CARDERO RESOURCE CORP. TSX-V: CDU FSX: CR5

Transcription

1 CARDERO RESOURCE CORP. TSX-V: CDU FSX: CR5

2 CARDERO RESOURCE CORP. Disclaimer Except for historical information contained in the presentation to be made, there are matters discussed here that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Litigation Reform Act of Although Cardero Resource Corp. believes that the expectations reflected in such forward-looking statements are reasonable at this time, no assurance can be given that such expectations will prove to have been correct. These statements, including those given during the question and answer part of this presentation, are therefore only predictions and actual events or results may differ materially. You are cautioned not to place undue reliance on such forward-looking statements. Cardero Resource Corp. does not undertake any obligation to update publicly any forward-looking statements discussed in this presentation, whether as a result of new information, future events or otherwise.

3 CARDERO RESOURCE CORP. A junior mineral exploration company focused on precious metal and iron - oxide copper - gold projects in Latin America and Mexico. Cardero s mineral focus includes: Copper Gold Silver Iron

4 OVERVIEW Founded in 1999, Cardero has rapidly expanded into a substantial land holder with an extensive network of strategic financial, mining, and government relationships as exemplified by: $19.5 million cash in treasury (equivalent to $0.48/share) Shares Issued & Outstanding: 40,382,339 Shares Fully Diluted: 47,225,219 Shareholder base 30% institutional & 17% insiders Cardero holds, or has rights to acquire, 100% interests in 19 properties, totalling over 350,000 Ha, in Argentina, Mexico and Peru Joint venture with Anglo American plc in Baja California Norte, Mexico Negotiating to acquire additional properties, including currently producing mine

5 WARRANTS & OPTIONS WARRANTS Date : March 17, 2005 Participants : 2 Funds Price : $3.25 Number : 3,065,380 Gross Proceeds : $9,904,205 OPTIONS Price Range : $ $3.25 Number : 3,777,500 Gross Proceeds : $10,019,375

6 WHY MEXICO & LATIN AMERICA Mexico and Latin America represent two vastly under-explored regions of known productive permissive geology Pro-mining governments proactively seeking foreign investment Low Risk legal / fiscal & political Excellent infrastructure Low production costs

7 CORPORATE STRATEGY REDUCE COMMERICAL & TECHNICAL RISK Multi-commodity spread, multi-deposit, geographical focus Highly focussed aggressively identify & accumulate worldclass, G.O.D. potential property portfolio Clear project exit points early JV properties unlikely to meet our hurdle rates leverage exploration dollars & focus technical assets Become Partner of Choice

8 CORPORATE STRATEGY WHY? Large mining companies are under pressure to acquire large tonnage, world-class mineral deposits Large producers depend on smaller, more agile, companies such as Cardero to locate and deliver projects HOW? Build High Quality Project Pipeline OUR PEOPLE Commercial & Technical Expertise

9 DELIVERING SHAREHOLDER VALUE Large mining companies are under pressure to acquire large tonnage, world-class mineral deposits CVRD, BHP and Rio Tinto, the largest three iron ore producers, have signed long term supply contracts with Chinese steel companies Large producers depend on smaller, more agile, companies such as Cardero to locate and deliver projects Cardero s goal is to identify and accumulate as many worldclass potential projects as possible

10 IOCG & IRON ORE BACKGROUND

11 Iron Oxide Copper Gold Iron Oxide Copper-Gold (IOCG) deposits represent attractive exploration targets due to their potential for high grades and enormous size Vary from sulphide-poor (Kiruna, Marcona, Pampa de Pongo, Chilean Iron Belt) to sulphide-rich (Olympic Dam, Salobo, Candelaria, Ernest Henry) Both IOCG-types are viable economic targets The Olympic Dam deposit (Australia) is the largest IOCG deposit discovered to date global ranking #. 5 Cu, #. 1 U. Roughly translates to an in-situ 30 million tonnes of copper (66 billion pounds) and 36 million ounces of gold WMC Olympic Dam after tax profit of $246 million in 2003

12 Iron Oxide Copper Gold DEPOSITS Olympic Dam (Australia) The most important examples IOCG Deposits RESOURCE GRADE (Mt) Cu (%) Au(g/t) Salobo (Brazil) Sossego (Brazil) Candelaria (Chile) Punta Del Cobre (Chile) Mantoverde (Chile) Ernest Henry (Aus) Note: Resource data from variety of sources and/or publications please consider as inferred only.

13 GLOBAL IRON ORE Global consumption of iron ore will increase by 16% to 1,299 m/t in 2004, up from 1,083 m/t in 2000 China has led the way with a 37.18% increase of consumption over that period with the rest of Asia (excluding Japan) increasing by 16.6% North American has decreased its consumption by 15% and Europe has increased by a nominal amount of less than 1% Europe increased its imports of iron ore by 10% while North America saw a decrease of 2.86% Global imports of iron ore have increased by 31.4% between 1999 and 2004 Asia and Oceania has led the way with an increase of 42.37%

14 IRON ORE: MARKET LEADERS CVRD, Rio Tinto and BHP: 42% of world Iron Ore production CVRD, Rio Tinto and BHP: effectively increased their dominance of global seaborne trade to 75% (representing 280 m/t) in 2003, up from 50% in 1999 CVRD s ferrous metals division generated gross revenue of US$1.42B, representing 70% of total revenue Rio Tinto first half 2004 adjusted earnings of US$993M were US$352M (or 55%) above the same period 2003 BHP year end 2004 EBITDA (excluding exceptional items) was up 40% to US$7.5B and EBIT up 57.7% to US$5.5B Anglo American expanding into iron ore market with acquisition of 67% of Kumba Resources, the worlds 4 th largest sea-borne exporter of iron ore

15 COMMODITY PRICE COMPARISON 1 year ago 5 years ago Commodity Nov. 15, 2004 price % change price % change Iron Ore* $59.10 $ % $ % Copper $ $ % $ % Nickel $ $ % $ % Aluminum $ $ % $ % Lead $ $ % $ % Zinc $ $ % $ % Gold $ $ % $ % Silver $7.53 $ % $ % * Iron ore prices quoted Japan Market Prices for CVRD BF Pellets All commodity numbers as at November 15, 2004 (Kitco)

16 IOCG PROPERTY DISTRIBUTION CARDERO PROPERTY DISTRIBUTION

17 Mexico

18 MEXICO - ALISITOS PROJECT OWNERSHIP: Anglo American right to earn 70% upon expenditure of US$3.7 million SIZE: TARGET: PROGRAM: 200,000 Ha World Class / Tier 1 IOCG Mineralization Surface Mapping & Sampling Airborne and Ground Geophysics Diamond Drilling OPERATOR: Anglo American plc

19 MAIN MEXICO ALISITOS - PROJECT LOCATIONS TARGET MEXICO - PROPERTY LOCATIONS SAN DIEGO 33 TIJUANA MEXICALI U.S.A. U. S. A. ENSENADA Hermosillo BAJA Cabo San Quintin CALIFORNIA MAIN ALISITOS PROPERTY PACIFIC MEXICO GULF OF MEXICO EL ROSARIO OCEAN Mexico City 116 CATAVIÑA Bahia San Luis Gonzaga NORTE KILOMETRES Cardero Project Cardero / Anglo American JV San Francisquito 28 00' GUERRERO NEGRO

20 Santa Mar ia Santa Jo sef i na Ursus El Coche La Sir ena Baja California Norte Exploration Update Anglo JV Claims Geological compilation 1:250K, various sources & eras ANGLO AMERICAN Mineral Occurrence Database Consejo, Literature & Unpublished thesis Geophysics Aeromagnetics purchased and processed. Mineral Claims AAEC RTZ 3rd party claims Geology Cenozoic Cretaceous - batholith Gabbro Lower Cretaceous Alisitos Formation Proterozoic to upper Paleozoic metamorphic rocks Geochemistry Consejo regional stream database purchased (31 San Fernando element) LandSat Remote Sensing alteration analysis +/- structural interpretation. 100 km Total of 31 target areas highlighted

21 Scale 1: metres NAD27 / UTM zone 11N PROJECT: Baja IOCG PROSPECT: Regional Stream Sediment Geochemistry - Main Block Sample Type: Stream Sediment Size Fraction: -230 mesh (< 63 microns) Laboratory: Method/Digestion: / Sample Weight: Created by: MDC/SC Date: Feb Cu_ppm_1FMS C:\2003 Projects\Baja California IOCG\Geosoft - Stream sediment geochemistry - final 2003 version\bcn_geosoft_feb04\mainblock_cu_ppm_1fms_sy.map <50% 75% 87% 93% 98% > 98% Kurtosis Skewness StdErr StdDev Mode Median GeoMean Mean Max Min Samples Statistics < > % 90% 70% 50% 30% 10% 2% Baja California Norte Exploration Update ANGLO AMERICAN GEOCHEMISTRY San Fernando Picale Amargosa Encanto FZ Anglo American Exploration (Canada) Ltd. Cu_ppm_1FMS (DL:0.01)

22 Baja California Norte Exploration Update ANGLO AMERICAN High Resolution Airborne Magnetic & Radiometric Survey 7,500 line km Numerous structural geophysical anomalies.

23 SAN FERNANDO TARGET

24 Baja California Norte Exploration Update ANGLO AMERICAN PROPERTIES SAN FERNANDO El GATO Mapping delineates robust, well defined / zoned, IOCG multiphase hydrothermal system (Na to E, K to W, overprinted by later Ca alteration). Numerous productive structural & replacive occurrences relatively modest, Eg. San Fernando 600m N-S FZ to approx m depth relatively high grade dump material Avr. - 1% Cu & 0.5 g/t Au individual higher grade stockpiles return values in the order of 5 10% Cu and up to 1 g/t Au. Extensive alkali-feldspar alteration. Geophysics core of hydrothermal system correlates with 3.5-4km E-W by 1.5 2km N-S high susceptibility magnetic anomaly and co-incident 3km E-W by 2.5km N-S gravity anomaly. 3D modeling encouraging.

25 ALISITOS PROJECT SAN FERNANDO TARGET 1 km E W Section through 3D modeled magnetic body

26 View NE: Gravity draped on DEM, modeled 3D body below San Fernando

27 Water within 20m of surface made 50,000 gallons / day MINA SAN FERNANDO 1769 Mission. View NE: Highest MS body 1800s French Company worked it shipped to Europe. Late 1800 English Company ore shipped to Wales. San Fernando Mine 1900s 1910: 50 Ton smelter built on site ceased production due to Revolution. Reportedly stopped in 15 feet of massive chalcopyrite mineralization (Unsubstantiated) Inglesa Shaft systematic channel sample returns 2.26%Cu. (Unsubstantiated) Main shaft to m with 800ms drifting on 6 levels. El Gato 2 connected shafts 25m deep. Walls at bottom of shaft returned 2.08% Cu. (Unsubstantiated)

28 Over 25,000 Ha GOLD PROPERTIES

29 Peru

30 75 70 PERU HOLDINGS PERU - PROJECT LOCATIONS PERU PROPERTY LOCATIONS C R LIMA 250 km Nazca 80 QUITO Equator Cuenca Iquitos 5 Piura Chiclayo Cajamarca Trujillo Pucallpa Cardero Projects Mine 0 10 Mina Justa Marcona San Nicolas San Juan PAMPA DE PONGO Acari Cobrepampa Callao LIMA Huarás P E R U Cerro de Pasco Ica Huancayo Chala Cuzco Arequipa La Paz KILOMETRES Pampa de Pongo 0 KILOMETRES 500 Arica

31 PERU - PAMPA DE PONGO Ownership: Size: Resource: Program: Target: 100% CARDERO 8,000 Ha 1 billion 75% magnetite* + anomalous copper gold *Rio Tinto 11 DDH program in progress expand both resource and grade

32 PAMPA DE PONGO PROPERTY DDH #04

33 Argentina

34 PRECIOUS METAL PROPERTIES Three properties Over 25,000 Ha

35 Cardero Board of Directors G. Ross Mc Donald, CA Len Harris Ken Carter Tony Fitzelle Larry Talbot Henk Van Alphen President & CEO Acquisitions Carlos Ballon Dr. David Shaw Lorne Hunter Vice President Exploration Dr. Mark Cruise Investor Relations Quentin Mai ARGENTINA Dr. Carlos Ramos Angus Innes P.Geo Hector Vittone PERU Gary Belik P. Geo Ewal MEXICO Jim Dawson P. Eng Miguel Barahona Dr. Jan Helsen P.Geo

36 INVESTMENT CONSIDERATIONS Balanced multi-commodity focus (gold, silver, copper and iron) for a variety of deposit- types in productive districts. Focus on exploration for world-class, Tier 1, deposit types in both grass-roots and brown-field settings. Cardero s goal over the past four years has been to identify and acquire world-class potential projects and systematically explore these to create value. Ideally located - Cardero s IOCG properties in Baja California Norte, Mexico and Peru are near the coast for ease of shipping to Asian markets. Cardero is one of the largest land holders with potential for IOCG discovery in the Americas. Unprecedented increases in demand for iron ore and copper from China and India are causing considerable upward pricing pressure. Major steel companies have announced an aggregate 20% increase in the price of iron ore in 2004.