Cardero Announces Maiden Inferred Resource Estimate for

Cardero Announces Maiden Inferred Resource Estimate for Sheini Hills
Iron Project, Ghana 
SRK Reports 1.3 Billion Tonnes grading 33.8% Iron including 1.05
Billion Tonnes Primary Ironstone and Hardcap @ 35.2% Iron and 0.27
Billion Tonnes Detrital Iron @ 28.2% Iron 
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

 Table 1: Mineral Resource Statement, Sheini Hills Iron Project, Ghana, SRK 
Consulting (UK) Ltd., effective date 7 January 2013. Reported above a 15% Fe
                 cut-off and within an optimized pit shell.                 
Zone                         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
(1) Mineral Resources which are not Mineral Reserves have no demonstrated   
economic viability.                                                         
(2) The effective date of the Mineral Resource Estimate is 7 January 2013.  
(3) The Mineral Resource Estimate for the Sheini deposit was constrained    
within lithological solids and within a Lerchs-Grossman optimised pit shell 
defined by the following assumptions; pig iron flow sheet; metal price of   
USD400/t; slope angles of 53 degrees in the ironstone and detrital         
material; a mining recovery of 95.0%; a mining dilution of 5.0%; a base case
mining cost of USD2.50/t; process operating costs of USD2.50/t ore USD4.50/t
ore in the ironstone and
 detrital respectively; ironstone processing        
recovery of 100%; Detrital processing recovery of 25%; reductant costs of   
USD0.58/t%Fe and other concentrate costs of USD33.33/t; smelting costs were 
separated into power and other costs and were estimated at 27.50 USD/t and  
51.00 USD/t, respectively; 90% assumed product grade.                       
(4) Mineral Resources for the Sheini deposit have been classified according 
to the "CIM Standards on Mineral Resources and Reserves: Definitions and    
Guidelines (December 2005)" by Howard Baker (MAusIMM(CP)), an independent   
Qualified Person as defined in NI 43-101.                                   

The Company cautions that the accuracy of resource and reserve
estimates is, in part, a function of the quality and quantity of
available data and of engineering and geological interpretation and
judgment. Given the data available at the time the SRK report was
prepared, the estimates presented are considered reasonable. However,
they should be accepted with the understanding that additional data
and analysis available subsequent to the date of the estimates may
necessitate revision. These revisions may be material. SRK is unaware
of any environmental, permitting, legal, title, taxation,
socio-economic, marketing, and political or other relevant issues
that may materially affect the mineral resources. Mineral resources
which are not mineral reserves do not have demonstrated economic
Mineral Resource Estimation Methodology 
Resource Database 
The resource database upon which the mineral resource estimate is
based predominantly comprises diamond and reverse circulation
drillhole data generated by Cardero from the 2012 Phase I drilling
program at Sheini. This data has been supplemented by surface
geological mapping and subsequent cross-sectional geological
interpretations constructed on the basis of both mapping and
drillhole data. The drillhole database comprises 67 diamond
drillholes (9,478 metres) and 127 reverse circulation drillholes
(1,923 metres). Diamond drillholes are spaced on section lines
between 200 m and 800 m apart. Reverse circulation drillholes are
concentrated in areas of known detrital mineralisation and are
typically spaced on section lines 200 to 400 m apart. The assay
database comprises 4,399 samples. 
Geological Interpretation 
Iron mineralization at Sheini occurs as primary ironstone (banded and
granular types with local hardcap development) and as detrital iron
deposits (located on plains, peripheral to the ironstone deposits).
Primary iron mineralisation identified at Sheini, being classed as a
"Rapitan-type iron formation", predominantly comprises bladed
haematite with lesser iron hydroxides (goethite and limonite)
confined to interbedded banded iron formation and granular iron
formation at the base of the Late Precambrian - Early Phanerozoic
Buem Formation. The ironstone package and adjacent footwall and
hanging wall lithologies have been subjected to ductile deformation
resulting in a series of broadly N-S trending asymmetric inclined
fold structures, offset by a series of NNE-SSW trending, and later
E-W to ENE-WSW trending, brittle faults. The iron mineralisation is
sedimentary in origin, and extends to a total of approximately 8.6
kilometres along strike, up to 1.2 kilometres across strike and to
depths of up to 300 metres from surface. 
Geological modelling was conducted in 3D Geomodeller software, using
logged ironstone as an explicit control on model geometry. Primary
ironstone was modelled within three spatially distinct domains -
north zone, central zone and south zone, all of which lie within the
Sheini Central prospecting licence. In addition to primary ironstone
mineralisation, re-deposited detrital material forms extensive
flat-lying platforms adjacent to N-S trending ridges throughout the
project area. Figure 1 shows the distribution of the ironstone and
detrital units modelled. 
To view Figure 1, please visit the following link:  
SRK is of the opinion that it is appropriate to classify the resource
in the inferred category as defined by CIM Guidelines in this case. 
Initial Metallurgical Testwork 
SRK supervised and reviewed a certain amount of metallurgical test
work on samples collected from the Sheini deposit so as to determine
whether or not the material has potential to be used to produce a
saleable product and so enable it to report the above mineral
resource estimate. SRK is satisfied that the iron mineralization has
reasonable prospects for economic extraction as required by CIM
Work Completed to Date 
Initial metallurgical test work has been completed by SGS Mineral
Services UK Limited ("SGS"), primarily at laboratories in the UK, and
by Cardero Materials Testing Laboratory Ltd. ("CMTL"), located in USA
(which is owned by the Company, and is therefore not an independent
testing laboratory). Petrographic reports, QEMSCAN and X-Ray
Diffraction work together suggest that the iron mineralisation at
Sheini consists of very finely disseminated haematite within a silica
matrix. Initial w
ork has been completed on three samples to date
(Table 2). 

                       Table 2: Metallurgical Samples                       
                                Interval Fe (%) Metallurgical   Mat Lab Head
Sample Type           Drillhole      (m)  (ALS)    Laboratory   Grade (Fe %)
Primary Ironstone       SCD-012     89.6   35.1           SGS           36.1
Detrital Iron     SCD-049 & 050     27.2    n/a           SGS           25.1
Primary Ironstone       SCD-048      109   36.8          CMTL           36.9

SGS Laboratories 
SGS initially assessed a conventional gravity separation method,
using a combination of gravity (heavy liquid or "HL") separation at
coarser sizes together with magnetic separation at finer sizes. For
the primary ironstone, this approach was largely unsuccessful. The
detrital ore exhibited a greater potential for gravitational
upgrading. The HL test work was conducted at a top size of 8 mm, and
individual density fractions reported assays of up to 60% Fe for the
size fractions above approximately 0.5 mm. Overall, the HL test
results showed the potential to produce a concentrate assaying 56.6%
Fe, albeit at a low Fe recovery. 
CMTL Smelting - A raw (non-upgraded) sample with a 36.7% iron head
grade was prepared and smelted in a 50kW electric arc furnace. The
purpose of the smelt test was to establish if the raw samples will be
amenable to smelting and production of hot metal or pig iron. The
test produced a pig iron grading 91.1% iron with a 73% yield and is a
successful proof of concept. These are positive results for a single
smelt test on raw, unbeneficiated material. Phosphorous content
returned from this test was high but the Company anticipates
reduction of phosphorous can be achieved during upgrade to
concentrate or via post-smelting ladle treatment. 
CMTL Beneficiation Roast - CMTL used a solid-state reduction to
reduce fine-grained haematite to magnetite using only a coarse grind
(-4mm +1mm) prior to roasting at less than 1000 degrees C in a rotary
kiln. This process was successful and the internal forces exerted by
the phase transformation from haematite to magnetite induced
self-liberation of the magnetite from the silica. Following
conventional low intensity magnetic separation ("LIMS") using a Davis
Tube, the concentrate grade increased to 50% iron and the iron:silica
ratio increased indicating that silica had been liberated and
Next Steps 
Cardero will continue to investigate metallurgical processes over the
coming months to define improved metallurgical processing techniques.
Immediate work will involve optimizing grind size and rotary kiln
temperature and residence time for the beneficiation roast. It is
likely that the final process will involve an initial coarse grind,
reduction roast, additional grind and magnetic separation. More work
will be required to prove that this technique will produce a saleable
magnetite concentrate. Upgrading of the raw sample to a higher grade
concentrate prior to melting would greatly enhance the potential
economics of producing higher value pig iron at Sheini. Future
smelting work will focus on use of beneficiated roast concentrate as
feedstock to the electric arc furnace instead of raw material. 
Potential Resource Expansion 
Phase I drilling defined an inferred mineral resource over a strike
length of approximately 9 kilometres. Airborne geophysical surveys
carried out during 2012 defined anomalies over an additional strike
length of approximately 24 kilometres and these anomalies were
confirmed to be coincident with iron mineralization by reconnaissance
mapping. Drill targets over this trend will require approximately
18,000 metres of diamond drilling to be tested. No further drilling
is planned until metallurgical testing has been completed and a
viable process route has been confirmed. 
Qualified Person 
Howard Baker B.Sc., M.Sc., MAusIMM (CP) a Principal Geologist (Mining
Geology) with SRK Consulting (UK) Ltd., has acted as the Qualified
Person, as defined in NI 43-101, for the SRK Report and, in
particular, the resource estimate contained therein. Mr. Baker has 18
years practical experience in the mining industry, with the previous
10 years focussed on iron ore mining, exploration and mineral
resource estimation. Mr. Baker worked as a Senior Mine Geologist at
the BHP Billiton, Yarrie Operation in the Pilbara region of Western
Australia and as a Specialist Resource Geologist for Rio Tinto Iron
Ore, also in Pilbara region of Western Australia. Following this, Mr.
Baker has worked a Principal Geologist for SRK on numerous iron ore
deposits including those in West and Central Africa, Sweden, Finland,
Canada, Portugal and Armenia. Mr. Baker has also reviewed and
approved the disclosure in this news release. Both Mr. Baker and SRK
are independent of the Company under NI 43-101. 
The common shares of the Company are currently listed on the Toronto
Stock Exchange (symbol CDU), the NYSE-MKT (symbol CDY) and the
Frankfurt Stock Exchange (symbol CR5). For further details on the
Company readers are referred to the Company's web site
(, Canadian regulatory filings on SEDAR at and United States regulatory filings on EDGAR at 
On Behalf of the Board of Directors of CARDERO RESOURCE CORP. 
Michael Hunter, CEO and President 
Cautionary Note Regarding Forward-Looking Statements 
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements regarding the discovery and
delineation of mineral deposits/resources/reserves, the potential for
the expansion of the current estimated resource at Sheini, the
potential for the reduction of phosphorous during upgrade to
concentrate or via post-smelting ladle treatment; the potential for
the economic exploitation of any of the mineral deposits at Sheini,
the potential for the production of pig iron from Sheini
mineralization, the potential for the Company to define improved
metallurgical processing techniques, the likely makeup of the final
treatment process for Sheini mineralization, the potential to be able
to upgrade raw material to a higher grade concentrate; the potential
for there to be a saleable concentrate or pig iron produced from
Sheini mineralization; business and financing plans and business
trends, are forward-looking statements. Information concerning
mineral resource/reserve estimates may also be deemed to be
forward-looking statements in that it reflects a prediction of the
mineralization that would be encountered if a mineral deposit were
developed and mined. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events.
The Company cautions investors that any forward-looking statements by
the Company are not guarantees of future results or performance, and
that actual results may differ materially from those in
forward-looking statements as a result of various factors, including,
but not limited to, material changes in the assumptions underlying
the maiden inferred resource estimate requ
ired as a result of
changing market conditions or new data, variations in the nature,
quality and quantity of any mineral deposits that may be located,
variations in the market for, and pricing of, any mineral products
the Company may produce or plan to produce, significant increases in
any of the machinery, equipment or supplies required to develop and
operate a mine at Sheini, the failure of appropriate infrastructure
to be available to support the construction of a mine and the
transportation of any product the Company may produce or plan to
produce; a significant change in the availability or cost of the
labor force required to operate a mine at Sheini, significant
increases in the cost of transportation for the Company's products,
the Company's inability to obtain any necessary permits, consents or
authorizations required for its activities, the Company's inability
to produce minerals from its properties successfully or profitably,
to continue its projected growth, to raise the necessary capital or
to be fully able to implement its business strategies, and other
risks and uncertainties disclosed in the Company's 2012 Annual
Information Form filed with certain securities commissions in Canada
and the Company's annual report on Form 40-F filed with the United
States Securities and Exchange Commission (the "SEC"), and other
information released by the Company and filed with the appropriate
regulatory agencies. All of the Company's Canadian public disclosure
filings may be accessed via and its United States
public disclosure filings may be accessed via, and
readers are urged to review these materials, including the technical
reports filed with respect to the Company's mineral properties. 
Cautionary Note Regarding References to Resources and Reserves 
National Instrument 43 101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") is a rule developed by the Canadian Securities
Administrators which establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. Unless otherwise indicated, all resource estimates
contained in or incorporated by reference in this press release have
been reported in accordance with NI 43-101 and the guidelines set out
in the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") Standards on Mineral Resource and Mineral Reserves, adopted by
the CIM Council on November 14, 2004 (the "CIM Standards") as they
may be amended from time to time by the CIM. 
United States shareholders are cautioned that the requirements and
terminology of NI 43-101 and the CIM Standards differ significantly
from the requirements and terminology of the SEC set forth in the
SEC's Industry Guide 7 ("SEC Industry Guide 7"). Accordingly, the
Company's disclosures regarding mineralization may not be comparable
to similar information disclosed by companies subject to SEC Industry
Guide 7. Without limiting the foregoing, while the terms "mineral
resources", "inferred mineral resources", "indicated mineral
resources" and "measured mineral resources" are recognized and
required by NI 43-101 and the CIM Standards, they are not recognized
by the SEC and are not permitted to be used in documents filed with
the SEC by companies subject to SEC Industry Guide 7. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability, and US investors are cautioned not to assume that
all or any part of a mineral resource will ever be converted into
reserves. Further, inferred resources have a great amount of
uncertainty as to their existence and as to whether they can be mined
legally or economically. It cannot be assumed that all or any part of
the inferred resources will ever be upgraded to a higher resource
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility study, except in rare cases. The SEC normally only
permits issuers to report mineralization that does not constitute SEC
Industry Guide 7 compliant "reserves" as in-place tonnage and grade
without reference to unit amounts. In addition, the NI 43-101 and CIM
Standards definition of a "reserve" differs from the definition in
SEC Industry Guide 7. In SEC Industry Guide 7, a mineral reserve is
defined as a part of a mineral deposit which could be economically
and legally extracted or produced at the time the mineral reserve
determination is made, and a "final" or "bankable" feasibility study
is required to report reserves, the three-year historical price is
used in any reserve or cash flow analysis of designated reserves and
the primary environmental analysis or report must be filed with the
appropriate governmental authority. 
This press release is not, and is not to be construed in any way as,
an offer to buy or sell securities in the United States. 
Cardero Resource Corp.
Andrew Muir
Direct Tel: 604 638-3287 
General Contact:
Cardero Resource Corp.
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
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