(VHMS: Au, Pb, Ag, Zn, Cu)
The “El Naranjo” corresponds to a VHMS deposit prospect; it takes the name of the El Naranjo village located in the Lancones District, Sullana Province, and Department of Piura. This project lies at about 1,040 Km to the north-west of the Lima city. The average altitude is about 300 m.a.s.l. Access is excellent by plain and vehicle; all kind of logistics are available in the area of influence including water, electricity, labor, etc. The property is composed of 3 contiguous concessions forming a total surface of 2,500 Ha.
In the last decade the Peruvian company Buenaventura developed some exploration works such as geological mapping and geochemistry. In 2001 Buenaventura formed a joint venture with BHP Billiton to develop a regional geophysical survey (gravimetry) in the entire Lancones basin.
Local geology comprises Cretaceous sediments and volcanics intruded by Late Cretaceous intrusions. Observed mineralization corresponds to iron oxide stained silicified andesites, gossans outcrops and barite veining, suggesting the existence of a Volcanogenic Hosted Massive Sulphides deposit. A vuggy silica rock with presence of hematite and jarosite (Cerro Gustavo) and hydrothermal alterations such as silicification, argillitization, and quartz-sericite assemblage corroborates the existence of VHMS mineralization type. Some breccia bodies have been also recorded.
Surface initial rock geochemistry carried out by MRC1 company in the last years in El Naranjo shows gold values ranging from 0.04 g/t Au to 0.5 g/t Au at the Cerro Gustavo target; while in the breccia bodies yielded up to 1.8 g/t Au.
The area is a green field deposit which needs exploration works such as detailed geological mapping plus hydrothermal alteration mapping, rock geochemistry, soil geochemistry, geophysics and diamond drilling with an approximate overall cost of about US$ 3M.