Cardero Receives Positive Iron Metallurgical Test Work Results, Sheini Hills Iron Project

Cardero Receives Positive Iron Metallurgical Test Work Results, Sheini Hills 
Iron Project 
Confirms Highly-Metallized DRI Product; 81% Metallic Iron at 89%
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/13/13 -- Cardero
Resource Corp. ("Cardero" or the "Company") (TSX:CDU)(NYSE
MKT:CDY)(FRANKFURT:CR5) announces that metallurgical test work on
ironstone from the Sheini Hills Iron deposit in Ghana has produced
positive results. Recent test work at Cardero Materials Testing
Laboratory Ltd., a wholly owned subsidiary of the Company ("CMTL"),
has shown that Sheini ironstone reacts extremely well to a
magnetizing reduction roast process, which reduces iron in the form
of hematite (Fe2O3), to magnetite (Fe3O4), and ultimately to metallic
iron (Feo). 
Sheini iron ore performs well in bench-scale tests, reducing directly
to metallic iron in one step. Box-furnace tests used raw Sheini
ironstone, briquetted with thermal coal, lime, and molasses to
produce Direct Reduced Iron ("DRI") at low temperatures (900 degrees
-1100 degrees Celsius) and with short furnace residence times (less
than 30 minutes). This highly-metallized DRI product is best suited
as a blast furnace ("BF") feed. DRI feed decreases coking coal
consumption and CO2 emissions and increases iron-unit production of
the BF relative to lower-grade magnetite concentrate feeds. 
Testing was completed on Sheini ironstone with a head grade of 46.85%
iron. Composited Davis Tube concentrate returned a grade of 80.98%
metallic iron at 88.65% iron-unit recovery. Total iron (Fe(total)%)
is reported from XRF analysis by ALS Global ("ALS") and metallic iron
(Fe(met)%) is reported from a titration on the same sample by
McCreath Laboratories ("McCreath"). The metallic iron titration
performed by McCreath shows that the total iron in the DRI
concentrate is 80.98% (Table 1). 
Magnetizing Reduction Roast 
The magnetizing reduction roast process produces a highly-metallized
DRI product from Sheini iron ore. In detail: 

1.  The matrix of the ore is sufficiently porous to allow reducing gases (H2
    and CO) given-off by the thermal-coal reductant to easily reach the
    finely disseminated iron oxide grains and reduce the raw hematite to
    metallic iron at fast kinetic reaction rates (less than 30 minutes) and
    low temperatures (900 degrees -1100 degrees Celsius).
2.  These reduction reactions facilitate a change in crystal structure
    creating internal stresses within the ironstone feed, largely
    accommodated at grain boundaries and allowing the iron to become largely
3.  Relatively coarse raw Sheini ironstone feedstock (minus 1/4") can be
    subjected to the magnetizing reduction roast treatment, turning raw
    hematite ironstone into metallic iron in one step. No pre-concentration
    step is required.
4.  The resulting reduced and liberated iron is now in the form of metallic
    iron, and is amenable to conventional low intensity magnetic separation
    following a light grind. 

The resulting product is a highly-metallized DRI product that can be
fed directly to a BF, decreasing coke consumption and CO2 emissions,
while also increasing the productivity of the BF. 

Table 1: Results of certified assays and iron recovery from the reduction 
roasted and composited Davis Tube concentrate and the raw Sheini iron ore 
head feed used in tests.                         
                                                                 Typical DRI
                       Sheini Raw Head         Sheini DRI     Concentrate on
                                 Grade        Concentrate Seaborne Market(i)
Fe(total)%                       46.85  greater than 75.0                  
Fe(met)%                           n/a              80.98              68-90
Fe Recovery %                      n/a              88.65                   
AL2O3%                            2.30               1.39                   
C %                               0.04               1.01            0.2-2.5
CaO %                             0.34               2.09                   
K2O %                            0.092              0.073                   
MgO %                             0.06               0.11                   
Mn %                              0.08              0.038                   
Na2O %                           0.018              0.032                   
P %                              0.187              0.267           0.07-0.1
S %                               0.01               0.91          0.01-0.03
SiO2%                             28.1               10.0                   
TiO2%                             0.14               0.09                   
V %                              0.004              0.009                   

Application to Blast Furnace Feedstock 
A BF typically uses iron ore concentrate that contains 55-65% iron in
the form of hematite or magnetite (in which the contained iron must
still be reduced to metallic iron), with 3-6% silica (SiO2) as gangue
(waste). Reduction of roasted Sheini ironstone (already in the form
of metallic iron) yields iron concentrates grading more than 80% iron
contained as metallic iron, with 10% silica. The silica content in
the Sheini product is deceivingly high because the concentrate has
already been reduced (oxygen has already been removed from the iron
ore). If the Sheini product remained oxidized (e.g. as hematite) it
would have an acceptable silica content of 7.4%. 
By using the highly-metallized reduction roasted Sheini DRI product
as feed, a BF will: 

--  use less coking coal (because the feed is already metallic iron) 
--  emit less CO2 (green-house-gas generated during the reduction process),
--  produce more iron units (because the head feed starts with more iron-

Table 2 summarizes the advantages and disadvantages of feeding Sheini
highly-metallized DRI to a BF. The basis for comparison is a BF feed
of 100% BF-grade standard iron-oxide pellets, versus a BF feed of 70%
BF-grade standard iron oxide pellets + 30% Sheini highly-metallized
DRI. The BF in this analysis does not employ pulverized coal
injection (PCI) or natural gas/oxygen injection for the purpose of
reducing the coke charge. 

Table 2: Advantages and disadvantages of feeding Sheini highly-metallized   
 DRI to a blast furnace.                                                    
ADVANTAGE                              DISADVANTAGE                         
Increased BF Productivity: 28.4%       Slag Increase: 17.7 kg/tonne hot     
Coke Savings: US $29.06/tonne hot      Limestone Addition: US $2.58/tonne   
 metal                                 hot metal                            
CO2 Reduction: 274.2 kg/tonne hot      Phosphorus Removal: US $3.00/tonne   
 metal                                 hot metal                            

The benefits of using a feed containing 30% Sheini highly-metallized
DRI are significant and greatly outweigh any disadvantages. On an
annual basis the benefits to a BF operator could include:  

--  A potential 28.4% increase in productivity for a 1 million tonne per
    annum ("Mtpa") BF is 284,000 tonnes of additional hot metal. At an
    assumed hot metal value of $400/tonne, this translates into $113.6
    million per year. 
--  A potential coke saving of $29 per tonne hot metal for a BF, which with
    increased productivity is now producing 1.284 Mtpa, translates into a
    savings of $37.2 million per year. 
--  A BF normally produces approximately 2,200 kg CO2 per tonne hot metal. A
    reduction of 274.2 kg per tonne hot metal represents a reduction of
    approximately 12.5% in green-house-gas CO2 emissions. 
--  The slag volume increases less than 20kg per tonne hot metal; an
    increase of less than 7.4%. 
--  The limestone penalty of $2.58 per tonne hot metal translates into an
    increase in BF OPEX of $3.3 million/year which is less than 10% of the
    benefit from coke savings. 
--  Removal of phosphorus will likely be required, which is common practice
    at many integrated steel mills. It is expected that the phosphorus
    content would result in a phosphorus penalty similar to the limestone
    penalty, of $3 to $5 million per annum 

DRI Feed to the Blast Furnace 
Feeding direct reduced iron to a BF is a well-established and proven
technology that has been practiced for decades and continues to be
common today due to its quantified positive benefits relative to
lower grade magnetite concentrates. Fienman et al. (1999), describe
the benefits of feeding DRI in great detail in the treatise "Direct
Reduced Iron": 
"As the percentage of DRI pellets was increased to 85% of the burden,
there was an almost linear increase of 75% in the hot metal
production rate. The coke rate decreased about 23 percent for a 30
percent DRI pellet burden. For an 85 percent DRI pellet burden the
decrease in coke rate was only 47 percent." (Fienman et al., 1999)  
The perfect customer-match for the Sheini highly-metallized DRI
product is an integrated steel mill that is "hot metal short." Such a
facility has excess steelmaking capacity and the increase in hot
metal production mitigates this problem. Alternatively, if the
integrated mill is not hot metal short, then the excess hot metal
from the BF can be cast into pig iron offering a secondary merchant
product that would gross about $150 per tonne at current prices
(284,000 tonnes translates to $42.6 million in additional revenues). 
Next Steps 
CMTL is currently in the process of producing a sufficiently large
sample of Sheini highly-metallized DRI using a rotary kiln to
investigate the design of a commercial plant flow sheet. The flow
sheet centers on application of the magnetizing reduction roast
process for producing a high-grade, high iron-unit recovery,
highly-metallized DRI product that is best-suited for value-added
downstream applications. CMTL also plans to run smelting tests on the
Sheini DRI to demonstrate the production of pig iron from Sheini DRI. 
Cardero's technology effectively utilizes the volatile matter
contained in the coal as a fuel for the pre-reduction process step
thereby minimizing the need for additional energy (natural gas) for
production of the highly-metallized DRI. 
Furthermore, the test work reported in this release has utilized
thermal coal as a reductant; additional testing in progress at CMTL
utilizes grass as a reductant with favorable results. Using grass
could prove to be significant in both cutting operating costs, and in
decreasing the carbon footprint of the project. Perennial elephant
grass is plentiful and available on-site at Sheini for use as a
renewable-energy source, and as a suitable renewable-reductant
alternative to thermal coal. Sheini becomes enveloped annually by
elephant grass which is controlled by regular burning, thus releasing
CO2 into the atmosphere. If the grass were instead harvested and
burned as an energy source and reductant to make DRI from Sheini
ironstone, the magnetizing reduction roast process could have a near
zero or even negative carbon footprint. 
About the Sheini Hills Iron Deposit 
The Sheini Hills iron deposit is located in northeastern Ghana,
Africa approximately 400 kilometers north of Accra and 170 kilometers
east of Tamale. 
A maiden Mineral Resource Estimate was completed in January, 2013 for
the Sheini deposit by SRK Consulting (UK) Limited ("SRK"), in which
SRK reported a total Inferred Mineral Resource of 1.312 billion
tonnes with mean grade of 33.8% iron. The resource at Sheini consists
of two types of ore, being (a) Ironstone (1.045 billion tonnes @
35.2% iron), and (b) Detrital (266.9 million tonnes @ 28.2% iron). 
The inferred mineral resource was largely calculated from the 11,400
metre diamond drill core and reverse circulation drilling program
that was completed over a strike length of approximately 9 kilometres
during 2012. An additional 24 kilometres of strike length has been
identified for future drilling following extensive airborne
geophysical surveying, analysis of satellite imagery and mapping to
confirm the occurrence of ironstone in the area. 
For details with respect to the assumptions underlying the current
resource estimate, see the technical report entitled "Mineral
Resource Estimate for the Sheini Hills Iron Project, Ghana" dated
January 6, 2013 and available under the Company's profile at  
Qualified Person 
Mr. Glen Hoffman, MMSA QP, the President & CEO of Cardero Iron Ore
Company Ltd. and a qualified person as defined by National Instrument
43-101, has supervised the preparation of the scientific and
technical information that forms the basis for this news release,
other than with respect to the Sheini Hills mineral resource
estimate, and has approved the disclosure herein. Mr. Hoffman is not
independent of the Company as he is an officer of a subsidiary and
holds common shares and incentive stock options in Cardero. 
Howard Baker B.Sc., M.Sc., MAusIMM (CP) a Principal Geologist (Mining
Geology) with SRK, has acted as the Qualified Person, as defined in
NI 43-101, for the resource estimate contained herein. 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 metallurgical test work carried out at CMTL was designed and
directly observed on site by Mr. Hoffman who is responsible for all
metallurgical testing and the quality control/quality assurance. 
The work program at CMTL is supervised by Glenn Hoffman, S. Jayson
Ripke (Cardero Iron Ore) and Christopher White (Cardero Resource
Corp.), who, together, are responsible for all aspects of the work,
including the quality assurance/quality control program. On-site
personnel at the laboratory perform bench-scale testing to strict
protocol, rigorously collecting and tracking samples which are
prepared, security sealed, and shipped to a variety of accredited and
ISO certified laboratories for additional sample preparation and
analysis. Quality control is assured by the use of international and
in-house standards. The specific laboratories used for the analyses
reported in this news release are ALS Global in Reno, Nevada, and
Andrew S. McCreath & Son, Inc. in Harrisburg, Pennsylvania. ALS's
quality system complies with the requirements for the International
Standards ISO 9001:2000 and ISO 17025: 1999. Andrew S. McCreath &
Son, Inc. is accredited to ISO 17025 by the American Association of
Laboratory Accreditation (A2LA) as a commercial chemical laboratory. 
Total iron was measured by ALS Global through x-ray fluorescence
(XRF) analysis. In XRF analysis a material is bombarded with gamma
rays causing inner orbital electrons of an atom to be expelled and
outer orbital electrons to fill, or fall into the empty spaces. As
this happens energy is released and can be measured to determine the
elemental make-up of the material. Metallic iron was measured by
Andrew S. McCreath & Son, Inc. through metallic iron titration. In a
titration a reagent or "titrant" is prepared in solution and reacted
with a solution of the "titrand," or analyte in question to determine
the concentration of the analyte. 
About Cardero Resource Corp. 
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. 
Hendrik van Alphen, 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, other than statements of
historical fact, included herein including, without limitation,
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 economic
exploitation of any of the mineral deposits at Sheini, the potential
for bench-scale test results to be replicated in larger scale testing
and in any commercial process, the potential for the use of Sheini
DRI to reduce costs and increase production in an BF, the potential
for the use of Sheini DRI to provide significant benefits to BF
operators, including reduced costs and increased production, the
potential for the utilization of elephant or other grass at Sheini as
part of the procession of Sheini mineralization, 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, 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 required 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
604 638-3287 
Cardero Resource Corp.
General Contact
604 408-7488 or Toll Free: 1-888-770-7488
604 408-7499 (FAX)
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