Cardero completes acquisition of historic Arizona copper mine
Cardero Resource Corp. (TSXV: CDU) announced today that it has completed the acquisition of an undivided 100% interest in the Zonia copper deposit, originally owned by Redstone Resources Corp.
The Zonia Copper Oxide Project, located in central Arizona, has been held under private ownership for almost 100 years and has undergone comprehensive exploration, metallurgical studies and mine development planning.
Cardero was granted the right to acquire up to a 100% interest in the property in consideration of the aggregate cash payment of $2.4 million and issuance of an aggregate of 16.5 million common shares over a three-year period
According to Cadero, the majority of the mineralized area was pre-stripped during previous open-pit mining operations in 1966, as 17 million tonnes were mined with 7 million tonnes stacked on heap leach pads, producing cement copper up till 1975. The property has been drill-tested with almost 700 drill holes (60,000 meters), a high-density drilling that covers 30% of the area and defines the current resource estimate.
Measured and Indicated Resources have been estimated in 76.8 million short tonnes grading 0.33% copper containing 510 million pounds of copper (0.2% copper cut-off grade). Inferred Resources, on the other hand, have been estimated in 27.2 million short tonnes grading 0.28% copper containing 154.6 million pounds of copper (0.2% copper cut-off grade).
Cardero was granted the right to acquire up to a 100% interest in the property in consideration of, among other things, the aggregate cash payment of $2.4 million and issuance of an aggregate of 16.5 million common shares over a three-year period.
Under the terms of an installment plan, the buyer will make five equal installments of $126,060 commencing on November 6, 2018, and ending March 31, 2018, for a total payment of $630,300 and a final cash payment of $573,650.
Once full payments are made, Redstone will begin the transfer of the asset to a wholly-owned subsidiary of Cardero, a process that is expected to be complete within 12 weeks.
"Completing the acquisition of Zonia is a significant milestone for Cardero,” said Stuart Ross, President and CEO of the Vancouver-based company. “The company has planned and permitted an 18-hole drill program that will test an anomaly northeast of the existing ore body,” he added.