On the higher levels, Quicay I is an epithermal sulphate acid deposit. Between the years 2002 and 2011, Corporación Minera Centauro has achieved a production of 600,000 ounces of Au in the Quicay Mine. Quicay's mineralization has a phreatomagmatic origin developed along a magma with an open breccia, cemented by Fe and free Au sulphides that surrounds the contact of two andesitic domes. Its origin has been definied as a diorite intrusive action as well as a late monzonite which have been controlled by fault structures systems.

 

The epithermal mineralization found in Quicay I is mainly concentrated at the intersection of the Afrodita-Esperanza faults (AZ 80°, BZ 80NW) and the Andean strike system fault (AZ 320, BZ 60NE) which cuts the prior one. Additionally, a third system of settled faults is found (AZ 20°, BZ 75SE).

 

In July 2013, Corporación Minera Centauro initiated its diamond drilling campaign at Quicay I. At the central area, 6 drillholes were executed, succesfully intercepting the transition area of an andesitic epithermal-porphyry deposit with a chalcocite, chalcopyrite, covelline mineralization in veinlets of smoked grey quartz moderate stockwork type and sheeted veinlets. Subsequently, 2 of the drillholes intercepted veins with massive mineralization of enargite, luzonite, sphalerite, bravoite, arsenopyrite, pyrite and supergenic sulphides such as chalcocite and covelline. The alteration found in this area is phyllic, ranging from weak to moderate.

 

Towards the northwest area, with 3 of the drillholes placed near the Andean strike fault, hypabyssal-andesites and andesites with some Au sections were intercepted. In this area, the alteration is comprised of local silicification and advanced argillic such as quartz-alunite-kaolin-pyrite. In the same manner, diorites, monzonites and magnetic andesites ditches were intercepted.

 

At the west area, 1 drillhole was executed, intercepting andesites with sporadic insertions of basaltic andesites with dissemination of magnetite (15%), pyrite (4%) and propylitic alteration.

 

At the northeast area, 4 drillholes were concluded showing a presence argillic alteration with quartz-pyrite-kaolin and punctual sections of silica-alunite.

 

In the south area, based on the geophysical anomalies of high chargeability and low resistivity, a propylitic area was intercepted at the interface of the andesitic lavas and volcanic agglomerates.

 

Subsequenlty, in order to achieve a better analysis and reinterpretation of the Quicay I project and based on the results of the finished drilling campaign, in November 2013 Corporación Centauro hired the services of Real Eagle Explorations in order to complete a geological mapping to define the main fault systems and carry out a geophysical survey with additional lines in Quicay I. The study was mainly focused on two aspects: finding new exploration targets and the Central area defined after the diamond drilling campaign.

 

Regarding the fault systems, three main systems were determined in Quicay I:

 

• Fault N80°E strike and 80°NW dip (Afrodita and Esperanza faults)

• Fault N40°W strike and 60°NE dip

• Fault N20°E strike and 75° SE dip

 

These three fault systems are an important structural control of the mineralization site at the central area of Quicay I. In the lithological-structural and alterations sections, mineralization intercepts are shown together with the probable apical part of the andesite porphyry with gold mineralization and some copper present.