be produced with high iron content (66.87% - 68.54%) and lowsilica content (0.18% - 0.57%). A target size of 85-90% minus 200mesh was selected for the pilot scale comminution (crushing).
• A representative sample of concentrate was produced,pelletized with a bentonite binder (15 lbs/long ton of concentrate)and fired by mini-pot.
• The mini-pot pellets, shown in Plate 1, have a meancompressive strength of 421 pounds-force. A 650 gram mini-tumbletest was conducted to determine the amount of fines the pelletsgenerate. The results were excellent, with 95.9% greater than 1/4inch. Experience shows that this bench-scale tumble-test typicallycorrelates well with the 25 pound ASTM tumble tests.
• A preliminary ISO swelling test returned a favourable resultof +11.2%.
Two additional mini-pot tests are being undertaken to optimize thefiring cycle to further increase pellet strength and to define thepilot-scale (full pot-grate) pellet production parameters. Thesemini-pot test results are a good relative indicator of pelletphysical quality but are not necessarily commercially scalable. Thepilot-scale results will ultimately demonstrate the physical andmetallurgical pellet quality that can be produced commercially.
Pilot-Scale Testing
The pilot plant is shown operating with Pampa de Pongo ore in Plate2. Pilot-scale beneficiation (crushing, grinding, and rougher andcleaner wet magnetic separation) is nearing completion. Pilot-scalepelletizing and fired-pellet production is scheduled to commencenext week.
A representative sample of the pilot-scale pellets will be analyzedfor reducibility, low temperature breakdown (LTB), and swelling todetermine their quality as a commercial-scale blast furnace pelletfeed. Additional pot-grate pellets will be further evaluated(through industry-standard hot-load and Linder furnace testing) byMIDREX Technologies, Inc., the world leader in gas-based DirectReduced Iron (DRI) technology. The goal is to demonstrate thatPampa de Pongo ore can produce a premium, high-quality DirectReduction-grade pellet. Direct Reduction pellets are premiumproducts and typically attract higher value contracts than BlastFurnace-grade pellets.
Project Background
Cardero is moving quickly to complete pilot-scale metallurgicaltest work, which is commercially scalable, (See NR08-15), forinclusion in the Mine Scoping Study currently underway by SRK.
Metallurgical testing is being completed by NRRI, who selectedbecause their personnel bring previous experience beneficiatingsimilar iron ore from the Marcona Mine, located approximately 35kilometres to the northwest of Pampa de Pongo. They havesignificant expertise beneficiating and pelletizing iron oresthroughout the world, including the magnetic taconites in Michiganand Minnesota in the U.S. and in Canada.
Qualified Person
EurGeol Mr. Keith J. Henderson, Cardero's VicePresident-Exploration and a qualified person as defined by NationalInstrument 43-101, has reviewed the scientific and technicalinformation that forms the basis for this news release. Mr.Henderson is not independent of the Company as he is an officer.
The work programs at Pampa de Pongo are designed by, and aresupervised by, Keith J. Henderson, Cardero's VicePresident-Exploration, and Dr. S. Jayson Ripke, Cardero Iron OreManagement (USA) Inc.'s Vice President - Technical, who togetherare responsible for all aspects of the work, including the qualitycontrol/quality assurance program. Metallurgical test work is beingundertaken by Natural Resources Research Institute's (NRRI's)Coleraine Minerals Research Labs (CMRL), Minnesota, and the work isdesigned and supervised by Dr. Ripke. NRRI follow international(ISO) and North American (ASTM) procedures where such proceduresexist for highly specialized pelletizing test work. NRRI aregenerally considered to be industry leaders in this type of testwork.
Grant of Incentive Stock Options
The Company also announces that, pursuant to its 2002 IncentiveStock Option Plan, it has granted incentive stock options tocertain directors, officers, employees and consultants allowingthem to purchase up to an aggregate of 2,000,000 common shares inthe capital stock of the Company. The options are exercisable at aprice of CAD 2.04 for a period of two years ending July 21, 2010.
About Cardero Resource Corp.
Cardero's focus through 2008 will be to realise the considerablevalue it believes is locked in the Company's significant iron oreassets, while continuing to progress its base and precious metalexploration projects in Argentina and Mexico. The common shares ofthe Company are currently listed on the Toronto Stock Exchange(symbol CDU), the American Stock Exchange (symbol CDY) and theFrankfurt Stock Exchange (symbol CR5). For further details on theCompany readers are referred to the Company's web site ( www.cardero.com ), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov .