Cardero acquires Gachupines gold property

Vancouver-based Cardero Resource (TSX-V: CDU) has signed an option agreement with Mexico's Compania Minera Palo Fierro to acquire the Gachupines gold property in Sonora state, the former announced. Under the agreement, Cardero would pay Fierro up to US$320,000, plus Cdn$85,000 (US$66,000) in exploration expenditures by May 2004, and 255,000 Cardero common shares , it said. Toronto's venture exchange must approve the transaction. The property, spanning 23km by 11km, covers "at least" 15 known gold occurrences, "which the company believes will be added to or extended on due to heavy vegetation cover," it said. Thirty percent of the gold occurrences evaluated to date show potential for bulk tonnage deposits, according to Cardero. As such, the company will start "an aggressive" sampling, mapping and trenching program. Including Gachupines, Cardero holds interests in three Mexican projects, and teamed up with Anglo American Mexico earlier this year to explore and develop additional projects there.