Z Onia C Opper Project
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Preliminary Economic Assessment, NI 43-101 Technical Report Zonia Copper Project Yavapai County, Arizona, USA Prepared for: Prepared by: Effective Date: Qualified Persons: March 22, 2018 Terre Lane, MMSA 01407QP Issued Date: Todd Harvey, SME-RM 4144120 April 17, 2018 Rex Bryan, SME-RM 411340 Zonia Copper Project Global Resource Engineering | 600 Grant St. #975 | Denver, Colorado 80203 USA Date and Signature Page This Technical Report on the Zonia Copper Project is submitted to Cardero Resource Corp. and is effective March 22, 2018. The Qualified Persons and Responsible Report Sections follow: Qualified Person Responsible for Report Sections Parts of 1, 2, 3, 14, 24, 25, 26, and 27 Dr. Rex Bryan All of 7, 8, 9, 10, 11, 12, and 23 Parts of 1, 2, 3, 14, 18, 19, 21, 22, 24, 25, 26, and 27 Terre Lane All of 4, 5, 6, 15, 16, and 20 Parts of 1, 2, 3, 18, 19, 21, 22, 24, 25, 26, and 27 Dr. Todd Harvey All of 13 and 17 (Signed) “Rex Bryan” 3/22/2018 Signature Dr. Rex Bryan Date (Signed) _”Terre Lane” 3/22/2018 Signature Terre Lane Date (Signed) _”Todd Harvey” 3/22/2018 Signature Dr. Todd Harvey Date Zonia Copper Project Page ii Cardero Resource Corp. Project No. 17-1165 TABLE OF CONTENTS 1.0 SUMMARY ........................................................................................................................................ 14 1.1 Location, Property Description, and History ........................................................................... 14 1.2 Historical Drilling ..................................................................................................................... 14 1.3 Geology and Mineralization .................................................................................................... 15 1.4 2008-2010 Exploration Drilling Program................................................................................. 15 1.5 Resource Estimation ............................................................................................................... 16 1.6 Metallurgical Test Work .......................................................................................................... 17 1.7 Recovery Methods .................................................................................................................. 18 1.8 Mining Methods and Economics ............................................................................................. 19 2.0 INTRODUCTION ................................................................................................................................ 22 2.1 Scope of Work ......................................................................................................................... 22 2.2 Qualified Persons .................................................................................................................... 22 2.3 Sources of Information ........................................................................................................... 23 2.4 Units ........................................................................................................................................ 24 3.0 RELIANCE ON OTHER EXPERTS ......................................................................................................... 25 4.0 PROPERTY DESCRIPTION AND LOCATION ........................................................................................ 26 4.1 Location ................................................................................................................................... 26 4.2 Area of the Property, Mineral Tenure, Title ........................................................................... 26 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ................ 29 5.1 Accessibility ............................................................................................................................. 29 5.2 Climate and Physiography ....................................................................................................... 29 5.3 Local Resources and Infrastructure ........................................................................................ 29 6.0 HISTORY ............................................................................................................................................ 30 6.1 Property History ...................................................................................................................... 30 6.2 Historical Drilling ..................................................................................................................... 33 6.3 Verification of Historical Data ................................................................................................. 34 6.4 Historical Mining ..................................................................................................................... 36 6.5 Historical Resource and Reserve Estimates ............................................................................ 37 6.5.1 Western States Engineering (1995) ........................................................................................ 37 6.5.2 Mintec (2001) .......................................................................................................................... 37 6.5.3 Scott Wilson RPA (2006) ......................................................................................................... 37 3/22/2018 Zonia Copper Project Page iii Cardero Resource Corp. Project No. 17-1165 6.5.4 Tetra Tech Mineral Resource Estimate and PEA (2011) ......................................................... 38 6.6 Historical Metallurgy and Process Engineering ...................................................................... 39 6.7 Historical Feasibility Studies.................................................................................................... 39 7.0 GEOLOGIC SETTING AND MINERALIZATION ..................................................................................... 41 7.1 Regional Geologic Setting ....................................................................................................... 41 7.2 Local and Property Scale Geology ........................................................................................... 45 7.2.1 Geological Units ...................................................................................................................... 45 7.2.2 Structure ................................................................................................................................. 52 7.3 Mineralization ......................................................................................................................... 53 7.3.1 Historical Mined Mineralization .............................................................................................. 54 8.0 DEPOSIT TYPES.................................................................................................................................. 61 8.1 Oxide Mineralization ............................................................................................................... 61 9.0 EXPLORATION ................................................................................................................................... 63 9.1 2008 - 2009 Exploration .......................................................................................................... 63 9.2 2010 Exploration ..................................................................................................................... 63 9.2.1 Sampling Methods .................................................................................................................. 64 9.2.2 Analytical Methods ................................................................................................................. 64 9.2.3 Exploratory Drilling Program ................................................................................................... 64 9.3 2018 Exploration ..................................................................................................................... 66 9.3.1 Surface Sampling ..................................................................................................................... 66 9.3.2 Sampling Procedures and Quality Assurance and Quality Control ......................................... 66 9.3.3 On-going Exploration .............................................................................................................. 70 10.0 DRILLING ................................................................................................................................. 71 11.0 SAMPLE PRESERVATION, ANALYSES AND SECURITY ............................................................... 77 11.1 Sample Method and Details .................................................................................................... 77 11.2 Sampling Method and Data Collection ................................................................................... 77 11.2.1 Diamond Core Drilling ............................................................................................................. 77 11.3 Data Collection ........................................................................................................................ 77 11.4 Reverse Circulation Drilling ..................................................................................................... 79 11.5 Drilling, Sampling, and Recovery Factors ...............................................................................