GEOLOGICAL AND METALLOGENIC

RECONNAISSANCE OF SOUTH OF MANBIJA

GEOMINES

1. INTRODUCTION

1.1. OBJECT OF THE PROJECT AND USED METHODS

The purpose of the project consists of elaborating a detailed geological map (1:
2000) of a region of 632 hectares or rather 6.32 km² located immediately to the
South of the auriferous zone of Nambija, on current development. With this
purpose, an equipment composed by two geologists and a topographer, and
complementing afterwards with a geophysical, they have stayed during 10 weeks
in the area of the project, from May 22 to October 1st, 1987. The maps and the final
report have been elaborated in the offices of Geomines Ltee in Montreal, Quebec,
Canada.

In first term, it has been proceed to effect a topographic raising to scale 1:2000 of
the creeks and paths using compass and cord. Then, the geological map
simultaneously has been elaborated. they have been taken superficial rock
samples and sediments of the rivers using bats. These samples have been after
mashed and analyzed in laboratories by 36 elements. Of the same way, they have
been developed geophysical explorations by magnetometric and electromagnetic
(VLF) on a mesh NS - EW with exploration lines that have 16 km of length.

Also, it has been effected a geological recognition to scale 1:5000 with takes
simultaneous samples of bat rock, in a region of some 18 km2 located to the
South and to the East of the maping region to the detail.

1.2 LOCATION AND ACCESS

Nambija is located in Southeast of the Ecuador, at 20 km to the East of Zamora,
capital of the province of Zamora Chinchipe, and 420 km to the South of Quito.

The first section of the route to Nambija is from Quito to Loja. In this first section
can be traveled by plane from Quito to La Toma (airport of Loja) in a flight that
take approximately an hour or in car, in a trip that delay 18 hours, by asserted
highway. From Loja part a second category route to Zamora, whose normal tour
delay two hours and a half, but the frequent landslides that produce in this route
can cause serious arrears. From Zamora the route continues to Namírez, place to
where is arrived after a trip of an hour. In Namírez is necessary to cross the river
Zamora, either in boat, if the level of the water is not too high, or using a peatonal
pendulous bridge. The trip continues then in car or bus by an additional hour
until Cumay Alto (locally called San Carlos), place where it can be rented mules to
rise to Nambija in a trip of three hours and a half, duration by a horse-shoe road
in wrong state.

1.3. TOPOGRAPHIC AND CLIMATE

The region in study is located in the mountain chain of Nanguipa that form part of
the buttresses of the Eastern mountain chain of the Andes. The relief is very
injured, with altitudes that vary between 1400 and 2400 msnm. The area is
characterized by the numerous defects presence and scars let by the landslides.

The drainage system of the region is certified by the tributaries of the Quebrada del
Fierro. The waters of this gaps empty successively in the rivers Nambija, Zamora,
Santiago, Marañon and Amazon and finally in the Atlantic Ocean. The
climatological information is extremely limited.

The climate is tropical wet. The temperature oscillates between 7°C in the evening
and 20°C in the day, but exceptionally it can reach 30°C. The region is frequently
covered of fog and the rainfall surpasses 3000 mm by year, what has hindered
much the advance of the field projects. In September has been observed a certain
truce in the rainfalls that possibly will be extended until December.
The vegetation is of the type florets pluvial equatorial and therefore very dense, to
such point that it is necessary to use machetes to open path. The rock outcrops
better exposed are found in the creeks, that constitute at the same time the
improvements access process.

1.4. LOGÍSTIC

The communications are difficult in Nambija. The only one transmitting radio
station - receiving of the place is found in the branch of the Central Bank for
internal use. Within little time, the bank will be equipped also with a telephone
operated at micro - waves. Concerning the public facilities, the IETEL of Zamora
offers international telegraphic and telephonic services but it does not have telex.

The most next Airport is La Toma, near to Loja, that gives services in regulars
flights to Guayaquil and to Quito. Exist also a runway and a military heliport in
Cumbaratza. In Nambija, there is a heliport located in the facilities of the Central
Bank.

Also, it is possible to rent pickup trucks without difficulty, taxi to Loja and to the
airport La Toma, the same as to Zamora. Insofar as the provisions, the basic
products can be acquired in Nambija, but the variety is limited. The available
water in Nambija has a high risk of be contaminated, so that in the present
campaign the personnel has been provisioned of spring water, considerated pure,
that buds in the South flank of Mapasingue.

In Nambija is difficult to find a housing adapted to stay by long time. Therefore, it

should be to consider the need of building a base camp. Because of the climate,
the type of construction more common is of wood, up with respect to the natural
surface and with zinc roof. The wood in plates can be acquired of the local rafters
but the zinc must be bought in other place. Taking into account to the temperature
descends by the nights, it will be very useful to have any type of heater (to
kerosene for example).
In the place is found kerosene, oil diesel, gasoline and also gas balls. Electricity can
be acquired of some proprietary of stamp mills equipped with electrical
generators.

Also, in the area is possible to find hand of work not qualified: guides - cutters,
carrying, pawns, etc. The availability of this labor fluctuates of agreement at the
rate of the mining production.

1.5 HISTORY AND METHODS OF EXPLORATION

The development of the gold in the region date of the pre-Columbian era. To mid
of the XVI Century, the Spanish continued the development using the indigenous
labor, but around the end of this century the diseases and the social instability
caused to the close of the mining activity in the region.

It is recently the beginning of the present decade that the deposit of Nambija was
rediscovered for the gold seekers that were soaring the creeks washing the
sediments by batting. At the beginning, the development were made discreetly,
but the secret could not be kept by far time and the region was quickly invaded by
thousands of persons contaminated by the fever of the gold. According to our
estimates, to the moment of elaborating this report, the population of Nambija is
between 7 and 10 thousand inhabitants.

Regrettably, the deposit is being exploited of inefficient and chaotic way. Many
small mining their dig where better galleries seem, without planning and without
taking into account the most elemental safety rules.

To trigger the driller hammers are used compressors activated by diesel motors.
Once the drills are punctured, they are put dynamite charges and is flown the rock.
After is separated visually the sterile fraction from the mineralized fraction that is
transported immediately by the shoulder to one of the numerous windmills of
stamping where the rock is mashed in water presence.

The product of the grinding is gone through a wash channel in order to separating
the heavy fraction. Immediately, this last fraction is washed in mercury presence
to obtain finally a ball from amalgam from mercury - gold that then is burnt to the
blowpipe to make to boil the mercury and to obtain relatively pure gold. After, this
product is transported to the local branch of the Central Bank that buys the metal
after have been molten and heavy.

1.6 GRATEFULNESS
The authors wish to thank to the Central Bank of the Ecuador by the price help that
has provided, in particular, to the Chief of the Marketing Department of the Gold
in Quito, Lcdo. Oswaldo Hernández, and to the managers of the branch of
Nambija, Lcdo. Galo Román, Lcdo. Fausto Andrade and Lcdo. Baltasar Guaruizo.

Our permanency in Nambija has been more agreeable thanks to your hospitality,
his experience with respect to the local conditions and your logistics assistance,
without speaking of the banking services.

In Zamora, we want to thank to Mr. Magner Turner and his equipment by the
borrowed logistical services and by the visit to the mine of Guaysimi.

Two teachers of the University of Quebec in Montreal, Dr. Michel Gauthier and Dr.
Michel Jebrak, they have encouraged us much with theis stimulant discussions on
the nature of the deposit.

We thank also to Dr. Robert Wares (Ph.D.), they specialized in skarns that it has
contributed largely in the elaboration of the chapter "Metallogenic" already to
Mrs. Anne Charland (M.SC.) that has participated with their knowledge of
volcanic rocks, both of the University McGill in Montreal.

In the University of Laval in Quebec, we want to thank to Dr. Réjean Hébert

(Ph.D.) and to Mrs. Sylvie Roy (M.SC.) by their petrographic descriptions, as well
as to Dr. Robert Ledoux (Ph.D.) by their appreciated concerning advice to the
heavy minerals.
We thank, also, to all the equipment of the INEMIN of the Ecuador, whose
countless services would certify a vast list. Furthermore, we thank also to the Ing.
Edgar Pillajo, who has elaborated the cartography of the vertex NE of the map B.

We are particularly recognized by the services of the Eng. Ivan Endara, Director
of the Laboratory of Chillogallo, and Dr. Ahmed Mahmood, belonging to the
regional office of Geomines in Rouyn-Noranda (Quebec), by the execution of the
petrographic studies.

We thank to the field brigade certified by Mr. Marc Chénier - geologist project
chief, Mrs. Sylvie Prud'homme - geologist, Mr. Albert Bastien - technical -
topographer - drawing, Mr. Jan Stembera - geophysical, and Mr. Arturo Cabrera -
assistant of field and logistical support in Ecuador.

At the end, thank you very much to all the auxiliary personnel so much in Ecuador
as the Central headquarters of Géomines in Montréal, Canada.

2. GENERAL GEOLOGY

Exist two recent geological maps, to scale 1:1.000.000. that they cover the Republic
of Ecuador. One of them has been published by the DGGM and the French
Institute of Oil, in 1969, and the gold by the DGGM and the Geological Sciences
Institute, in 1982. The present chapter is widely based on this last and in the
explanatory bulletin that accompanies it.

Ecuador is split into three geological provinces that correspond approximately at

three regions phisiographycs. These three regions are, from West to East: The
Coast, the Sierra split into two mountain chains separated by the Interandino
Valley in the North of the country and the East separated in two regions: the
subandina zone and the Eastern Basin (Figure 3)

The basement of the coast is constituted by basaltics toleitics rocks of the Cretacic,
that would constitute a portion of the Oceanic bark welded to the continent. These
rocks are recovered of detritics sediments of the Cretacic Sup. and of the Terciary.
The Western mountain chain is composed by basaltic volcanic rocks of the Cretacic
(equivalent to those of the Coast), recovers of andesitics and of piroclastics lavas of
the Terciary and of the Quaternary. The Real mountain chain (or Eastern), on the
contrary it is formed by a whole slew of metamorphics rocks (esquists to mica) of
the Paleozoic. The rut intra -Andean, that separates the two mountain chains in
north half of the country, it is a depression whose exact nature is not known due to
the fact that the contacts are covered by the volcanics recent.

A great fault of cabalgamiento separates the Sierra from the East, where is found in
first term the subandina zone structurally separate, but stratigraphicmently
forming part of the properly such Eastern Basin located more to the East. This
basin is composed of sedimentary rocks deposited in three phases on the
precambrics rocks of the Shield Guyano-Brasilian. First, the marine sedimentary
of the Paleozoic and of the low Mesozoic (Formations Pumbuiza, Macuma,
Santiago and Chapiza), phase ended by the volcanism (member Misahuallí of the
Formation Chapiza). Then, the marine sediments deposition geosinclinales of the
Cretacic Superior (Fm. Hollín, Napo and Tena regrouped also under the training
name Lemon). The end of the Cretacic brand the origin of the Andean orogenismo
that is characterized by a classic sedimentation originating from the West.

The subandian zone has been distorted in the Terciary Superior. The fault that
defines the West limit of the subandian zone and their contact with the Real
mountain chain is labeled by the presence of a series of batholith granitic of the
Jurassic (?), probably displaced by the tectonic associated with raising of the proto
-mountain chain (end of the Cretic). The volcanic rocks and subvolcanics
associated with certain batholiths, as the batolite of Abitagua and included in the
miembre Misahuallí of the Chapiza Formation, they could represent a late phase
of that same plutonic (evidence of comagmátic origin). By extension, this theory
would be related perhaps also to home volcanic rocks observed within the limits of
the Batholith of Zamora, in the area object of the present study. In addition to rocks
plutonics granitics, they have been mapping, very about this region, sedimentary
rocks of the Santiago and Chapiza Formations to the North and to the South and
possibly to the East (Feininger, 1987), the same as sediments more youths of the
Lemon Formation (to the North).

Feininger (1987) proposes a theory according to the one which Ecuador would be
split into five "lands" allotóctonosos, between those which is found the "Santiago
Terrane" that understands the South half so much of the Real mountain chain as
the of subandian zone (including the Batholith of Zamora), zone characterized by
the exclusive presence of the Santiago Formation that would be absent in the other
areas.

Santamaría et all. (1983) and Pillajo (1983) have effected projects in the region of
Nambija (photogeologyc maps and general recognition visits). Both identify a
sedimentary and volcanic rocks zone to the inferior of the batholith, zone that
would have been in part skarnificated. The auriferous deposit of Nambija is found
within this zone.

3. GENERAL GEOLOGY

3.1 LITOLOGIC DESCRIPTIONS

3.1.1 GENERALITIES

In the framework of the present work have been carried out two geological
raisings. The first, to scale 1:2000, it has covered a zone of 6 km2 located
immediately to the South of the deposit of Nambija on current development. To
the East and to the South of this detailed zone, was effected a mapping of
recognition level, to scale 1:5000, that covers a total surface of 18 km2 .

During the development of these raisings were described about 700 outcropss
and the litological and structural information obtained were registered on the
respective topographic maps. In order to determine the nature of the litological
units found, very affected locally by hydrothermal alteration, and to specify the
nature of the auriferous mineralization, they have been studied 180 sample thin
plates and 56 thin polish plates with the intervention of five specialists in
petrography. All the samples originate of the zone of 18 km2, 29 that they were
taken within sector of the mine of Guaysimi. The conclusions of these petrographic
studies form part of the description of the different litological units and of the
chapter "Metallogenic".
 The region of Nambija is little known geolgically, the few existing maps are
very general and they have been elaborated for the most part by photogeological
interpretation. This region located to the South of the Ecuador, in the subandian
zone, it is a characterized by the sediments presence and volcanic of age Paleozoic
to Mesozoic cut by batholiths of composition between tonalitic and granodiorític of
Jurassic age (?). The zone is tectonicly active and constitutes a strongly ridden
waist that is displaced currently to the East.

The estratigraphy of this zone is relatively well known in the North and in the
central part of the country, largely thanks to the oil exploration projects. On the
contrary, in the South of the country, to the East of Zamora, the place is not very
documented and, according to certain recent projects (Feininger , 1987), would
seem that the estratigraphy and the tectonic evolution in this place would have
been different with relation to the North parth.

Consequently, even though the rocks observed in these raisings seem to

belong to the training Santiago (Jurassic - Superior), lack geological data to
regional and local scale in the region of Nambija, so that the restricted surface of
the studied zone does not permit to establish estratigraphic correlations in the
present study. Furthermore, the relationships between the different litological
units found not always they can be clearly established in reason to the numerous
defects that cut all the considerated zone.

During the mapping, we have attempted of regrouping the studied rocks by

phases recognizable on the area, that is to say, in lithologics maps. In general way,
is found a sequence volcanic - sedimentary that houses to the auriferous
mineralizations, forming a band of some kilometers of broad in the bosom of a
batholith of granodiorític composition . This band volcanic - sedimentary seems be
extended by several kilometes according to direction N-S and it is limited from
East to the West by probably normal defects.

The sequence is constituted by proplastici rocks ( volcanic gap, block tuffs and
lapillis, crystal tuffs) between those which are intercalated thin horizons of
calcareous (sands and calcareous shales) metasomatcs in skarns and associated
with the auriferous mineralizations. All these materials are cut by dikes and by
small stocks of diorite, of apilitc and of subvolcanic rocks of composition as same
as the strusive rocks also volcanitcs (basalt alkaline) and late dolerites in the
defects and shear zones.

3.1.2 INTRUSIVE ROCKS

3.1.2.1 Granodioritic (G and G1)

This litological units, probably located in the lower part of the stratigráfic
sequence of the studied zone, is found in the edges East and West of the mapping
surface, constituting in fact a batholith that is extended throughout several
kilómeters within the region. In the considerate place, this unit is cut by numerous
defects that they have given cause for a collapse structure within the one which has
been deposited thereinafter a sequence volcanic – sedimentary.

The unit that is all right characterized in the outcrops and it can or not to
present alterations. The rock is of pink color, gray and white with small black
stains caused by the crystals of hornblende. The texture is generally mean and
equigranular. In the eastern part of the mapping zone, in the region of the river
Guaysimi, is observed a facies of phenocrysts of hornblende with middle size that
varies between 5 mm and 1cm.

Locally, the granodioritc can contain intrusive fine material enclaves of

obscure gray color and of variable diameter between 2 and 10cm. It is equally
certain note composition zones more potassic than confer to the rock a most
reddish color.

At petrographic level, the granodiorite is mainly composed by waved

extinction quartz, of plagioclase (oligoclasas-andesina) and of pheldespatos
potassics kaolinizeds and sericitizeds, of hornblende and of small quantities of
biotite with alteration in chlorite and of traces of disseminated opaque minerals
(mainly pyrite). It is observed equally trace of apatite and of zircón as
incorporation in the plagioclase, as well as esfene. The epidote, under the form of
prismatic crystals, is found in the form of incorporation in the plagioclases
pheldspars, replacing to the hornblende and in the form of veins. Finally, they are
found secondary carbonatics altering the plagioclases and the hornblende.

3.1.2.2 Tonalite-diorite (T)

The second intrusive important unit of the region seems to cut the
granodioritic. its composition, though locally tonalite, it is mainly diorite. It is
frequently found in the granodiorite in the edges of the e mapping zone in touch of
defect with the volcanitcs according to the direction NS. It is note also the presence
of some dikes as well as of a small stock in intrusion within the volcancs in the
central part of the region (Bankrupt #15). In this place, the diorite is cut by
numerous defects and the intrusion contacts with the volcanic that surrounds it
seem labeled by defects.

The rock is of fine texture, (1 mm), equigranular, of clear gray color to gray
middle, locally cut by pink veins of potassic alteration. In the eastern part of the
region, are observed locally outcrops of granitic thoroughly pink inside of this
unit.

The rock is composed mainly of pheldespar potassics and of plagioclase

kaolinized, sericitized and epidotized, of waved extinction quartz, and of
hornblende and altered biotite in chlorite. It is note also intersiticial secondary
calcite in the plagioclase and the hornblenda, as well as in the form of veins. They
are equally present the opaque minerals. In a sample (#1101), is observed a
"stockwork" of veins of pyrite, pirrotine and calcopyrite, with impregnations of
magnetite associated with the alterations in epidote-chlorite.

The dikes observed in the region can be microdiorítics, of whitish color,

sericitized, with the mafics minerals thoroughly altered.

In the center of the region, in the Bankrupt #11, are noted dikes with epidote,
clinozoisite and tremolite-ferro -actinote. A little more to the East, in the Bankrupt
#14, to the height of the Wells Eight, can observe an intrusive of whitish color and
of fine texture, probably semi - deep and located throughout a defect E-W, the one
which are associated some occurrences of skarn. The rock presents an n biotític
precocious alteration, a very strong hydrothermal sericítice alteration with
piritizatión and finally a potassic alteration.

3.1.2.3 Subvolcanics Intrusives (A1 and A2)

Between the intrusives that they seem late and that they cut the granodiorite
and the diorite, it is note a hipoabisal facies of andesitic composition that is
presented under the form of small intrusions in the Southwest part as well as in the
center of the region, associated with the skarns of the mineralized zones on current
development of Nambija. It has been noted their its presence in the sector of
Mapasingue, where seems intercalated with the horizons of ashes tuff, as well as in
the zone of the Playón.

To fresh surface, the rock is of porphiritic texture with phenocrysts of

plagioclase whitish of 1 to 2 mm, in the bosom of a gray color greenish counterfoil,
frequently pyritized. When the rock is altered, is presented of whitish color and of
rather mean texture.

Microscópicmently, they are observed phenocrysts of plagioclase, strongly

sericitized, in a quartz counterfoil – feldspar microgranular. The mafics
amphiboles minerals are entirely decomposed in clorite, ferro-actinote, calcite and
epidote. It is note equally secondary quartz and calcite in microfisures.

In the contour of the stock dioritic, in the part east-central of the region, the
results of the geophysical raising indicate the probable presence of a dike of
granitic of direction NW - N. The outcrops in the surroundings indicate the rocks
presence of type lode, hollocristaline and porphyritics. The rock shows a beige
counterfoil color to clear brown with phenocrysts of whitish plagioclase from 2 to 4
mm. Microscopicmently, in addition to the plagioclase, is note the green
hornblende, a little of quartz in a quartz counterfoil - feldspar with esfeno,
tourmaline and opaque accessory. The composition is tonaític.
3.1.2.4 Reddish composition dikes tonalitic-dioritic (D1)

To the Northwest of the mapping zone, in particular in the bosom of the

diorite, are observed dikes of some meters of thickness, of direction E-W, NE-SW
and of abrupt slope, constituted of a brown material - reddish to reddish, of
slightly texture porphyritic, compound of plagioclase (and of Kfeldspar) altered by
the calcite and epidote, of quartz, and of a fierro -magnésic (amphibol) clorotized.
It is note also the apatite, in incorporation within the plagioclase, and the epidote.
Locally, the dikes present edges of about 1 m of broad composed of a fine material,
laminated, of beige color. In thin plates, the rock is leucócrata, constituted of felsics
minerals thoroughly sercitized. The global composition of the dikes seems be from
tonalitic to granodiorític.

Finally, these dikes seem be displaced by the defects N and NE.

3.1.2.5 Dikes of dolerite (D2)

Some dikes of dolerite cut the volcanics in the central part, to the South of the
region. These dikes, of direction NW, seem associated with the important defect of
the same direction and slightly decalados by the direction defects N-S and NE-SW.

These dikes, with a broad maximum of about 2 meters, present a fresh surface
of obscure green color, of fine texture to mean or slightly porphyritic. They are
composed of plagioclase moderately basic, kaolinized, of pyroxene (augite)
fractured with a chlorític alteration and a little of disseminated opaque minerals.
Locally, they have been able to observe tapes in the bosom of the dikes with an
edge aphanític obscure and obscure color levels and of fine texture to mean,
altering with levels clearer.

It should be to note that the dikes, subsequent to the volcanic, they are not
affected all over the net of fractures that cut to these last.
3.1.2.6 Dikes aplitics and intrusive felsics several (D3)

Flat several of defects N-S and E-W they are associated with the presence of
aplitcs or of intrusives felsics, generally of clear gray color and of bulk texture.

These rocks are composed mainly of plagioclase (oligoclasa-andesina) and

Kfeldspar, kaolinized, sericitized and with alterations in epidote and carbonates.

3.1.2.7 Dikes of andesite porphyritic (D4)

In the north - center of the region, in the Bankrupts #11 and #14, are noted
"dikes" or washes of andesite porphyritic of about 1 m of broad cutting the
pyroclastics rocks. In the outcrops, the rock is of gray color - greenish clear with
phenocrysts from 2 to 5 mm of diameter and obscure color.

In thin plates, is observed a counterfoil formed by microlits of plagioclase,

phenocrysts sub - automorfs of an ancient ferromagnesiane (piroxene or
hornblende) entirely replaced for the counterfoil. Finally, it is note the presence of
pyrite and of calcopyrite, in irregular bulks of about 5 mm of diameter
disseminated in the rock.

3.1.3 VOLCANIC ROCKS

3.1.3.1 Generalities

The lion's share of the mapping territory for this study is composed of
volcanic rocks, that certify a sequence volcanic - sedimentary. Such as has been
mentioned previously, these rocks form a band of some kilometers of broad, of
direction N-S, and it is in touch of defect with the granodiorite.
 Seem, to the light of the field observations, that the volcanic rocks would be
subsequent to a batholith granodioritic. However, the volcanic rocks are cut by
dikes and by small instrusions of composition tonalite-diorite, as well as by dikes
of dolerite, intrusives felsics and, less frequently, by rocks hipoabisals, lava washes
andesitics and injected basaltics in the shear zones.

The sequence is formed mainly of piroclastics rocks in those which the

composition seems quite uniform, of andesitic to dacitic locally. In general way,
they are observed tuffs of lapilli, , they are constituted by crystals of plagioclase
and by fragments of traquiandesite in the bosom of a volcanic counterfoil. With
much frequency, is note the minerals presence metamorphics such as the epidote,
zoisite, tremolite-ferro - actinote, chlorite, vesubianite, calcite, probably due to a
metamorphism of contact. The final facies constitute the cornea rocks.

Such as has been mentioned in the introduction of this chapter, the different
mapping facies represent descriptive facies (litological map units) before that
litoestratigráphic units in the strict sense. The distinction between the various
parts, even though it is substantially granulometric, it is given also by the color and
the texture of the rock, as well as by the percentage and the composition of its
constituent. Locally, the rocks present own characteristics in several facies and not
always it has been able be established a very clear distinction.

3.1.3.2 Volcanic Breccia (V1)

The facies most characteristic facies consists of a volcanic breccia located in the
Northeast part of the mapping area, that is to say, in the Bankrupt of the Diamond
and to the East of the mountain chain of Nanguipa.

In the outcrops, this litology unit is presented either masive or intercalated

with block tuffs, lapillis and ashes, forming visible tapes to the natural scale. The
composition of these tuffs seems the same that of the breccia, with the only
difference of the smaller size and the abundance of the fragments in the rock.
 The breccia facies presents a whitish alteration surface to beige clear with
dusky color fragments. In fresh surface, the counterfoil is generally mean greenish
to obscure. The rock is composed mainly of a counterfoil criptocristaline quartz -
feldspar, of phenocrystals of plagioclase of about 2 mm and of litics subangulares
fragments of middle size, about 1 to 4 cm, being able to reach a ten centimeter.
These fragments are of volcanic origin, originate of trachite compounds rocks of
microlits of plagioclase with volcanic glass and present a fluidal texture. The global
composition of the volcanic breccia is andesitic.

3.1.3.3 Tuff of Lapillis (V2)

This facies occupies most share of the mapping surface and it can present
various aspects. However, in general terms this unit is composed of phenocrysts
and of litics volcanic subangular fragments of variable size between 1 mm and 3
cm (with an average about 1 to 2 mm) in the bosom of a fine counterfoil. The
alteration surface is of gray color - greenish middle beige clear, spotty of black
points that present an aspects that denotes the differential erosion of the fragments.

In the eastern part of the Bankrupt of the Diamond, this fragment tuff litics
and of phenocrysts is the equivalent of the volcanic breccia of bulk grain described
previously. It is note equally in the same sector, and frequently intercalated with
these facies, a rock a little different with a clear gray fresh surface showing
fragments, of phenocrysts pale and obscure.

In thin plates, the composition is revealed similar to that of the breccia. They
are observed phenocrysts of plagioclase (0.2-1 mm), occasionally sericitized and
epidotized with rock fragments andesitic of traquític texture. The counterfoil
composed of quartz, of feldspars and locally of micas, it is finely crystalline. It can
be also to note alterations in chlorite, epidote and serecite, as well as secondary
quartz and coals in veins. The global composition of the rock is andesític and
dacitic locally.

3.1.3.4.- Crystalstuff (V3)

 Even though understand occasionally litics fragments and are related also
with the tuffs of lapillis described before, the rocks grouped under the present
facies contains a percentage relatively topmost of phenocrysts. To fresh surface,
this litologic unit presents whitish phenocrysts of plagioclase of about 1 to 2 mm in
the bosom of an obscure gray counterfoil to black. When the rock is altered can
present a greenish or clear gray dye.

Microscopicamently, they are observed crystals of plagioclase (oligoclase-

andesine) that they can be sericitizeds or epidotizeds with the hornblende
chloritizade locally in a counterfoil criptocristaline quartz - felddpar. It is note
frequently an alteration in epidote, chlorite, calcite and a secondary silicification in
all the rock whose composition can vary of generally andesític to riodacític locally.

In the zone located in the immediacys of the stock of tonalite-diorite, in the

center of the region, that is to say, in the intersection of the Bankrupt of the Fierro
and of the Bankrupt of the Green Snake and in the road of Guaysimi, the rock
shows a potassic pronounced alteration. They are noted Kfeldspar and the
presence of epidote and occasionally of garnet.

3.1.3.5 Black Tuff (V4)

This faices groups to the grain rocks highly finer in comparison with the others
faices described before and understands the ash tuffs as well as the tuffs lítics of
crystals riodacític composition to andesític. In the bosom of this unit are observed
frequently originated tapes for the alternation of ash caps, of lapillis and crystals,
in particular in the center of the region, being directed northward and the hill of
Mapasingue (head-board of the Bankrupts #5 and #11).

The litologic characteristic of this facies is a tuff of obscure gray color to black,
of afanitic texture and of andesitic composition. In thin plates, are noted crystals of
plagioclase, quartz and biotite, recristalized with a size middle size of about 0.05 to
.5 mm. Equally, they can be consisted the volcanic glass presence in process of
desvitrification, being transformed into chlorite. This black tuff can be observed,
between other, in the Bankrupt of the Fierro, between the South branch of this
same bankrupt and the Bankrupt of the Green Snake.

In the Bankrupt #11, it can be stressed the outcrops of a rock of obscure gray
color, slightly reddish and of aphanitic texture. Locally, this rock shows
phenocrysts of plagioclase and litics traquiandesítics fragments whose size varies
from 1 to 4 mm, as well as greenish lodes of epidote. The criptocristaline quartz -
feldspar counterfoil is epidotized and the tremolite and the quartz replace locally
the lítics fragments.

3.1.3.6 Welded Tuff and Ashes Tuff (V5)

This facies understands the piroclastics rocks located on the hill of

Mapasingue, in the part center - north part center of the mapping region , and
associated with the auriferous skarns. Include, equally, the identical piroclastics
that they have been observed in contact with the skarns of the development of
Nambija that they are designated "box" by the inhabitants of the place.

The outcrops of this rock show an alteration surface beige clear and an afanitic
texture. This alteration penetrates profoundly in the rock and alone very rarely it
can be perceived a freshest surface of bluish pale gray color. In thin plates, this
facies reveals a litic tuff composition with fragments weld of tranquiandesite and
of hialine rock with vitreous cement and phenocrysts of plagioclase. The grains
counterfoil very fine is sericitizade. It is note, equally, an intensive silicification
expressed by numerous beaches, aggregates and quartz lodes, as well as of
epidote, of calcite and of vesubianite in the contact zones with the skarns.

These afanitics levels can be intercalated to the centimetric scale with horizons
of whitish material of fine texture, the same that they are particularly observed in
the summits of Mapasingue toward the South flank. The horizons are constituted
of tuffs with phenocrysts of plagióclase thoroughly sericitized and some traquític
fragments rock, whose plagioclase are transformed into tremolite esferulitic. It is
note also a fort silicification of the rock.
 In the extremity East of the Mapasingue hill is observed a similar rock, but in
the one which the size of the crystals is superior to those of the others piroclastic
rocks. For that reason, this rock has been represented under the facies of crystal
tuffs on the geological map. This piroclastics is the equivalent of a traquiandesite
or microdiorite with a counterfoil holocristaline and some composition fragments
andesitic. The rock has suffered, on the other hand, a tectonic sharp, such as
reveals it the parallel fractures presence full of quartz, as well as a metamorphism
of contact with epidot and vesubianite.

From the point of view petrographic, the rocks belong to that facies can be
approximated with those of the facies " black tuff" with tapes. it would said that its
current aspect, as well as its low magnetic susceptibilities, they would be due to a
strong hydrothermal alteration and to an intensive silicification, before that an
original composition more felsic.

Some occurrences (Bankrupt #5 et #14) of welded tuff more typical ("ash-flow

tuff") have been included equally in this facies. This litic tuff of crystals is
constituted substantially of plagioclase sericitizade and epidotizade in a vitreous
counterfoil altered in zealots or hidrobiotite and presents flowing structures
(laminations and stretched glass thorns).

3.1.3.7 Alkaline Basalt (V6)

In certain greater defect zones (Bankrupt #5, Bankrupt of the Fierro South,
Well Ramón), is note the late lavas presence.

In the outcrops, the rock is of obscure green color, of afanitic texture to

porphyritic, with phenocrysts of plagioclase that reach 1 mm of size, epidote and
chlorite.
 In thin plates are observed plagioclase sericitizade and epidotizade either with
hornblende or with a piroxene (titano-augita). The counterfoil is composed of
microlits of plagioclase and of volcanic glass replaced by clorite and serpentine.
The epidote, the quartz and the carbonats are present in veins and the chlorite
under the form of alteration mafics minerals. The opaque minerals are
disseminated in the counterfoil or in the form of incorporation in the amphibolite.

These rocks have been classified as andesitcs or andesitc basaltic when they
have been effected the petrographic studies. The chemical analysis of total rock
reveal, however, an alkaline affinity for these rocks that they have been regrouped
under the denomination of "alkaline Basalt's" in attention to the geochemistry
studies more detailed.

3.1.3.8 Volcanic Indeterminate (V)

This category has been used on the geological map in the places in which they
have not been possible to specify the type of volcanic rock, either in reason to the
lack of data or to the intensive hydrothermal alteration that they do not permit the
identification of the rock.

3.1.4 SEDIMENTARY ROCKS

3.1.4.1 Calcareous and Sandstones (k)

The alone important occurrence of calcareous in the region is located in the
surroundings Well Ramón, to the Northeast of the mapped region. In this place, is
observed with calcareous intercalated with some few sandstone banks as well as
with litchis tubas of lapillis. Certain banks of calcareous are metamorphosed in
skarns.

The calcareous observed are constituted by calcarenitas, calcisititas and

calcilutitas, slightly marmorized in contact with the skarn. A fragment of
braquiópodo not identifiable has been stressed locally.
 The sandstone banks have between 0.5 and 2 m of broad and they are
composed of feldspar angular sericitized and kaolinized, rounded quartz grains as
well as rock effusive fragments constituted of submicroscopic crystals. The cement
is carbonated.

3.1.5 METAMORPHICS ROCKS

3.1.5.1 Generalities

The places where are found the cornea rocks and the skarns represent zones of
metamorphism of contact, accompanied of metasomatism in the case of the
training of the skarns. These rocks derive from the transformation from a sequence
volcanic - sedimentary in rocks the one which piroclastics are intercalated with
calcareous and calcareous sandstones.

In the immediate surroundings to the mapped region, the only important

zones where they can be observed the skarns constitute the same sites of mining
development of Nambija and of Guaysimi. In these places, the original carbonats
rocks are thoroughly altered in skarns, while the piroclastics rocks, substantially of
very fine grain, they are transformed into cornea rocks.

3.1.5.2 Cornea Rocks

Most of rocks of this unit are associated with the horizons of skarn presence,
though also are found isolated outcrops in the bosom of the piroclastics in contact
with any intrusive.

In the sectors of auriferous development of Nambija and Guaysimi the cornea

rocks are presented under the form of rocks of clear green color, of fine texture to
aphanitic and of aspect silicificated. The rocks can show equally fine laminations
(2 mm) parallel and be interstratificade with horizons more bulk of epidote or
garnet. Generally, they are not found meaningful auriferous values in the bosom of
this facies; however, it is observed a mineralized cornea rock, intimately associated
with the zones of auriferous skarns, of obscure green color and of very fine texture.
Finally, they are found rocks thoroughly epidotized, of green pistache color and of
aphanitic texture.

In the zone of Wells Eight, several outcrops enclose a mineralogy derived

from a metamorphism of contact probably due to the presence of the intrusive
dioritic. In this way, it is note a rock cornea of clear greenish gray color, of fine
texture to aphanitic, with pyrite and chalcopyrite in veins.

To the East of the mountain chain of Nanguipa, to the edge of the batholith
granodioritic, are observed prompt outcrops of skarns and of granodioritic, are
observed outcrops prompt of skarns and of cornea rock in the bosom of the
piroclastics. As a rule, the rock is of fine texture to moderately fine, of obscure
green color, with altered zones of pink and clear green color and veins of epidote.

In thin plates, all the described rocks demonstrate a volcanic origin, belong
generally to the litics tuffs with crystals, of fine texture (black tuff V4, ash tuff V5)
and exhibit a metamorphic mineralogy. They are observed various mineralogical
assemblies that understand essentially to the epidote, zoisite, vesubianite,
diopside, tremolite - ferroactinolite and calcite. The counterfoil is frequently
chloritized, epidotized and sericitized could note locally a secondary silicification
of all the rock.

3.1.5.3 Skarns (M2)

Very few outcrops of skarns properly said have been able be observed in the
mapped region for this work. They are noted some prompt occurrences within
area with geological raising at recognition level to the East of the mountain chain
of Nanguipa that seem be derived from the metamorphism of thin intercalated
carbonates caps with piroclastics rocks.
 In the center of the region. In the surroundings of the Wells Eight, it has been
verified the presence of skarns and of cornea rock in touch with the intrusion
diorite subvolcanic thoroughly altered hydrothermally.

The West edge of the intrusive presents a skarns of calcics garnets and
carbonateds that derive probably from a carbonated rock, while the eastern
extremity is found a rock base of vesubianite and zoisite that shows an intensive
silification and constitutes, probably, a endoskarn.

In the sector Well Ramón is note the presence of skarns in the bosom of the
outcrops of calcareous under the form of small lenses in those which the contacts
continue the stratification plans. In Well Ramón, it can be seen one of these caps, of
about 5 m of thickness, that it has been thoroughly exploited.

In this place, the skarns, of bulk texture, it is composed mainly of calcics

garnets, of calcite, vesubianite, epidote, diopside and quartz, as well as a
mineralization of pyrite, pyrrhotite, chalcopyrite and sphalerite. The piroclastics
horizons intercalated with the calcareous are above all epidotized in these
alterations.

On the mining developments of Nambija and Gauysimi are observed

auriferous skarns that contain mainly garnets calcics (grossular), diopside,
vesubianite, quartz, calcite and adularia. The calcite, under the form of bulk plates,
alters and includes the vesubianite. Of the same form, the secondary quartz
invades the rock, including and surrounding the metamorphic minerals.

The skarns are frequently presented with tapes in those which can be observed
thin striping of clear green color and of fine grains that represent rock level corneas
derived from piroclastics, altering with beds of skarn of garnets, of texture more
bulk.
3.2 TOTAL CHEMICAL ANALYSIS OF ROCK

3.2.1 Sampling and Analysis

In order to determine the chemistry nature of the different lithologics units as

well as of the hidrothermals alterations that affect them, it has been selected 94
samples for total analysis.

The samples were selected in form such of having a representative sampling

of all the observed facies, so much of the rocks that present few or no alteration as
of those that appear altered in the area. The origin of these samples is as continues:
22 correspond from the different intrusive rocks, 46 to the sequence of piroclastics
and volcanic, 6 to the outcrops of skarn within the studied region, including 9
samples of the mine of Nambija and 2 of the mine of Guaysimi.

The rock samples have been ground until obtaining a grain that passes the
mesh 200 in the laboratory of the INEMIN, in Chillogallo (Quito), and transmitted
then to the laboratory Bondar - Clegg of Ottawa, Canada. The chemical analysis
has been effected by spectrometrics of the atomic emission of the plasma for the
greater elements such as Si02, Al203, Faith (total), Mg0, Ca0, Na20, K20, Ti02, P205,
Mn0, as well as for the C02 et S (total).

3.2.2 Results

The general results are presented in Annex II - 1.2 for numerical order. Annex
includes the corresponding lithologic each sample as well as a legend of the used
abbreviations.

All the places of origin of the analyzed samples are identified on the location
map C-1, exception made of 6 samples of skarn originating from the development
of Nambija , (#1287 - A, 1287 - B, 1289, 1336 - C, 1340, 207), and of the two samples
of skarn belonging to the development of Guaysimi (#G-2, G-5) that are located
outside of the limits of the map. The remaining three show of Nambija (# 1290 - A,
1290 - B,et 1290 - C) are included in the location map. It should be to note that most
of samples analyzed by the greater elements, they are equally analyzed by 36
smaller elements.

On 46 volcanic rock samples and 22 of intrusive rocks, that is to say, on 68 of 94

analyzed samples have been applied computer procedures. The figures 5 to 9
present the binary variation graphs of oxides: Na20 K20 versus Si02, for the two
groups and K20 versus Si02, Na20 versus Si02 and Na20 versus K20 for the
volcanic rocks only. The number of each sample is convenient identified above all
the graphs and the different lithologics units are represented by different symbols.

3.2.3 Succinct Interpretation

The examination of the variation graphs indicates in the first place the
similarity of composition between the intrusive and extrusive rocks; the two
groups present the same dispersion standard about the curve that separates the
alkaline fields and subalcanics. This characteristic would suggest equally the
character of transition of the originating means in these rocks.

Even though the high alkali contents in certain samples located about the
zones of skarns, of smaller defects or of the intrusive in the case of the piroclastics,
demonstrate without no doubts the presence of a potash alteration in the bosom of
the rocks, seems doubtful that this alone fact will be responsible of the character
highly alkaline of certain samples. This situation, to be compared with the two
populations obtained of Na as a result from the processing of the geochemical data
to see chapter 4.2, alone permits to speculate by the moment on the possibility of
the existence of different two episodes of magmatism or of two alteration episodes
potash. In the group of volcanic rocks, seems be noted a trend subalcaline trace -
alkaline in the piroclástics, while the lava washes relatively little altered found
sporadically in the defect zones associated with the late magmatic episodes, would
reveal an alkaline trend and would belong, therefore, to the basalts alkaline.
 Of the same form, the intrusive rocks that present few or no alteration show
also a subalcaline trend, except for the hypoabisal rocks associated equally with the
late magmatic events that present compositions located in the alkaline field.

These observations could then to indicate the presence of two sources or

volcanic episodes and of a tectonic means in transition. A tectonic basin
environment after - arch associated with a continental magmatic arch and with
volcanism trace - alkaline, it can be easily considerate. A potash enrichment and
an evolution toward smaller magmatic episodes more alkaline, it is not thing
unknown in this type of context (Reading, 1978; Best, 1982).

Finally, the examination of the results of the analysis of the samples that are
presented altered on the area the area does not reveal, to first sight, differences
labeled with the freshest samples, as would have been able to wait. In any case, is
present a potash alteration, such as has gone mentioned before and the figure 9
shows the relationship inversely proportional between Na20 and K20. it is note
equally a trace alteration – silice in the bosom of the rocks located about zones of
skarn.

3.3 STRUCTURAL GEOLOGY

3.3.1 Generalities

In the course of the geological raisings, they have been taken about 2000
structural mediations, the same that they were thereinafter processed by computer
methods. The stereonet obtained are presented in the figures 10 to 15. The studied
zone presents mainly flat of defect and faulting and would be interesting to make a
structural raising directly within mineralized sector of Nambija, in order to
understand better the relationships between the same flat and with the zones of
mineralización.
3.3.2 Photointerpretation

The results of the photogeological interpretation are presented in the figure 4.

The lineaments most labeled to regional scale are guided in the address NS
and seem to delimit a volcanic rocks corridor -sedimentary, in the form of abrupt
combs, in the granitoides bosom rocks that present relief more rounded. The
deposits of auriferous skarns of Cambana, Campanillas, Nambija and Guaysimi
are located in the bosom of this rocks band that seems be extended by several
length kilometers. The most attentive examination of the lineaments NS reveals
than would be tried to normal defects, possibly with a of the central sections and a
collapse to the edges East and West.

They are presented also numerous lineament of direction N-NE and NE and
limited by the outcrops NS. In the center of the considerate region is presented an
important lineament NW cutting the deposits of Nambija and Guaysimi.

Other general direction elements EW are equally important and cut the
structure NS in one way more extensive. As a rule, the hydrographyc system
reflects the structural lineaments.

In conclusion, to the South of the studied region is note a structure in a way

regulation and of origin done not know. Between other possibilities, the structure
would represent traces of an ancient volcanic center. This structure is cut by a
lineament NW akin to that that joins the deposits of Nambija and Guaysimi. In
certain zones of the mountain chains, are found boiler systems associated with the
tectonic graves (grabens) and with the lode deposits (by example., San Juan,
Colored, USA). Would be interesting to explore this structure in form more intense
in order to verifying its nature and its importance.
3.3.3 General Structures observed on the Area

In general form, all the studied zone is fractured and failed. Such as indicates
it the photogeological interpretation, the region is cut by numerous and important,
with directions N-NE, NE (as the visible defect in the sector of the mine of Nambija
and of the defect throughout the Bankrupt #5) and NW (as the defect that
continues the Bankrupt of the Fierro South and is extended of Nambija to the
Guaysimi Mine).

It is observed, also, important defects in direction EW (more precisely to 280°-

290°). In the Bankrupt of the Fierro, to the center of the studied region, exist flat of
shear and important defects, as well as in the Wells Eight, where a defect EW
seems to dial the edge of an intrusion and gives rise to an important shear zone in
the Bankrupt #14.

In end, in the extremity NE of the hill of Mapasingue in the sector of the mine
of Nambija, is note a greater defect plan guided to 280°-290° to what is long of
which is observed a tectonic gap. It is possible that this defect, as that of the Wells
Eight, is extended toward the East, crossing the mountain chain of Nanguipa, such
as suggests it the photointerpretation and the interpretation of the geochemical
values in gold that seem to follow these lineaments.

The movements observed throughout the defect plan NS, N-NE they are
always vertical movements, while the horizontal displacements seem have taken
place preferably according to the flat EW. This is particularly evident in the sector
of the Playón of the mine of Nambija, where it can be observed flat two subvertical
defects that seem conjugated with the directions 20° and 110°. The flat NE and
NW limited by the defect NS would represent extence bound fractures to a
principal system NS and to secondary systems N-NE and EW.

It is difficult to establish precisely the chronology of the defect plans without a

structural study more meticulous. However, it can be supposed that the first
located system has been the system NS, responsible for the collapses and of the
creation of a graben. The subsequent systems would be the defects NW/SE and
NE/SW throughout those which are found dikes of dolerite and of basalts alkaline,
respectively. Finally, they would be intervened the flat EW and NS, of possibly
conjugated way, and the numerous intrusives félsics would have been inserted
according to those fracture plans, as for example the intrusive volcanic félsic of the
Wells Eight or the granitic dikes of the Bankrupt of the Fierro South. The fact of the
that the system NS could have returned to move tardily it is indicated, between
other, by the traces now rectilinear of that primary system. The structural
observations to the scale of the outcrops goes equally in the same way. The
systems of quartz veins - pyrite located in the volcanic are almost exclusively
guided according to that plan and cut often the others systems. The dikes of
dolerite, late in relationship to the volcanic, they are only cut by join and veins of
direction NS.

Unwillingly to speculate too, we mention that the defect systems NNE and
EW they have been recognized in the Southwest of the Ecuador, bound to the ENE
movement of the Plate of Nazca in the Terciary Superior. The porphyry copper of
Chaucha in the Southwest of the country is located in the intersection of those two
transverse defects (Frutos, 1986).

Finally, they have been measured some tens of stratification plans within the
piroclastics and calcareous units , demonstrating the direction NW of the caps,
with a slope toward the NE in the part West of the slope band toward the NE in
the part West of the band volcanic - sedimentary (sector of the Mapasingue), and a
direction SE, with a dips toward the SW in the part East (sector of the Well Ramón
and of the mountain chain of Nanguipa). This, along with the lithologic contacts
observed, suggests a structure sinclinale with the piroclatics bulk sediments to the
foreign happening to the finest sediments associated with the carbonates
sequences and with the auriferous skarns toward the interiorof the structure. The
lineament NW/SE that cut the deposits of Nambija and Guaysimi would
correspond approximately to the shaft of the structure. Finally, it seems that a
defect EW, located in the surroundings of the Bankrupt of the Fierro, it has given
place to the displacement of the structure toward the left.

The determination of the important structural shafts is confirmed by the

stereonet obtained with the computer processing from the data.
3.3.4 Stratification

The figure 10 presents the stratification pole means. This graph suggests, of
general way, a shaft structure NW/IS with irregular micropliegues, probably due
to the movements throughout the numerous defects.

3.3.5 Faults

The figures 12 and 13 represent the concentrations of the poles of the defect
plans and the strias that are associated respectively.

They can be defined four (4) large plan families. The most important groups to
the direction plans N-NE/S-SW (5° to 20°) and of mainly abrupt slope (70°-90°). A
second family would have as flat middle a direction NE/SW (30°) with a slope
55° to 70°. A third family would follow a direction NE/SW (40°) abrupt slope by
80° to 90°. Finally, a last family, less important by the fractures density that
characterizes it, with a direction between 90° and 115° and a slope on the SW of
about 50° to 80°.

3.3.6 Join

The figure 11 represents the graph of density contours of the fracture poles.
The join with direction multidirectional with generally abrupt slopes. In spite of
all, the most frequent systems are substantially the same than for the defects, that
is to say, the systems N-NE/S-SW, NE/SW, E-W, and a plans family less
important NW/SE.
3.3.7 Veins

The veins (fig. 14) are guided continuing the important fractures system, that
is to say, in connection with a flat N-NE (5°-10°) with a mean slope of 65°. Other
two secondary plans can be equally observed according to the hosiery directions of
NE/SW(60°-80°) and NW/SE (300°-330°) with subverticales slopes.

3.3.8 Dikes

The figure 15 presents a graph of directions and slope poles of the dikes, with
different symbols according to their composition. As a rule, the plans compiled in
this graph show a mean direction NW-SE.

4. GEOCHEMICAL OF THE ROCKS AND OF THE

HEAVY MINERALS

4.1 INTRODUCTION AND USED METHODS

During the geological cartography campaign, they have been gathered

systematically superficial rock samples as well as samples of the heavy fraction of
the sediments in the creeks, these last concentrated using bat that are employed to
carry gold. They have been obtained 565 sample rocks and 321 sample sediments,
what makes a total of 886 samples. These samples have been withdrawals above all
within the region of 682 hectares but also in the recognition zone of 18 km2. the
site of the sample points is indicated in the Maps C-1 and D-1, respectively.

The sample rocks have been mashed in the laboratory of the INEMIN, in
Chillogallo (in Quito), until the resulting material pass the mesh 200 and then they
have been sent to be analyzed in the laboratory Bondar-Clegg, of Ottawa, Canada.
The heavy mineral samples have been also ground in this same laboratory.
 866 samples have been analyzed by neutronic activation simultaneously to the
gold and to 33 elements more and by atomic absorption to the copper and to the
lead. The results have been send to Géomines in diskettes and transferred then to
our electronic file. An impression of this file, including all the results of the
analysis and the coordinates of each sample, figure in Annexes II - 1.1 and III - 1.

The data of this file have been processed numerically with help of the
program GDM (Geological Date Management) in a computer IBM PC-AT. The
rocks and the heavy minerals have been treated separately to produce the
following documents: tables of statistics base, counterfoils correlation, histograms
of laws, binary graphs and geochemical maps to scale 1:5000.

For the binary graphs, it has been used the logarithmic scale in reason to the
great extension of the values (to see Table 1).

The histograms show the distribution of the concentrations of each

investigated element. For the same previous reason, not always results possible to
present graphically the whole the laws, so that in some histograms has been
necessary to put explanatory notes. The geochemical maps to the scale 1:5000
show, with the aid of symbols, the distribution of the laws within the region of
each one of the considerate elements. Additionally, it has been indicated with a
black point above all the geochemical maps, the site of 32 sample rocks in those
which the concentration of the gold is presented anomalous, i.e. 100ppb (to see
chapter 4.2).

4.2 GEOCHEMICAL OF THE ROCKS

The examination of the histograms of laws of gold in the analyzed rocks has
permitted to define the anomalous concentrations limit in 100 ppb, above the one
which exist 32 samples. Confronting the geometric averages of the laws of each
element of this subgroup (Table 1) is observed that the average of the average is
topmost for the arsenic, the fierro and the lead and bottommost for the sodium and
the bario (has not been taken into account the tungsten on account of the pollution
had to the crushing). These five elements have been considered as accompanist
elements of the gold and therefore they have been elaborated the histograms
(Annex II - 2), the binary graphs of each one of them versus the gold(Annex II - 4)
and the geochemical maps to the scale 1:5,000 of the distribution of each one of
these elements within the region (Maps C-2 to C-7).

The laws of gold in the rocks of the region vary from less values than the
direction index (5 ppb) until a maximum of 37,900 ppb (Table 1). The anomalous
laws(>100 ppb) are frequently associated with the defects or with the shear zones
and appear some times aligned according to the greater defect plans, as for
example throughout the Bankrupt of the Fierro - The Diamond, with a possible
prolongation to the East of the comb of the mountain chain of Nanguipa. In the
Northwest corner of the zone, the anomalous values , is note a values
concentration increased in the extreme part North of the region, about deposit of
Nambija. It is of noting that to the East of the comb of the mountain chain of
Nanguipa, the laws of gold are generally very decrease with exception of one of
them .

The laws of arsenic in the rocks of the region vary from smaller values than
the detection index (1 ppm) until a maximum of 383 ppm. The great majority of
laws are located in less than 40 ppm and the geometric average is of 4.99 ppm (to
see Table 1). The anomalous concentrations are found grouped within the region of
Mapasingue, where the laws of gold are relatively high, and directly to the such
region South, in the sector of "The Wells Eight", where the laws of gold are rather
decreases. In the Bankrupt of the Wasps, to the East of the comb of the mountain
chain of Nanguipa, there is a certain correspondence between the high values of
the laws of the gold and of the arsenic. In the others places (for example more to
the West and to the Southwest), where the laws of gold are increased, there is no
correspondence with the arsenic. These observations demonstrate the limited value
of the arsenic as indicative of the gold presence within the region in study.

The presence of the fierro in the rocks varies also from laws more decreases
than the detection limit (i.e. 0.5%) until a maximum of 43%. The great majority of
the laws is being in less than 10% and the geometric average is of 3.8% (to see
Table 1 and Annex II - 3). The high laws are generally associated with the presence
of the pyrite. The fierro is a staunch companion of the gold in all the areas of the
world (Boyle, 1979) and Nambija is not an exception. The fierro continues very
near to the gold in the sense of the fact that where the values of the gold are
increased, those of fierro are also and conversely (to see Map C-4).

The content in lead in the rocks varies from smaller laws than the detection
index (i.e 2 ppm) until a maximum of 10,600 ppm with a geometric average of 6.47
ppm (Table 1). Though the geometric average will be topmost for the samples with
gold to >100 ppb that for the whole the samples, there is no actually correlation
between the lead and the gold. This is evident in the binary graph (Annex II - 4)
where, for the major share of the anomalous samples in gold, the corresponding
value in lead is not very high. Observing the geochemical map of the element (Map
C-5), stressed remain that the high lead concentrations are found grouped in two
sites in particular: "Well Ramón" and the "Wells Eight". In first case, is found also a
little of zinc associated with the anomalous low laws of bario. From the geological
point of view is found within the calcareous stratified where is found galena and
sphalerite. The wells have been abandoned after a first attempt of development on
account of a decrease law of gold. In the "Wells Eight" the high laws of lead also
they are associated with the decrease laws of bario. It is found a little of skarn, but
the principal rock is an altered tuff. The wells have been quickly abandoned.

However, the first accompanies to the gold in the Bankrupt to the West, in an
important defect zone. Agree to note that the corresponding sodium contents are
particularly low.

It is found also a series of anomalous lead concentrations aligned according to

a shaft NS, on a parallel located to the East of the comb of the mountain chain of
Nanguipa.

The law of bario in the rocks varies from values less than the detection index
(100 ppm) until a maximum of 28,200 ppm, with a geometric average of 458 ppm
(Table 1). For the group of samples in those which the gold is anomalous, the
corresponding geometric average to the bario is of 217 ppm (Table 2), quite
bottommost that for the set of the samples. On the binary graph (Annex II - 4) is
seen clearly this trend. In the geochemical map of the element (Map C-6), the
anomalous low values of bario are generally associated with the high laws of gold,
but are found also decrease laws of bario in the region of "Well Ramón" and "Wells
Eight". Furthermore, is evidence a alineament of anomalous values of bario on the
flank East of the mountain chain of Nanguipa.

The sodium characteristics in the rocks vary from 0.1 to 6.7% with a geometric
average of 1.6%. for 32 samples, in those which the gold content is superior to 100
ppb, this average is of 0.2%, highly bottommost. According to the binary graph of
the sodium versus the gold (Annex II - 4) seems have two (2) populations: a first
with high sodium values for the laws of gold less than 100 ppm and a second
population with decrease laws of sodium.

On the geochemical map of the sodium (Map C-7) is seen that the low laws of
this element are associated with the high gold contents. But is found also places, as
"Well Ramón", where there is no practically gold, but lead and zinc associated with
decrease laws of sodium. The sodium would would have, then, scarce value as
indicative of the gold in the region.

In the chapter 3.2, they have been bought the values of k20 versus the values
of Na20 for 46 volcanic rock samples in those which have been effected total
analysis. Turned out to be it a relationship inversely proportional. Would be
interesting to analyze the whole of the taken samples of the region in relationship
to their contained of potassium and to put the results on a map in order to seeing if
it can be located in this way the potash alteration zones that they would be perhaps
bound to the presence of the gold.

4.3 GEOCHEMICAL OF THE HEAVY MINERALS

For 321 samples of the heavy fraction of the collected river sediments and
concentrate by batting and then analyzed by 36 elements (Annex III - 1), it has been
elaborated also a table of statistics base(Table 3), two correlation counterfoils:
arithmetic and logarithmic (Annex III - 3), a histogram of gold concentrations
(Annex III - 2) and the geochemical map of the gold (Map D-2).

Furthermore, the same as for the rock samples, it has been elaborated a
statistics table for the samples that had high gold concentrations, or rather greater
than 1500 ppb (Table 4). Comparing the geometric hosieries of the elements of this
table with those of the whole the samples, evidenced remain that the average is
topmost in the subgroup for the arsenic, the antimony, the bario and the tungsten,
those which would be therefore accompanied elements of the gold in the
concentrate by batting.

For this study have been considered solely the values of the gold, seen that it
is the own gold indicative the best by the gold. The law varies from values less
than the detection index (5 ppb) until a maximum of 41,500 ppb, with a geometric
average of 182 ppb.

On the geochemical map of the present gold in the concentrate by batting, is

seen that the contents increased in gold are found grouped in four places in
particular:

- Firstly, in the lion's share of the creeks that drenan the South flank of
Mapasingue, in the sector NW of the region, what does not result
surprising if is considered the proximity of the deposit of Nambija.

- In the second place, is found a concentration of high laws in the center

section - south of the Bankrupt of the Fierro. This anomaly is interesting
on account of the favorable conjuncture: important defect and proximity
of volcanic rocks of fine grain (frequently associated with calcareous) (to
see chapter 5).

- A third high values concentration of the gold content in the bat is found
in the recognition zone, in the corner SW of the region of the Bankrupt
24, where nearly all the samples present values. Considering that is
added to this the proximity of an important defect in direction NS, the
anomaly results very interesting. Since the laws of gold are very high, it
is possible that it will be due to the presence of this metal in the form of
pips, what would be possibly associated with a porphyry (seen the
predominance of intrusive in that sector). Of all way would be needed to
make a geological mapped and a more detailed sampling in this sector.

- A fourth anomaly, also in the recognition zone, is found in the sector SE

of the region, waters down of the auriferous deposit of Guaysimi, on
current development, on the Bankrupt #22. the taken sample waters up
 present the risk of be contaminated by the relaves of the mines, but the
four anomalous values samples have been taken waters down, in the
affluent that come of the West. This zone would deserve be better
examined: in addition to the anomalous values found in the bat, it
should be take into account the presence of a great calcareous rolled
song observed in the Bankrupt #22, between the samples B92 et ++B93.
Additionally, the existing geological conditions on the flank East of the
comb of the mountain chain Nanguipa would be favorable to the
presence of skarn: or rather volcanic sediments mapping not far from
there, possibly with intercalates of calcareous (the rolled song) and the
proximity of an important defect in the address NS throughout the
comb.

5. METALLOGENIC

5.1 GENERALITIES

This chapter presents the conclusions of a paragenetic study accomplished in order

to define a metallogenic model of the deposit of Nambija. The surface covered by
our field projects do not include own deposit of Nambija. Having accomplished
solely two project sessions and available having only the taken samples, the
conclusions that are presented are proposed solely as a first stage within
elaboration process of a genetic model of the deposit. It will be recommended to
effect subsequent stratified studies, , structural and paragenetics, in the same sites
of all the deposits known of the volcanic - sedimentary band (Cambana,
Campanilla, Nambija and Guaysimi) in parallel with studies of the regional
geological context in order to specifying the model.

The examined samples have been taken in the sectors of Mapasingue, of The
Arch and of the Playón in the mineralized zone of Nambija, in the mine Guaysimi
during a visit to the earthly, as well as in different places included in the mapped
surface to the detail, mainly in the sector of the Well Ramón.
 The paragenetic study has encompassed:

1) A megascopic evaluation of the alteration within the skarns and the

associated volcanic rocks, including alteration tests potash.

2) An examination in polished thin plates of the skarns auriferous and

sterile.

3) A tending bibliographical conference to compare these deposits with the

others auriferous skarns (to see Annex I SAW - 2).

5.2 CONTEXT LITHOLOGICAL AND STRUCTURAL OF

THE GOLD MINERALIZATIONS

The auriferous mineralizations are located within the skarns in the bosom of a
volcanic - sedimentary sequence. This last constitutes a rocks band of some
kilometers of broad, of direction NS and of unknown extension, limited to each
side by defects that seem to define a tectonic pit (record) to the interior of a
batholith granogioritic.

The sequence is constituted of piroclastics (volcanic breccia, block tuffs and

lapillis, crystals and ash tuffs) and of volcanic mixed alkaline and trace - alkaline
(basalts alkaline, andesite, dacite) within those which are intercalated thin horizons
of calcareous (sands and calcareous shales). The set is cut by dikes and by small
stocks of diorite, applies and subvolcanics rocks of similar compositions to the
extrusive rocks. They have not been observed sedimentary pelitics rocks. The
sequence volcanic - sedimentary is affected by foulding more or less irregular than
define globally a synclinal structure of shaft NW/SE, strongly cut by defects N-S,
N-NE, NW/SE, NE/SW with vertical movements and by defects E-W throughout
those which have been produced horizontal displacement.
 Of the foreign toward the interior of the sinclinal is gone from bulk piroclastics
facies toward the finest facies.

They are observed two types of skarn in the region. The first, it is located in
the eastern part of the studied zone (Well Ramón), it is in touch of defect with
piroclastics means to bulk. The values in gold are weak and the mineralization
observed is constituted by pyrite, chalcopyrite and sphalerite with a little of
galena.

The auriferous skarns properly said are located in the center of the studied
region, in the heart of the synforme structure and they are associated with the ash
tuffs being able to be presented finally laminated, silicated and metamorphosed.
The magnetic susceptibilities of these rocks seem be more decreases than of the
surrounding rocks, what remain demonstrated by the geophysical raising. The
explanation of this fact - intrinsic properties of the rocks or product of the
hydrothermal alteration very intensive - is still unknown.

It is note equally the stocks presence and of dioritics dikes as well as of

subvolcanics intrusions mineralizated in pyrite in contact of the skarns. In the
mine of Nambija, sector of the Playón, it has been observed locally a rock that is
resembled to a intrusive breccia (diatreme) associated with the mineralized zones.

Finally, the deposit of Guaysimi, located within same type of rock that of
Nambija, is found in the prolongation of the lineament NW/SE that defines the
shaft of the sinclinal.

5.3 MORPHOLOGY OF THE DEPOSITS

The mineralization auriferous economic seems bound exclusively to the

horizons of skarns and of intercalated cornea rocks, though is note also an
enrichment in gold of the greater defect zones inside of the volcanic rocks. The
levels of calcareous, skarns and ashes more competent constitute very fractured
and permeable trainings than permit the passage of mineralized solutions. The
matters precipitants presence (Fe, C02) can equally to play a trap geochemical role
in addition to structural trap originated by the great number of fractures.

In Nambija, the auriferous mineralization is presented under the form of gold

in native state, so much disseminated in the rock, more frequently between the
garnets of the skarns of bulk texture (derivatives from the metamorphism of
carbonates rocks quite pure), as of the lenses or of the quartz veins - potash
feldspars that cut the skarns and the cornea rocks (derivatives from the
metamorphism of the piroclastics rocks).

In Guaysimi, the context is similar. The observed typical sequence, according

to certain mining, they would be tuffs altered by elements (calls "quartzite"),
followed by laminated metamorphosed tuffs in cornea rocks, of clear green color,
followed after gaps (not always present) and by skarn properly said.

The mineralization is disseminated in the skarns but in certain zones, is

presented under the form of veins of quartz - potash feldspars that cut all the
sequence before described.

5.4 ALTERATION HYDROTHERMAL

An megascopic examination of about 25 samples originating from the mapped

sector and of the deposit of Nambija indicates two types of important alteration:

1) A potash Alteration in the igneous rocks and piroclastics. This alteration

understands the replacement of the plagioclases, in the form of phenocrysts and
within the counterfoil, by a potash feldspars and by the epidote as well as the
replacement of the amphiboles for the biotite or the chlorite. The pyrite can be
introduced in the fractures.

The dyed of the samples with cobaltinitrito of sodium indicates that all the rocks
are altered, unless possibly the aplits, in those which the dye is presented weak.
The potash intensive alteration is manifested by a pink color alteration, beige or
gray pale in the counterfoil of the rock (#1056 a, 1056c, 1065 a, 1175, 1329c)
throughout the veins and fractures (#79 a, 209, 1033 a). The phenocrysts of
plagioclase are thoroughly replaced (1329c) or altered throughout the plans of
cleavage (#1056 to). The sample #1037b presents an potash alteration cut by a
sterile quartz vein.

2) Alteration of calco - silícea of the calcareous (exoskarns)and, in touch with the

exoskarns, a similar but limited alteration of the piroclastics (endoskarns). The
exoskarns are characterized by a trace assembly - silíce of grain means of green
color, beige or brown pale. The mineralogy and the paragenesis of the exoskarns
are described in the following chapter.

5.5 PARAGENETIC OF THE SKARNS COPPER

The primary skarns of Nambija present texture and simple mineralogy, with
an assembly of seed clinopiroxene of grain means. The garnet crystals (70%) are
mainly allotriomorfos and of 0.5 to 1mm of broad. Furthermore, the crystals have
concentric colored bands and they are anisotropics and distorted. The deformation
textures include you laminate and "kinks" of sobretensión, waved extinctions and
cataclastics textures (fracturación, brechificación). In a originating sample from the
surroundings Well Ramón (1329C) is observed a garnet isotropic idiomorfo that
replaces to the anisotrópicos garnets (photo 21), what indicates at least two garnet
generations, being the most subsequent youths to the deformation than there have
sobretensionado the precocious garnets. Chemically, the garnets are members of
the series of the solid solution grossular-andradite (C03(A1, Fe)2Si3012). The color
beige of the garnets suggests mainly the grossular, while the andradite is
customarily of obscure color. The clinopyroxenes (30%) are of the series diopsida-
salita, with allotrimorfos crystals of up to 0.5 mm of length that form
irregularmixed bulks with the garnet crystals. It is observed, they associated with
the diopside, about 1% of grains of pyrite and of chalcopyrite as well as trace of
calcite and of epidote. In the sample 1329C, the sphalerite (10%) fill the fractures
and provide the breccia characteristic to the garnets (photo 22). This texture
represents a removilization of mineralization primary associated with a
deformation.
 The primary assembly is retrogradado in a sample originating from Well
Ramón by an episode of zinc mineralization. The bulks of sphalerite that house
small incorporation of chalcopyrite and of galena (<0.1 mm of broad) are
associated with an assembly of pyrite - chancopyrite - calcite - quartz – chlorite -
tremolite - epidote.

The primary assembly of the skarns is also retrogrado for the episode of
auriferous mineralization. To megascopica scale are observed small lenses and
discontinue veins (tension fissures) of quartz – k-feldspar - calcite – hematite –
chlorite – zoisite – gold, that alter the skarn. The quartz, the hematite and the
zoisite fibrous replace to the garnet, while the calcite and the hematite replace to
the diopside. The pyrite is replaced by the hematite. The adularia is identified by
the morphology of the potash feldspars. This secondary assembly replace to the
primary minerals in the edge of the veins and also in the nets of microfracturas
present in the skarns. Small veins of late sericite cut the auriferous assembly.

The gold is found in the form of grains or of allotriomorfas bulks of 0.1 to

5mm of broad in the skarns altered or in the veins (photo 23). No silver-bearing
phase or other sulfurized phase has been observed in the veins, indicating that this
mineralizador episode is substantially monometalic.

The sample 70ª. Taken in the Bankrupt of the fierro, a located defect zone
outside of the zone of skarns auriferous, it is a skarn thoroughly retrogradado in an
assembly of chlorite - hematite - quartz -calcite. This sample is anomalous in gold
(1860 @@ppb Au) and is presumed that this alteration is the result, perhaps the
equivalent distal, of the episode of auriferous mineralization, though in native gold
and the adularia are absent.

In short, they are recognized three states of mineralization in the studied

samples (figure 16):

1) Primary Mineralization of pyrite - sphalerite - chalcopyrite continuing a

deformation of the assembly of skarn;
2) Secondary Mineralizacion of sphalerite - pyrite - chalcopyrite - galena that there
has retrogradado the assembly of skarn;

3) Auriferous Mineralization of the type lode that also there has retrogradado the
primary assembly. Though it can not be determined the paragenetic relationship
between the states 2 and 3, is presumed that the stadium 2 constitutes a secondary
mesothermal alteration of the skarn and that it is older than the episode of
auriferous mineralization.

5.6 DISCUSSION

The skarns of the region of Nambija present the characteristics of the calcics
skarns coppers. These characteristics include:

1) Mineralization of pyrite, pyrrhotite, chalcopyrite and sphalerite in a trace

bargain - silicea of garnet (andradite-grossular), diopside, wollastonite,
magnetite, etc.

2) Retrogradación of the primary skarns by late mesothermales processes.

3) Association to the trace calco - alkaline intrusions (diorite, granodiorite, Qz

monzonite).

4) Tapping of metasomatism of calcareous beds in the volcanic cogenetics

sequences (andesites, dacite).

5) Middle tectonic orogenic of continental arch (Einaudi et al., 1981; Einaudi

and Burt, 1982).

We think that the skarns studied are derived from a metasomatism of

calcareous observed in the volcanic sequence -sedimentary. The presence of
piroclastics altered is not unknown in means hydrothermales and the training of
skarns in the igneous rocks (endoskarns) is typically a local process (Einaudi et to
the., 1981; Meinert, 1986). The skarns of Nambija are poor in sulphurs (pyrite,
chalcopyrite, sphalerite late) and they are associated with an activity hydrothermal
apparently bound to the intrusions dioritics local. The alteration potash important
of the piroclastics, the volcanic and the intrusions subvolcanics is geographically
associated with the skrans and it is probably contemporary to the training of they.
The alteration potash of the igneous rocks or pelítics associated with the genesis of
the skarns coppers that is all right documented (Einaudi et to the., 1981; Carten,
1986; Wares 1986).

The auriferous mineralization is very rich in the skarns. The gold is presented
in native state, mainly housed in the discontinue veins that fill the tension fissures,
what represents a state of the type secondary lode that was seeming be
independent to the training of the skarns. The mineral assembly 2gico of the veins
indicates an epithermal episode (<300°C) of type adularia-sericita (Hayba, 1985),
while the skarns are normally formed at high temperatures (400°-600°C,
mesothermals conditions).

It has not been observed no auriferous mineralization in the volcanic rocks,

except for the piroclastics levels intercalated with the skarns. Alone have been
found quartz veins slightly pyritized that cut the potash alteration, what seems
particular because, customarily, the epithermals deposits of type adularia-sericite
are associated with defect zones or they are housed in a variety of lithologics,
mainly of volcanic calco - acaline. This type of mineralization is normally
deposited a million of years after the training of the hosted rock rocks. These facts
indicate that the structural controls on this epigenetic mineralization are more
important than the nature of the hosted rock rocks (Buchanan, 1981; Hayba, 1985).
Thus the auriferous mineralization of Nambija represents a particular situation
where the skarns have served as structural traps or, being rich in fierro, of
geochemicals traps where the structures have permitted an infiltration of the
bearing gold fluids. The receiving behavior of the lithologic ferríferas on the
auriferous bisulfurados fluids is documented for the trainings of fierro of the
Precámbric (Phillips et al., 1984), what can be relevant in relationship to the skarns
studied. At world level, the skarns of Nambija are compared with difficulty to the
skarns known, yet if these last have been formed in similar tectonic means
(Einaudi, 1981, 1982), already they will be the means of the oceanic arch or of the
orogenics continental edges (principal arch and hind arch). The "auriferous" skarns
are typically ferríferos or coppers skarns where the gold is extracted as by-product
from the development from the usual metals (Einaudi et al., 1981; Shimazaki,
1980; Mainert, 1986). These skarns are generally poor in gold (<3g/t ++Au) and the
metal form part of the primary mineralization or it is enriched in the polimetalics
mesothermals veins that alter the skarns. The auriferous mineralization is
frequently it associated with the pyrite nickelífera and cobaltífera in the ferríferos
skarns and with the small quantities of bornite/calcosina, arsenopyrite, sulphur of
bismuto, telururos or sulfosales in the coppers skarns. Table 5 summarizes the
characteristics of the exploited skarns by the usual metals and by the gold.

The auriferous deposits of the region of Nambija present a form of uncommon

mineralization. In Ecuador, as in the Peru, the mineralizations of usual metals of
type skarn and the polimetalics/auriferous mineralizations of the type epithermal
lode are found almost exclusively in the volcanic Mesozoics and Cenozoics of the
Western mountain chain (Petersen, 1965, 1977, 1979; Goossens, 1972, 1976).
Nambija constitutes then a discovery only of hydrothermal mineralization cutting
a calcic copper skarn.

The exact geological context of the region of Nambija stays uncertain, taking
into account the following facts:

1) The subandian zone is a waist ridden in active comprehension;

2) The volcanic - sedimentary band is limited by defects (where the in-depth

nature is unknown); the band defines a lineament NS according to the air
photograph;

3) The rocks within the band are not submitted to a metamorphism of contact.
We permitted ourselves to speculate that the band is housed in a thin
laminates ridden between two intrusives with important horizontal
displacement. The absence of metamorphism of contact excludes the
possibility of a gigantic enclave (roof pendant) within the batholiths. The
alkaline mixed nature/trace - alkaline of the volcanic compatible with the
training of a hind arch basin (graben) that in the origin was, probably, the
means of sequence accumulation volcanic - sedimentary

The Andean tectonic evolution consists of a successive stages overlapping of

compressions with foulding, inverse defects and intrusive magmatism followed
by extended periods characterized by the normal defects occurrence, development
of grabens and predominance of intrusive magmatism.

The singenetic deformation textures within the skarns (garnets

sobretensionados, epithermales veins within the tension fissures) attest the
deposits training in a means in comprehension state. This fact would explain the
overlapping of two types of mineralization (epithermal and skarn) in the deposits
if is speculated that, continuing the sequence training volcanic - sedimentary has
been transported at lithotectonics topmost levels, permitting the epithermal
mineralization under the conditions of <300°C and of <0.1 kb.

In resume, the auriferous mineralization of the skarns of Nambija is highly

secondary. These skarns are different of the auriferous typical skarns by virtue of
the wealth and of the monometalic and epithermal nature of the mineralization.
We concluded then in which the mineralization can not be classified as type "
auriferous skarn ", since it constitutes a auriferous epithermal mineralization
housed in a skarn.

This discovery is economic and geologically important because indicates the

existence of an economic potential for the epithermals auriferous deposits not only
in the subandian zone, but in the coppers skarns as a rule.

6. CONCLUSIONS AND RECOMMENDATIONS

6.1 CONCLUSIONS

From the geological point of view, is found a rocks volcanic -sedimentary guided
in direction NS of some kilometers of broad that houses to the auriferous
mineralizations. This band is found in the bosom of a batholith granodioritic
composition. The auriferous mineralization is associated with skarns and with
piroclastics fine rocks. The set is cut by dikes and small stocks of diorite, aplita and
subvolcanics rocks. Locally, they are observed also volcanic and late doleritas in
the defect and shear zones.
 From the metallogenic point of view, the auriferous mineralization in the
skarns of Nambija is highly secondary. These skarns are different of the auriferous
typical skarns by virtue of their wealth and of the monometalic and epithermal
nature of the mineralization. We concluded that the mineralization can not be
classified as of the type "skarn auriferous", since constitutes an auriferous
epithermal mineralization housed in a skarn and represents therefore a new style
of mineralization in the Andes.

From the geochemical point of view, the determination of the gold in the
concentrate materials to the bats seems us the most useful way prospectus gold in
the region. Three characteristic zones have been determined in this way (to see
recommendations). The geochemical of the rocks indicates us that the lead is
associated with the large defect zones(current phenomenon in the grabens zones)
and that the gold seems associated with arsenic in the favorable lithologcs related
to a structural control NW-SE.

The magnetometrics and electromagnetic geophysical raisings VLF have been

useful to help mapping the lithologics units, but not directly to recognize the
auriferous zones.

A summary inspection of the same deposit of Nambija leads us to believe that

the auriferous mineralization would be distributed in small rich lenses in gold in
the skarns, but also under the form of stockworks and would be associated with
the stocks and intrusive lode rocks as well as with the controls of structural order.

6.2 RECOMMENDATIONS

6.2.1 To effect an air photographic raising in order to produce a series of

airphotographics more detailed .

6.2.2 Photogeological study of these photos and regional mapped in order to

specifying the regional geological context, especially the extension of the
 band volcanic - sedimentary and the structure (especially the grabens and
the boilers).

6.2.3 Samples litogeochemical analysis for the potassium in order to

delimiting the alteration potash zones (those with a high relationship k :
Na).

6.2.4 Follow-up of the three (3) characteristic zones determined by the anomalous
gold presence in the heavy sediment samples: detailed mapped, closed
sampling of heavy sediments, litogeochemical sampling for the gold, the
sodium and the potassium. The skarns zones associated with the intrusive
rocks and of lineament in direction NW, the skarns are frequently about
tuffs to fine grain. In the corner SW of the recognition zone, the geological
characteristic zone possibly a phorphyry granitic.

6.2.5 Geophysical magnetrometric and electromagnetic raisings VLF on the

deposits known of Nambija, Cambana, Campanilla and Guaysimi in order
to determining if agreing to use these methods with the purpose of
exploration.
 ANNEX IV: GEOPHYSICAL REPORT

1. INTRODUCTION

In the area of the South - East project, of Ecuador, they have been effected
magnetrometrics raisings to total field, as well as electromagnetic raisings T.B.F.
(VLM-EM) from August 27 and October 1st, 1987. These raisings have been
effected with the principal purpose from obtaining basic information that serves of
support for the best geological knowledge of the earthly and also in order to seek
the geophysical evidence in relationship to the prolongation of the deposit of
Nambija southward, that is to say, within area where was developed our
investigations.

2. PERSONAL

In the raisings has participated the following personal:

- J. Stembera, geophysical responsible of the project.

- A. Bastien, technical.
- 2 Workers.

3. LOCATION

The geophysical mesh is located between the Bankrupt of the Fierro and the
North limit of the area of the project.

The site of the principal lines in direction East - West has been determined by
the presumed North - South direction of the general structures, accordant is
detached of the analysis of the air photographs, as well as by the distribution of the
field workers that they have accomplished before the arrival of the geophysical
equipment. It is important to indicate that, in some places, the site of the lines has
been influenced by the inaccessibility of the earthly.

4. ACCOMPLISHED PROJECTS

MagnetomEtrics raisings to total field: 15.0 km

Raisings VLF-EM, Station NAU :15.7 km

Station NLK :13.9 km

The readings have been taken each 12.5 m for the magnetomEtrics
raisings and each 25.0 m for the raisings.

The lines have been signaled with stakes located each 25.0 measured m
horizontally. The lines LB 0+00 have served as base to certify the mesh.

In order to have a fixed reference point for the successive workers, it has been
installed a concrete plate in the progressive 0+75E of the line LB 0+00.

5. RAISINGS MAGNETOMETRIC

5.1 Instrumentation

The magnetometric raisings has been executed with the aid of a nuclear procession
appliance, model G-856A of GEOMETRICS. To permit the due alterations to the
daytime variations, it has been installed in the place a base station that it has
operated during the execution of all the raising . The precision of the appliance is
of 0.5 gamma.
5.2 Results

The results were presented in the form of profile on a map of field total values
(Map E-1). Furthermore, is included a map of field total contours. The base level in
the profiles map is of 29500 gammas. The position of the magnetic bodies is
represented by a shaft that joins the center of the anomalies of each profile. The
lines 4+875N and the part North of the line 8+75E were not lifted due to technical
problems.

5.3 Interpretation

The magnetometric raising has revealed many zones with different magnetic
susceptibilities, indicating thus the existence of litostratified different units.

We indicate, at the same time, that the intensity variations are, as a rule,
between 100 and 500 gammas approximately. The magnetic relief in the West part
of the zone of the project is more stressed between the lines LB 0+00 and 2+00S of
the map E-1. the relief is composed of four (4) magnetic shafts - not. 1,2,3 and 4. the
intensity vary between 100 and 400 gammas and suggest the presence of a quite
physical means homogeneous (intrusive body) possibly shortened by dikes or
lavas washes. Seem also that this unit would be extended toward the East until
approximately 10+00W (above all between the lines LB O+OO and L 1+00S), being
associated to the conducting shaft T.B.F not. 3(Map E-3).

In the central part of the area of the project, between the lines LR 4+00W, and
8+00W, are observed two (2) magnetic shafts # 5 and 6 (Map E-1) with an intensity
of 200-400 gammas approximately. It should be to note that the shaft # 5 probably
it does not continue until the line 4+50S since the intensity on this line is less
strong, of the order of 100-150 gammas. The magnetic shaft # 7 (Map E-1) is not
associated with the mentioned shafts previously, being able to the same to
continue until the shaft # 5 on the line 2+00S. This possibility seems be reinforced
by the decreases magnetic intensity of its West flank that they can be observed
until the line 1+00S, suggesting thus the presence of a defect NW - SE, or the
presence of a dike with the same direction, in the prolongation of the outcrops of
basalt aclcaline trachytic observed in the Bankrupt # 5. The shafts # 8,9 and 10
(Map E-1) between the lines 3+50S and 4+50S delimit rocks of possibly volcanic
origin that present highly stronger susceptibilities than the rocks located to the
North, that is to say, between the lines LB 0+00 and 2+00S. This zone is extended
perhaps until 2+00E approximately (on the lines 3+50S and 4+50S) and their limit
is labeled by the magnetic shaft # 12.

It is observed, on the flank East of the shaft # 12 (Map E-1), a magnetic

depression of clean-looking continuity that is extended northward, to the
progressive 362.5E (L4+50S), 337.5E (L3+50S), 237.5E (L2+00S) and perhaps to
2+00E (l1+00S).

This zone would represent phyllitic rock bands limited on the flank East by
the magnetic shaft # 13 of the line L2+00S(Map E-1).

The magnetic shaft # 14 (Map E-1), with a nearby intensity to 200-400 gammas,
delimited probably the West flank of a intrusive is associated to the weak magnetic
intensity; it seems be recovered in its North extremity by the volcanic rocks, what
can explain the strongest intensity, of about 100 ranges, on the line 1+50N.

6. ELECTROMAGNETIC RAISINGS T.B.F.

6.1 Instrumentation

This raising has been accomplished simultaneously with the magnetic raising,
using an appliance CRONE RADEM of Crone Geophysics that permits to measure
the slope angle (dip angle) of the great shaft of the polarization ellipse. The
measures were taken each 25 m and immediately filtered and transformed
continuing the method FRASER. As source networks have been used two stations
T.B.F - Puerto Rico (NAU) to 28.5 kHz and Seattle, Washington (NLK) to 24.8 kHz.
Initially had been chosen the station Laulauli of Hawai, but it had to be abandoned
on account of its weak sign.
6.2 Results

The results obtained with the station NAU, that it was selected as principal
station, are presented in the form of a profiles map (Map E-3). The lines East - West
of the discussed raising mesh are in relationship to the direction given by the
network station. Additionally, the anomalies of the station PR are represented in
the form of contours (Map E-4) in a filter map Fraser on the slope angle (such as is
described in Geophysics, Vol. 34, 1969). For the interpretation of the results it has
adopted the convention of Crone. It should be to note that the values on the North
- South lines have been incorporated in the computer treatment of the contours,
causing thus a light certain anomalies displacement on the map Fraser, without
influencing, however, on the quality of the results. The network station SW has
been related to the North - South lines of the traced mesh (Map E-5). The lines
1+50N, 12+00W, 14+25W and a part of 1+00S have not been lifted on account of an
interruption in the sign of the station. One must to note that the quality of the
results of the station SW are not all satisfactory due to the weakness of the sign.
However, the obtained results have been incorporated in the report.

6.3 Interpretation

They have been identified seven (7) numbered different conducting zones of
the 1 to the 7 on the map Fraser of the station NAU (Map E-4), probably located in
the rock.

Conducting Zones 1 and 2

These two (2) conducting zones appear in the West corner of the area of the
project, between the lines LB0+00 and L2+00S (zone 1) and LB 0+00 and 4+50S
(zone 2). They correspond to the conducting shafts T.B.E 1, 2 and 3. The zone 1
reaches an intensity of 1 degrees Fraser and shows a good association with the
shafts of the magnetic bodies 1 and 2 (Map E-1) that represent magnetic intensity
of the order of 200 to 300 gammas. The type of the magnetic anomaly indicates that
would be tried to susceptibility contrasts either due to the lithologic abrupt
changes, those which can be indeed associated with a intrusive shortened by dikes
or to a zones of direction defects N-NE.
 The conducting zone 2 ( conducting shaft T.B.F. 3) show the strongest
intensity, of up to 25 degrees Fraser, that are associated with the weak magnetic
anomalies, next to 100 gammas. The conducting zones 1 and 2 should possibly to
indices of pyrite present in the intrusive rock and associated with the defect zones.

Conducting Zone 3

This zone is located between the lines LB 0+00 and 3+50S between 6+00 and
10+00W, continuing an direction NE-SO. The zone reaches 20 and 25 degrees of
intensity and it is represented by the conducting shafts T.B.F. 4 and 5 (Map E-3). In
some places (L12+00S and 3+50S between 6+00W - 9+00W) the zone shows direct
magnetic associations of 200 to 400 gammas that they are represented by the shafts
of the magnetic bodies 5 and 6 (Map E-1). it should be to note that the anomalies
T.B.F and magnetic are not extended until the line 4+50S.

Conducting Zone 4

This mean intensity zone (10 to 15 degrees Fraser) is located between the lines
3+50S and 4+50S in the level 6+00W. The zone seems be associated with magnetic
bodies shaft # 7 (Map E-1), with intensity of 200 to 300 gammas but of limited
extension. A lava mafic or a failed zone and mineralized in pyrite can be the origin
of this zone, whose West flank is adjacent to a magnetic intensity zone very
irregular (L 4+50S between 6+00W and 8+00W) that suggests the presence of a
failed zone.

Conducting Zone 5

East zone is limited by the lines LB 0+00 and 4+59S as well as by LR+00 in the
This and LR 4+00W. In some places, the zone reaches strong intensity that be at the
point 25 degrees Fraser and seems be divided in two (2) segments, the first on the
line 1+00S (0+50W) and the other between the lines 3+50S and 4+50S (20 degrees
Fraser). This zone is represented by the conductor # 9 (Map E-3) of clean-looking
continuity. However, its site on the line 2+00S (0+75W) is not all right identified.
The North segment of the zone does not correspond to no magnetic anomaly.

On the contrary, the South segment is associated to several magnetic intensity

anomalies media to strong, between 200 and 500 gammas, that they are
represented by the magnetic shafts 8, 9 and 10 (Map E-1). This characteristic would
indicate the presence of various lithologics types (volcanic and intrusive dikes).
The anomalies would correspond also this time to pyritized zones inside of these
rocks.

Considering what is mentioned previously, the most probable interpretation

of the conducting shaft #9 (Map E-3) would be that it is considered a defect,
probably mineralized, that there can in effect be the prolongation of the structures
that affect to the deposit of Nambija to the other side of the mountain. Within this
failed zone is returned to find, on the other hand, the very prompt presence of
skarn and of mineralization in pyrite.

Conducting Zone 6

This zone, of limited extension, sample high intensity that be at the point 30
degrees Fraser between the lines 3+50S and 4+50S between2+00 and 3+00E and
corresponds to the conducting shaft # 10 on the profiles map NAU (Map E-3). It
can be observed a direct association with the shaft of the magnetic body # 12 (Map
E-1). This conduct zone seems be located in the South extremity of a slightly zone
NO - SE that corresponded to the magnetic shaft # 12 (Map E-1) and quiz160s also
to the shaft # 11 (Map E-1). it should be not to forget that this zone is found within
shaft of the sinclinal bound structure to the deposit of Nambija.
Conducting Zone 7

This zone is located in the extremity East, between the lines 1+50N and 1+00S,
and presents hosiery intensity of 15 degrees Fraser. The zone does not correspond
to no meaningful magnetic anomaly, has a limited extension and it is probably
located to the middle of a intrusive structure.

7. CONCLUSIONS AND RECOMMENDATIONS

In how much concerns to the evaluation of this part of the area of the project
in relationship to the prolongation of the deposit of Nambija, it should be take into
account the following:

1) The geological raisings effected do not reveal the presence of auriferous

skarns neither in the adjacent zone to the deposit of Nambija nor in the
explored region, to exception of the skarn of the Well Ramón where two (2)
samples have gold contents moderately high.

2) The interpretation of the geochemical information does not

demonstrate no meaningful association between mineralization in gold and
mineralization of metal gold in the skarns investigated, what hinders the
election of appropriate geophysical methods.

The projects effected in the area of the project have permitted to detect seven (7)
conducting zones. Most of them demonstrates a good association with the
magnetic anomalies. The structural conclusions or lithostratigraphyc relevant to
each one of the zones are found in the par. 5.3 and 6.3 respectively.

In light of the mentioned reasons previously, two (2) zones of limited

importance could be taken in consideration for the contingent confirmation of the
projects. These are:
1) The conducting zone # 5 (Map E-4) defined by the conducting shaft T.B.F. #
9(Map E-3), in particular its segment between the lines LB 0+00 and L 2+00S, I
would be investigated insofar as the possibility of finding isolated zones of skarn
as well as to understand better the structural elements within this zone.

Methods of resistive such as the provoked polarization or the provoked spectral

polarization could be used. In the event of requiring in-depth investigation, they
could be taken in methods consideration magneto - telluric (AMT, CSAMT).

It is pointed out that the zones is decreased resistive would not have to be the most
interesting, since they could correspond to zones of mineralization in pyrite
(defects). These zones, yet if present anomalous values in gold, they are not
probably interesting from the economic point of view.

The investigation and the adequate interpretation of the rocks of high resistive
could also be hindered by the rocks presence with similar geophysical standards
(intrusive, piroclastic, etc).

2) The zone of skarn located between the well Ramón and the road Guaysimi
would be explored more in detail. They could be discovered thus the rich zone
mineralized in isolated gold. The task probably would be facilitated by the
meaningful mineralization in zinc that seems be associated with this skarn. The
population provoked in configuration dipolo-dipolo seems be the most
appropriate method.
OBSERVATIONS RELATED TO THE CONTINUATION OF THE
PROJECTS TO THE SOUTH OF THE BANKRUPT OF THE FIERRO

1) Lineament spaced each 100 m as maximum.

2) Magnetic Raising ( total field and gradient), not to identify the possible
extension of the deposit but rather to delimit the extension of the litológicas units.

3) Measure of the magnetic susceptibility directly on the rock samples in order to

facilitating the interpretation of the raisings magnetometrics.

4) Location of the structural lineaments (defects with pyrite) with the help of the
method EM-VLF.