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The Camino Rojo deposit comprises intrusive related, clastic sedimentary strata hosted, polymetallic Au, Ag, Zn, and Pb mineralization.

The deposit is situated between splays of the regional, northwest trending San Tiburcio fault zone, beneath a broad pediment of Tertiary and Quaternary alluvium. This pediment is surrounded by uplands of folded marine limestone of Late Jurassic through Cretaceous ages.). 

The Camino Rojo is hosted by Cretaceous submarine sedimentary strata. The most important ore host is the Caracol Formation, a rhythmically interbedded sequence of weakly calcareous turbiditic sandstones, siltstones and shales. The underlying Indidura Formation, comprised of regularly bedded siltstones and shales, and the Cuesta del Cura limestone, now recrystallized to white fine grained marble, host a minor amount of sulfide mineralizaiton, but are inconsequential hosts of oxide mineralization.

The gold-silver-lead-zinc deposit is situated above, and extends down into, a zone of potassic alteration developed in the sedimentary strata, and variably mineralized dacitic dikes. The mineralized zones correspond to zones of sheeted sulfidic carbonate stockworks, veins and breccias, creating a bulk-mineable style of gold mineralization.

The metal suite and style of mineralization at Camino Rojo are similar to the intrusion-related deposits in the Caracol Formation and underlying carbonate rocks adjacent to the diatremes at Peñasquito. 

Work Plan

The Company is reviewing all historic data and will be creating  a new geological model for the deposit, in anticipation of completing an updated reserve and resource estimate. The Company is also analyzing existing metallurgical data and engineering information in an effort to estimate recoveries of gold and silver in a potential heap leach operation and develop cost estimates for a Preliminary Economic Assessment expected to be completed in the second quarter of 2108.

Exploration work has commenced to evaluate previously identified targets for new gold and silver mineralization.  Exploration of the entire extensive land position will start in early 2018.  Prospective targets will be geologically mapped, sampled and potentially trenched.    On targets where initial work is positive, drilling will be planned.