La Gitana Project is a remotely located gold-silver mineralized zone that was
scarcely exploited during the nineteenth century. The prospect and surrounding areas
were selected for exploration after a geological evaluation carried out by Chesapeake
Gold Corp in August 2003 in a region that had been poorly explored.
La Gitana lies within Tertiary volcanic terrains of the Sierra Madre del Sur that
formed during the late Laramide orogeny. These are within the Oaxaca tectonic block
which is part of the North American tectonic plate.
La Gitana is a low-sulfidation Au-Ag epithermal system hosted within regional
faults dissecting andesitic and rhyodacitic rocks that are probably part of a dome
complex. The system consists of two main northwest-trending subparallel mineralized
corridors up to several kilometers long and at least 250 meters wide, the Cerro
Del Oro and La Gitana.
Precious metal mineralization occurs as quartz breccia-veins, quartz stockworks
and disseminations in silicified and argillized host rocks.