EPITHERMAL SYSTEMS

The association of gold mineralization with volcanic and geothermal hot spring activity has long been
recognized by prospectors and geologists. We now know that this association is a consequence of the
hot magmas which not only produce volcanic eruptions and volcanic rocks but also are the source of
the hot fluids that transport gold and other metals and may in fact be the source of gold itself. Fluids
emanating from a molten magma are extremely hot and under high pressure deep below the surface.
As these fluids rise, they mix with surface waters and change the composition of the rocks with which
they come into contact. This process is known as alteration. Eventually the fluids breach the surface
and form either acidic lakes known as fumaroles common in the craters of volcanoes or dilute, neutral
hot springs like those at Yellowstone or the Geysers in California. These two different surface
manifestations acidic lakes or neutral hot springs reflect two different fluid types that each result
from the two different paths taken by the magma as it rises to the surface. Both form gold deposits
and are known respectively as low- and high-sulphidation gold deposits. In both subtypes gold will
largely be precipitated from 2.5 kilometers depth to surface.

Recognizing that gold precipitates near the surface in these systems, the great American geologist
Waldemar Lindgren coined the term epithermal in 1933, epi meaning shallow and thermal referring to
the heated fluid. The chemist Werner Giggenbach further subdivided epithermal gold deposits into
low and high sulphidation types (illustrated right 1). Low and high do not refer to each types relative
amount of sulphide minerals (metal complexes of sulfur with metals). Rather the distinction is based
on the different sulfur to metal ratio within the sulphide minerals of each subtype. While this
discussion deals with high-sulphidation epithermal systems, it is worth mentioning that lowsulphidation systems also form economic gold deposits although they develop under vastly different
chemical conditions.

HIGH-SULPHIDATION DEPOSITS
High-sulphidation deposits result from fluids (dominantly gases such as SO 2, HF, HCl) channeled
directly from a hot magma. The fluids interact with groundwater and form strong acids. These acids
rot and dissolve the surrounding rock leaving only silica behind, often in a sponge-like formation
known as vuggy silica. Gold and sometimes copper-rich brines that also ascend from the magma then
precipitate their metals within the spongy vuggy silica bodies. The shape of these mineral deposits is
generally determined by the distribution of vuggy silica. Sometimes the vuggy silica can be
widespread if the acid fluids encountered a broad permeable geologic unit. In this case it is common
to find large bulk-tonnage mines with lower grades.
The acidic fluids are progressively neutralized by the rock the further they move away from the fault.
The rocks in turn are altered by the fluids into progressively more neutral-stable minerals the further
away from the fault. As a result, definable zones of alteration minerals are almost always are formed
in shell-like layers around the fault zone. Typically the sequence is to move from vuggy silica (the
centre of the fault) progressing through quartz-alunite to kaolinite-dickite, illite rich rock, to chlorite
rich rock at the outer reaches of alteration. Alunite (a sulphate mineral) and kalonite, dickite, illite and
chlorite (clay minerals) are generally whitish to yellowish in colour. The clay and sulphate alteration
(referred to as acid-sulphate alteration) in high-sulphidation systems can leave huge areas, sometimes
up to 100 square kilometers of visually impressive coloured rocks.
ALTERATION IN A HIGH-SULPHIDATION SYSTEM:

In contrast, low-sulphidation veins are formed when the fluids interact with greater amounts of
groundwater as they rise from the hot magma. The protracted boiling of the fluids in low-sulphidation
systems produces high grade gold (greater than one ounce gold per ton) and silver deposits. The fluids
interact with the surrounding rock for a much longer period of time than the quickly channeled high-

sulphidation fluids. As a result, the fluids become dilute and neutralized and the silica dissolves. The
silica is later precipitated in the veins as quartz, often sealing the fissure closed. When this occurs, the
pressure of the gases underneath the sealed fault builds until the seal is ruptured, which provokes
catastrophic boiling and the precipitation of gold. After this explosive boiling event, passive
conditions return, and quartz precipitates once again. This cyclical process results in the well-known
banded texture of the quartz-adularia veins typical of low-sulphidation vein systems. Quartz-adularia
veins can contain high-grade gold (greater than one ounce gold per ton) and silver deposits, over
vertical intervals of generally 300 to 600 metres. Within this vertical dimension, high gold grades can
make for a large amount of easy to mine gold in a narrow compact area.
ALTERATION IN A HIGH-SULPHIDATION SYSTEM:

HIGH-SULPHIDATION GOLD-SILVER DEPOSITS

TODAY

IN OR NEAR

PRODUCTION

Yanacocha, Peru
The Yanacocha deposit is operated by Newmont Gold Corp. It is one of if not the largest highsulphidation deposit in the world and one of the largest gold deposits of any geologic type. Reserves
stand at 128 Million Tonnes of 1.0 g/t or roughly 34.2 Million ounces of gold. The deposit is hosted
by volcanic rocks, largely fine grained andesitic tuffs and flows. The figures below and on the
following page illustrate a plan and cross section view respectively of the mineralized areas of the
Yanacocha deposit. The cross section illustrates diamond drill intersection in grams per tonne (g/t)
gold.2 Note how the gold is distributed within areas of vuggy silica and quartz-alunite alteration (red
and pink colours) which are surrounded by clay alteration.

Pierina, Peru
The Pierina gold deposit is located in Peru and is operated by Barrick Gold Corp. Gold is found in a
succession of volcanic rock rocks that consist of andesite lavas overlain by rhyodacite pumice and
lithic tuffs (permeable rocks). The gold and silver is predominantly found in the permeable pumice
tuff, with lesser amounts in the overlying lithic tuff and the underlying andesite. The high-grade areas
of the deposit are associated with vuggy silica alteration. This alteration type is surrounded by quartzalunite and argillic alteration. Ore-grade mineralization in the pumice tuff occurs over intervals of
more than 260 meters. The area of currently known mineralization at Pierina measures approximately
450 meters wide by 1,200 meters long and is presently open to the southeast. Over 95% of the known
mineralization at Pierina is oxide. However, sulphide feeder zones have been intersected at the bottom
of the deposit. At present Barrick Gold Corp. has defined reserves of over 65 Million Tonnes at an
average grade of 1.3 g/t gold.

High-Sulphidation Epithermal Deposits in Mexico

Mexico is particularly well endowed with epithermal low-sulphidation vein systems. In contrast, highsulphidation gold deposits have not been as well developed. This is likely due in large part to the fact
that high-sulphidation systems tend to occur as large bulk-tonnage deposits, which requires advanced
technology to discover and mine, whereas the high-grade narrow veins typical of low-sulphidation
deposits were more easily explored during Mexicos early mining history. However, in the last decade

two significant high-sulphidation systems have been identified in Mexico and are entering production.
Reserves are tabularized below.

THE CABALLO BLANCO HIGH-SULPHIDATION EPITHERMAL SYSTEM

The property is located 75 kilometers north-northwest of the city of Veracruz on the Gulf Coast of
Mexico and is roughly 10 kilometers by 15 kilometers in size. Logistically, it is extremely well
situated with the Pan-American highway running through the east end of the property and ready
access to power (Laguna Verde Nuclear Power Plant) and ocean vessel port facilities. In January,
2003, Comaplex signed a Letter of Agreement with Almaden Minerals Corporation whereby
Comaplex can earn a 60% interest in the Caballo Blanco gold property in eastern Mexico by incurring
exploration expenditures of $2.0 million US over 4 years.
The property is largely underlain by a sequence of volcanic rocks consisting of andesitic to dacitic
lithic tuffs, crystal tuffs and volcanic breccias. These volcanic centers are intruded by fine-grained,
magnetic monzonite and diorite intrusions and dykes have been identified in several locations on the
property. Large areas of clay and sulphate alteration cored by vuggy and massive silica have been
identified on the property. Three main areas of alteration and mineralization have been mapped and
are referred to as the Northern Zone, the Central Grid Zone and the Highway Zone. The Central Grid
Zone is interpreted to represent an area of deeper erosion where copper porphyry style mineralization
has been identified while the Northern and Highway Zones are interpreted to represent large, well
preserved high-sulphidation epithermal systems.

Previous Work
From 1995 to 1998, Almaden Minerals Ltd. completed extensive exploration that concentrated on
porphyry Cu-Au and Au-Ag vein targets in the Central Grid Zone (CGZ). The 1998 work included 17
RC drill holes (2390 meters) that tested soil geochemical and IP geophysical anomalies spatially
associated with mineralized float and outcrop. Preliminary surface work was completed in 1999 on
the Highway and Northern Zones. Several zones of gold and silver mineralized quartz-barite veins
were intersected. Two shallow drillholes into an intrusive in the Central Grid Area intersected 107
meters of 0.25 gmt gold and 0.18% copper in one hole and 40 meters averaging 0.39 gmt gold and
0.15% copper in another. Based on this work, it was interpreted that these holes were just touching the
top of the system.
In 2001, Noranda optioned the Caballo Blanco property from Almaden and drilled 7 diamond
drillholes totaling 1,641 meters. No significant copper mineralization was intersected and despite
significant alteration and anomalous gold mineralization in several holes, Noranda terminated its
option in the fall of 2002. It is noteworthy that Noranda was singularly looking for a large copper
deposit and their focus was not on gold.
Recent Exploration
After optioning the property from Almaden, Comaplex completed three exploration programs on the
property during the spring and summer of 2003. These programs concentrated on the Highway and
Northern Zones and included detailed alteration mapping, aided by the use of Almadens portable
infrared mineral analyzer (PIMA), rock sampling, an induced polarization-restivity (IP-R) survey and
a magnetic survey. This work outlined two areas of extensive alteration and mineralization
characteristic of high-sulphidation epithermal gold systems. Concurrent with this program, noted
explorationist, Jeff Hedenquist visited the property on Comaplex's request to review the geology and
alteration of the prospects and to assist Comaplex in best focusing their exploration efforts on the
property.

ALTERATION AND MINERALIZATION

Central Grid Zone
The CGZ is mainly a zone of clay - silica alteration. Numerous zones of quartz vein float have been
identified in the area in the past and the distribution of the vein float was mapped and sampled over
the entire area, which is approximately 3km by 2 km. Comaplex completed additional sampling of the
vein float with the vast majority of the samples assaying greater than 1 g/t and up to 25 g/t Au. Silver
is locally present and most samples were highly anomalous in Cu, Pb and Zn. The mineralized quartzvein float in the CGZ shares characteristics and settings that are typical of intermediate sulfidation
veins, commonly associated with and adjacent to lithocaps of high-sulfidation deposits. The vein float
may be indicative of a larger vein deposit at depth and their structural control and depth potential are
being assessed.
Highway Zone
In the Highway Zone is a 3km x 4km area which exhibits a zone pattern of alteration and
mineralization from innermost multiple silica core zones (vuggy quartz and silicified vuggy quartz),
to quartz-alunite (advanced argillic), to kaolinite and/or dactite to illite (argillic), to propylitic
margins. Rock samples from the Highway Zone are generally low (<200 ppb) with local high gold
values of up to 2 g/t. IP surveying identified an extensive area of high chargeability/low resistivity
which correlates well with kaolinite dickite - alunite (minor quartz) altered zones. High resistivity
anomalies generally correlate with inner zone quartz-alunite, vuggy quartz and massive quartz
horizons. The survey indicates these latter zones are linear and vertical in nature and could represent
the feeder zones to the alteration system.

The zones of vuggy silica, coincident low chargeability and high resistivity have not been drill tested
by Comaplex; however, a diamond drill hole was completed by Noranda at the southern end of the
zone, into the clay alteration, in 2001. This hole had several interesting gold intersections including
stockwork quartz veining from 51.35 to 84 meters depth within which a 6 meter section averaged 1.42
g/t gold. A sample in the same hole within a zone of lower temperature argillic alteration (from 192195 meters) averaged 2.5 g/t gold, and the final sample of the hole from 212.0 to 212.5 meters depth
returned a gold value of 4.98 g/t gold. The hole was lost at this point due to poor drilling conditions.
Northern Zone
In the Northern Zone, exploration has defined a large (roughly 6 km x 6 km) area of silica to
advanced argillic to argillic alteration. Multiple large zones of vuggy to silicified, locally brecciated
vuggy quartz, may represent multiple feeders to the alteration system. Past sampling by Almaden in
this area returned isolated gold values up to 11 g/t. However, very little work was carried out at that
time.

Rock samples collected by Comaplex from one of the vuggy silica core zones located in the eastern
end of the zone in July, 2003 returned gold values up to 1.2 g/t gold. A preliminary IP-R survey
completed in this area outlined a large, very high resistivity feature that extends to depth. Proximal
low chargeability suggests oxidation of the system. In January, 2005 Almaden and Comaplex staff
have sampled one of several areas of outcrop of vuggy silica and quartz-alunite acid sulphate
alteration. Thirty-two rock chip samples were collected over a roughly 35 by 100 meter area of vuggy
silica. These samples averaged 0.62 g/t gold and ranged from 0.01 to 4.67 g/t gold. Eleven samples
returned gold grades above 0.50 g/t gold and six above 1.00 g/t gold.

These results, which are interpreted to represent the gold content of a very high level in a well
preserved highsulphidation epithermal system, are considered by Almaden to be very encouraging.
The area sampled on surface is spatially immediately above significant resistivity highs identified in a
ground geophysical induced polarization (IP) survey previously carried out by Comaplex. The IP
survey also identified high chargeability responses associated with the high resistivity responses at
depth. This data suggests that resistive, vuggy silica material, similar to that sampled in outcrop, is
oxidized at surface and may extend to considerable depth.