Mineralization within the property often occurs at the transition zone from Chimú up into the Santa and Carhuez rocks. There is a spatial association of dacite porphyry dikes emplaced within structural breccias with both structural and manto-style mineralization.

The Callanquitas veins (Callanquitas Este, Callanquitas Oeste and Cianuro) occur within a north south striking zone of multiple, anastomosing to divergent faults that extends over a length of 2,400 meters.

Individual veins can be up to 1.5km long with thicknesses between 0.2 to 8.2m. The Callanquitas structures are open along strike to the south and north and also at depth. The Callanquitas mineralization is considered an intermediate-sulfidation type, consisting of mineralized structural breccias that originally contained variable quantities of pyrite, arsenopyrite, and minor chalcopyrite. These sulfide minerals were subsequently strongly oxidized to significant depths. The primary mineralized structures (Callanquitas Este and Oeste structures), are nearly vertical and steep westerly dips are common.

The structures cut through a sequence of sandstone, siltstone and quartzite. The silicified sandstone and quartzite units were more amenable to brecciation and therefore more favorable for migrating hydrothermal fluids and mineralization. The dacite intrusive rocks are generally argillically-altered and although the mineralized structures cut through the dacite, the general lack of brecciation and development of open-space renders the intrusions a poor host for mineralization.

Detailed underground mapping by PPX, along with a re-logging of early core holes, indicates multiple stages of veining, brecciation, alteration, and mineralization. The initial event appears to be emplacement of quartz veins within faults, followed by multiple stages of hydrothermal brecciation (“HBx”) with associated pervasive silicification, which was then cut by sulfide veinlets. The last stage is a fault gouge or tectonic breccia (“TBx”) usually occurring adjacent or cross-cutting the HBx. The highest gold grades are associated with the early quartz and HBx while increased silver occurs with the late-stage sulfide veinlets. The TBx is argillized and appears to be mostly post-mineral in the paragenesis, though it often contains low-grade gold in the range of 0.5 to 1.0g Au/t. Gold within the TBx is believed to be due to the presence of mineralized clasts within the argillized fault gouge, though there are exposures underground of TBx with oxidized veinlets that can assay up to multiple grams of gold. It is possible that there are multiple TBx events with early-stage faulting prior to the formation of silica-sulfide veinlets.

Drilling indicates that mineralization in the Callanquitas Este and Oeste veins occurs over a 1,400 meters north-south strike length and extends to depths of up to 500 meters below the topographic surface. Oxidation within the mineralized structures occurs to depths of 200 to 300 meters below surface. Ag/Au ratios are generally low (about 10:1) in the oxide portion of the deposit, but can increase to over 100:1 at the oxide-sulfide interface. The change in Ag/Au ratios is not just related to supergene enrichment, but also represents the occurrence of late-stage, silver-rich, silica-sulfide veinlets which cut the more gold-rich hydrothermal breccias.

Domo mineralization occurs within a zone of bedding-parallel mantos and perpendicular veins along the crest of the southeast end of the Igor Anticline. Gold and silver mineralization is controlled by a series of northeast-southwest trending faults and occurs as oxidized pyritic breccias with variable silicification.

Tesoros mineralization consists of gold-bearing veins, breccias, and mantos along a major northnortheast striking fault that has localized the emplacement of dacitic porphyries and pebble dikes.

Portachuelos lies along the southern extension of the Callanquitas structure zone in an area where the north-south Callanquitas structures, and also the northeast-trending Domo structures, trend to the south and southwest into the western portion of the Huevo de Condor dacite porphyry stock.

Ore is processed at Planta Las Lomas (“Las Lomas”), located in the Department of Piura, Peru.