Corporate Presentation - Cardero Resource Corp.

Zonia
January 2016
Zonia Copper Oxide Deposit
Resource Extraction and Renewable Energy Project
Arizona, USA
Forward Looking & Cautionary Statements
This presentation 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 any potential increase in shareholder value through the acquisition of undervalued precious metal deposits for development, joint
venture or later disposition, the potential to partner with mine developers to achieve production at any of the Company’s properties (existing or future); the
potential for the capital costs associated with any of the Company’s existing or future properties to be low; the potential for the Company to outline
resources at any of its existing or future properties, or to be able to increase any such resources in the future; concerning the economic outlook for the mining
industry and the Company’s expectations regarding metal prices and production and the appropriate time to acquire precious metal projects, the liquidity
and capital resources and planned expenditures by the Company, the completion of the acquisition of the Yanamina project; the anticipated content,
commencement, timing and cost of exploration programs, anticipated exploration program results and the anticipated business plans and timing of future
activities of the Company, are forward-looking statements. Forward-looking statements are based on a number of assumptions which may prove incorrect,
including, but not limited to, assumptions about the level and volatility of the price of gold; the timing of the receipt of regulatory and governmental
approvals; permits and authorizations necessary to implement and carry on the Company’s planned exploration programs at its properties; future economic
and market conditions; the Company’s ability to attract and retain key staff; and the ongoing relations of the Company with its underlying lessors, local
communities and applicable regulatory agencies.
Accordingly, the Company cautions that any forward-looking statements are not guarantees of future results or performance, and that actual results may
differ, and such differences may be material, from those set out in the forward-looking statements as a result of, among other factors, variations in the
nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or
authorizations required for its activities, material adverse changes in economic and market conditions, changes in the regulatory environment and other
government actions, fluctuations in commodity prices and exchange rates, the inability of the Company to raise the necessary capital for its ongoing
operations, and business and operational risks normal in the mineral exploration, development and mining industries, as well as the risks and uncertainties
disclosed in the Company’s most recent management discussion and analysis filed with various provincial securities commissions in Canada, available at
www.sedar.com. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law. All subsequent written or
oral forward-looking statements attributable to the Company or any person acting on its behalf are qualified by the cautionary statements herein.
John Drobe, P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this
presentation and has approved the disclosure herein. John Drobe is not independent of the Company, as he holds common shares of the Company.
2
Project Location in Central Arizona
 Arizona responsible for 65% of US copper
production
 $4.87 billion impact on state economy
 51,200 mining-related jobs annually
VMS
Porphyries
Past-producers
and undeveloped
Active mines
Private and
Public Land
ZONIA
Zonia Project Location
Permitting Advantage: Resource and Phase I production
Contained within 100%-owned private land.
3
Past-producers
and undeveloped
Active mines
43-101 Resource Estimate
 Measured and Indicated Resources of 76.8 million short tons grading 0.33% copper containing
510 million pounds of copper (0.2% copper cut-off grade).
 Inferred Resources of 27.2 million short tons grading 0.28% copper containing 154.6 million
pounds of copper (0.2% copper cut-off grade).
 Low strip ratio of 1:1 waste to mineralized material in base case.
Classification
Measured
Indicated
Measured & Indicated
Inferred
Cut-Off
Grade
(% Cu)
0.25
0.20
0.15
Strip
Ratio
1.96
1.01
0.52
Cut-Off Grade
(% Cu)
0.2
0.2
0.2
0.2
Short Tons
(x ‘000)
15,400
61,400
76,800
27,200
Measured & Indicated
Short Tons
Copper
Contained Copper
(x ‘000)
(%)
(M lbs)
54,500
0.43
312.6
76,800
0.33
510.0
96,200
0.30
578.6
Copper
(%)
0.42
0.31
0.33
0.28
Short Tons
(x ‘000)
16,200
27,200
41,600
Contained
Copper (M lbs)
129.3
380.6
510.0
154.6
Inferred
Copper
(%)
0.37
0.28
0.25
Contained Copper
(M lbs)
63.2
154.6
205.5
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty
that all or any part of the Mineral Resources will be converted into Mineral Reserves. Inferred resources have a
great deal of uncertainty as to their existence and whether they can be mined economically. It cannot be assumed
that any part of the Inferred resource will ever be upgraded to Measured or Indicated categories.
4
43-101 Resource Estimate
Resources are stated within a LerchGrossman optimized pit shell using
the following parameters:
Input
Mining Cost
Process Cost
G&A
Recovery Oxide
Recovery Transition
Recovery Primary Sulfide
Pit Slope
Cu Price
Value
$1.50/t
$3.40/t
$0.45/t
73%
70%
0%
45°
$2.50/lb
Looking North
500 metres
5
Zonia Acquisition Terms
Date
Cash (US$)
Cardero Shares
Initial Payment
$25,000 (paid)
-
August 30, 2015
$26,350 (paid)
-
October 15, 2015
$150,000 (paid)
1,000,000 (issued)
January 31, 2016
$75,000 (paid)
1,500,000 (issued)
July 31, 2016
$75,000
-
January 31, 2017
$450,000
2,500,000
July 31, 2017
$450,000
2,500,000
October 31, 2017
$973,650
4,000,000
October 31, 2018
-
5,000,000
Total
$2,225,000
16,500,000
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 Option to acquire a 100% interest in
the Zonia copper oxide deposit over
3.5 years
 Total consideration is US$2,225,000
($276,350 paid) and 16,500,000
common shares of Cardero Resource
Corp. (2,500,000 issued)
 No work commitments
Project History & Existing Infrastructure
 17.1 million tons mined from 1966 to 1975;
produced 33.2 million pounds of cement
copper from the 7.1 million tons placed on
heaps
 60,000 meters of historical drilling in 700
drill holes, mostly defining near-surface
oxide resource
 The drill holes were not assayed for gold,
silver or other base metals such as zinc
Recently upgraded substation close to mine entrance
 Existing power via a 67Kv line starting at a
recently upgraded substation near mine
entrance (7.5km). Power line will need
upgrading to 1.5MW for production
 Sufficient groundwater available on site to
support mining operations
Mine entrance gate
7
Mine Site
1.
2.
3.
4.
1. Leach pad from former production. 2. Mine site and buildings.
3. Signage at entrance to mine site. 4. Zonia mine site was pre-stripped in 1967.
8
Copper Mineralization
Drill RRC09-27 grading 11.12% Cu over 8.5 feet . Supergene
chalcocite, copper pitch oxide rim, malachite, chrysocolla.
Drill RRC09-27; further oxidation of chalcocite to cuprite,
copper “pitch” and malachite.
Outcropping mineralization in pit.
Drill RRC09-X08 from an interval grading 0.33% Copper.
Malachite and azurite mineralization and minor sulfides.
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Cross Section Through Centre of Deposit
10
Mining and Processing
 Deposit amenable to conventional truck &
shovel mining, heap leaching and SX-EW
processing
 Soluble copper mineralization allows for
low-cost heap-leaching and & SX-EW
processing to produce 99.99% pure copper
cathode
 Extensive metallurgical test-work averages
73% recovery
 Low acid consumption of 25 lbs/ton
Stage I Solvent Extraction (SX): extraction
& upgrade of copper ions from low-grade
acidic leachate (liquor) from heap.
Stage II Electro-winning (EW): Copper
extracted from the electrolyte &
deposited onto cathodes
11
Phase I Permitting Status
Phase I permitting, restricted to private
land, has reduced permitting requirements
compared to an application on public
lands. Main permits required:
 Aquifer Protection Permit – previous
application submitted in 2012 and
renewed application will benefit from
comments made during review
 Water Quality Certification (Section 401)
 Air Quality Permit
 Pollutant Discharge Elimination System
 Dredge and Fill permit (Section 404)
 Landfill / Solid Waste Disposal
 Dam Safety permit
 Surface Water Appropriation Permit
 Reclamation Plan
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Retaining dam & pond with sump pump, French Gulch looking north
Solar Energy Potential for Zonia
 Appropriate location for


Zonia Deposit



Photovoltaic Solar Resource: Flat Plate Tilted at Latitude (US Govt. data, published 2008)
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effective solar energy project
Renewable energy to reduce
operating costs and a greener
legacy on mine closure
Construction would be on BLM
(public) land die to space
constraints on private land
Renewable energy should be a
positive for permitting
EPA currently promoting RE
projects on contaminated
lands, landfills and mine sites
EPA offering streamlined
permitting and zoning as well
as tax incentives
Renewable Energy Case Study: Sullivan Mine Site, BC
 Solar facility built on former site of
reclaimed Sullivan Mine Concentrator,
Kimberly, BC.
 1.05MW grid-connected facility.
 4,032 solar-cell modules built on 96
trackers (38% more efficient than
static).
 300 days of sunshine per year (most in
British Columbia).
 Community-owned project. Teck
provided the land and $2M cash.
 Total project cost was $5.2M with 20year payback.
 After 90-years of mine production, a
finite base metal resource was
replaced by infinite solar energy
project.
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Future Development Options
OPTION I: Care & Maintenance
- 2016  Maintain property in good standing.
No work commitments within the
option agreement
 Complete Preliminary Economic
Assessment Q2 2016
OPTION II: Seek Finance & Move Forward
- 2016 to 2018  Seek project finance through to receipt
of mine permit
 Complete Preliminary Economic
Assessment
 Drill to upgrade Inferred Resources
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 Begin in-house Feasibility-level tradeoff studies and detailed engineering to
the extent possible
 Complete Bankable Feasibility Study and
detailed engineering
 Monitor resource-sector market
conditions
 Proceed through mine permitting
process
Move Forward Project Schedule
*
Hypothetical, dependent on positive results of the future PEA; Phase I Bankable Feasibility will maximize the rate of
production attainable while limiting facilities to private land
^
Phase I permitting is estimated at 2.5 years.
**
Phase II permitting involves expansion onto public land and as such the permitting time is less well constrained. It is estimated
at 4 to 7 years, with 7.5 years allowed for in the project schedule.
^^
Phase II production time is unknown and additional life of mine is for illustrative purposes only.
The company will need to raise additional finance in order to move the Zonia project forward
and there can be no assurance that it will be successful in doing so. If the Company is not
successful in raising funds it may be forced to curtail or cease operations.
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Management
Henk van Alphen, President, CEO, Director
John Drobe, Chief Geologist
• Mining executive with 35 years experience.
• Founder of Pacific Rim and Cardero Resource Corp; long
history of project spin-outs and value-creation with early
involvement in Trevali Mining, ITH Mines, Balmoral Resources
and others.
• Track record in converting projects to investor returns.
• Highly experienced in South America (Peru and Argentina).
• Acquired Peru iron deposit for $0.5M and sold for $100M
cash.
• Henk is currently President & CEO of Cardero Resource Corp,
Wealth Minerals and a director at Indico Resources and Ethos
Gold Corp.
• 25+ years specializing in porphyry copper-gold, epithermal
and skarn deposits throughout the Americas
• John is currently also COO of Indico Resources Inc., which is
developing the Irmin copper oxide project in Arequipa, Peru.
• Former Chief Geologist for Corriente Resources responsible
for exploration and resource definition at Mirador, Panantza,
and San Carlos porphyry copper deposits. Corriente sold for
CAD$679 million cash in 2010
Keith Henderson, Vice President
Robert van Doorn, Director
• 23 years' experience throughout Africa, Europe, and North
and South America.
• Educated in Europe (B.Sc. (Hons) and M.Sc. in geology).
• Worked with Anglo American Exploration in Europe and North
America.
• Joined Cardero in 2007 with critical role in advancing the
Pampa de Pongo through to ultimate sale for US$100 M.
• Keith is currently Vice President at Cardero Resource Corp.,
CEO at Centenera Mining, and a director at Desert Star
Resources, Black Sea Copper & Gold, and Remo Resources.
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Len Harris, Director
• Metallurgist with more than 50 years experience in S America
• Former Director of Newmont South America responsible for
commissioning the Yanacocha Mine
• Executive Chairman of Namakwa Uranium, formerly Chairman
of Mundoro Mining and Exec VP of Rio Narcea Gold Mines
• Career includes positions as senior mining analyst for several
senior investment banks
• Former Director of Romarco Minerals (sold)
Stephan Fitch, Director
• Managing Director of London-based IAG Holdings.
• 27 years’ experience corporate finance / investment banking,
primarily start-up and venture capital.