Geological Analysis of the

Shahuindo district, Cajabamba Province, Per

Plunge view of Algamarca anticline from Pampa de Arena; central zone of mineralized Shahuindo
corridor seen below left of anticline.

prepared by
Dr. Steven Bussey* and Dr. Eric P. Nelson**

*Western Mining Services LLC

**Colorado School of Mines
AIPG Certified Professional Geologist #CPG-11102

prepared for
Stphane Amireault
Sulliden Gold Corporation

9 November 2011

Confidential

Table of Contents
Executive Summary ............................................................................................................ 3
1
Introduction ................................................................................................................. 5
2
Methodology ............................................................................................................... 5
3
Observations ............................................................................................................... 7
3.1 Lithology .............................................................................................................. 7
3.1.1
Sedimentary Units......................................................................................... 8
3.1.2
Intrusions....................................................................................................... 9
3.1.3
Intrusive Breccia ......................................................................................... 12
3.1.4
Lithological controls on mineralization ...................................................... 14
3.2 Alteration and mineralization ............................................................................. 16
3.2.1
Pyrite and iron oxide ................................................................................... 16
3.2.2
Euhedral quartz druse ................................................................................. 19
3.2.3
Sericite and white clay (illite) ..................................................................... 20
3.2.4
Alunite......................................................................................................... 22
3.2.5
Jarosite and scorodite .................................................................................. 23
3.3 Structural geology .............................................................................................. 25
3.3.1
Tectonic and geologic setting ..................................................................... 25
3.3.2
Previous structural models .......................................................................... 25
3.3.3
Structure of fold-thrust belts ....................................................................... 25
3.3.4
General Shahuindo structure ....................................................................... 27
3.3.5
Structural domains in the Shahuindo district .............................................. 31
3.3.6
Breccias ....................................................................................................... 37
3.3.7
Breccia genetic interpretation ..................................................................... 38
3.3.8
Faults ........................................................................................................... 41
3.3.9
Igneous dikes .............................................................................................. 47
3.3.10 District structural model ............................................................................. 49
3.4 Reconnaissance studies - NW Anomaly ............................................................ 52
3.5 Reconnaissance studies - Zinc Anomaly ............................................................ 52
4
Synthesis Structural-Mineralization Model ........................................................... 53
4.1 Structural controls on mineralization ................................................................. 53
4.2 Intrusive centers ................................................................................................. 55
4.3 Metal zoning....................................................................................................... 56
5
Exploration guidelines .............................................................................................. 60
6
Recommendations ..................................................................................................... 61
6.1 Exploration recommendations............................................................................ 61
6.2 Procedural Recommendations ............................................................................ 61
7
References ................................................................................................................. 62
8
Appendix A Field Site Location Maps .................................................................. 63
9
Appendix B Structural Database............................................................................ 66
10 Appendix C Fold axis models ................................................................................ 67

Executive Summary
Sulliden Gold Corporation (Sulliden) retained Western Mining Services (WMS) to
evaluate district- and deposit-scale hydrothermal alteration and structural geology in
mineral concessions controlled by Sulliden covering the Shahuindo project in Cajabamba
Province in northern Per. The purpose of the study was to improve the geologic model
of the Shahuindo deposit and to identify geological features that could assist in the
evaluation of exploration opportunities in the region. Dr. Steven Bussey of Western
Mining Services and Dr. Eric Nelson of the Colorado School of Mines (a subcontractor
for WMS) performed the field geological study of the Shahuindo district from 16
September to 4 October 2011.
Systematic field mapping methods were employed along two NE-SW traverses across the
main mineralized corridor at Shahuindo. In addition, 1-day field visits were made to
specific satellite projects around the main Shahuindo corridor including the North
Corridor, the Northwest Anomaly, and the Zinc Anomaly Zone.
The Shahuindo district occurs within the Eocene fold-thrust belt of northern Peru that
formed during the Incaic II orogeny at ~43 Ma. The district occurs along a localized belt
of Miocene (~16 Ma) intrusions that is mostly parallel to the dominant structural grain in
the fold-thrust belt. Mineralization appears to have formed in association with dacitic to
rhyolitic magmatism and emplacement of related high-energy diatreme breccias.
Five non-breccia intrusive phases and three intrusive breccia phases are recognized.
Three main intrusive centers are present in the district: 1) along the main Shahuindo
mineralized belt, 2) just west of the North Corridor Area, and 3) in the Zinc Anomaly
Zone. Each intrusive center is characterized by bodies of diatreme or heterolithic breccia
that postdate emplacement of dacite porphyry and andesite.
The best mappable evidence of mineralization in oxidized and weathered rocks at surface
includes the presence of voids and crystal molds after pyrite and other sulfides (especially
when the original pyrite content is estimated to be >10%), and the presence of crystalline
white clay or sericite. Field evidence indicates that important controls on mineralization
include fold limbs and fold axial surfaces, fold-related fractures, faults and related
extension fractures, irregular breccia bodies and breccia dikes, and igneous intrusive
contacts.
The principal mineralized zone at Shahuindo includes the San Jos fault and occurs in a
NW-trending belt between two large-amplitude regional-scale folds, the Algamarca
upright anticline and the Pampa de Arena overturned anticline. These folds form a large
anticlinorium or box-fold structure that has an exceptional outcrop belt width between
two regional-scale synclines. It is hypothesized that the Algamarca fold formed over the
tip of a propagating fault that splayed off of a major detachment, and that this splay was
localized over a basin architecture normal fault in the basement. The location of the San
Jos fault, and thus the main Shahuindo corridor, is hypothesized to have been controlled
by the NW-striking basement fault that also controlled the orientation of structures in the

fold-thrust belt. This normal fault was reactivated in the Miocene and controlled
intrusion of the dacite porphyry, the adjacent breccia complex, and much of the
mineralization along the Shahuindo corridor.
Sulfide mineralogy and associated alteration indicates the Algamarca-Shahuindo district
is a Cordilleran-type polymetallic epithermal system such as Tantahuatay or Colquijirca.
In particular, Shahuindo belongs to a sub-class of this deposit type, first described by
Montoya et al. (1995) and referred to as sandstone-hosted gold deposits. Pyritetetrahedrite-tennantite-covellite mineralization is associated with an early alteration
assemblage of alunite-pyrophyllite-diaspore and is cut by veinlets of pyrite, sphalerite,
galena and stibnite associated with quartz-illite. Gold mineralization in the main corridor
at Shahuindo seems to be associated with the late quartz-illite event.

Introduction

Sulliden Gold Corporation (Sulliden) retained Western Mining Services (WMS) to

evaluate district- and deposit-scale hydrothermal alteration and structural geology in
mineral concessions controlled by Sulliden covering the Shahuindo project in Cajabamba
Province in northern Per. The purpose of the study was to improve the geologic model
of the Shahuindo deposit and to identify geological features that could assist in the
evaluation of exploration opportunities in the region. Dr. Steven Bussey of Western
Mining Services and Dr. Eric Nelson of the Colorado School of Mines (a subcontractor
for WMS) performed the field geological study of the Shahuindo district from 16
September to 4 October 2011 (Table 1). Yvan Espinoza and a number of site geologists
are acknowledged for their help in understanding the geologic framework of the area and
for field guidance. Ore shell models were reviewed with the help of Paul Tietz.
16 September
17 September
18 September
19 September
20 September
21 September
22 September
23 September
24 September
25 September
26 September
27 September
28 September
29 September
30 September
1 October
2 October
3 October
4 October
5 October

Travel Cajamarca-Shahuindo; field reconnaissance with William Chilon

Morning review of maps, sections, and ore shell models; afternoon field work in Moyan Alto
Field work, West zone SW margin of main dacite intrusion
Field work, West zone
Field work, East zone Quebrada Choloque (NE sector)
Field work, East zone Quebrada Choloque (central sector)
Field work, Moyan
Field work, Alto Redondo
Field work, Cerro Redondo
Field work, NE of West zone
Field work, Central zone
Field work, Pampa de Arena-Corridor Norte transect
Data compilation and analysis
Field work, North Corridor reconnaissance
Field work, NW Anomaly reconnaissance
Field work, ZN Anomaly reconnaissance
Data analysis, presentation preparation
Field trip and presentation of preliminary observations and geological interpretation
Travel Shahuindo-Cajamarca; core study
Travel Cajamarca-Lima

Table 1. Schedule of activities and field areas studied.

Methodology

Drs. Bussey and Nelson worked as a synergistic team offering expertise in

mineralization-alteration systems and structural geology, respectively. Although each
collected individual GPS field site locations where geological observations and structural
data were collected, Bussey and Nelson visited all field sites together. Nelson recorded
317 field site locations and Bussey recorded 221 locations. Systematic field mapping
methods were employed along two NE-SW traverses across the main mineralized
corridor at Shahuindo. In addition, 1-day field visits were made to specific satellite
projects around the main Shahuindo corridor including the North Corridor, the Northwest
Anomaly, and the Zinc Anomaly (Fig. 1). All geographic data were collected in the
datum and map projection used by Sulliden for the project: PSAD 1956, UTM Zone 17

South. All maps shown in this report were prepared using the same datum and
projection.
Lithology was mapped only in reconnaissance fashion to field check the geologic map
currently available to Sulliden, to develop a model for the location of formational
boundaries, and to place detailed alteration and mineralization mapping in the context of
lithologic observations. Field and core observations were made and interpreted in the
context of existing data (geological and geophysical maps, core logging, and geochemical
data) and previous reports (e.g., Alvarez, 2010; Hodder, 2010a, 2010b; Hodder et al.,
2010).
Nelson collected approximately 477 structural measurements which were stored in Excel
spreadsheet format (see Appendix B). Structural data for planes are presented in the
report in right-hand-rule (RHR) format, in which azimuthal strike (0-360) is
counterclockwise from dip direction (strike/dip = xxx/xx). Structural data for lines
such as fault slickenlines and fold axes are presented in the report as plunge/trend
(xx/xxx). In the structural database, lines are presented in two other formats: 1) rake
format (0-90) measured in the fault plane from the strike line, 2) RHR rake format (0180) measured in the fault plane from the RHR strike direction. Lower hemisphere equal
area projection plots (stereonets) are used to illustrate structural orientation data and to
determine mean orientations of data sets.

Figure 1. Map showing named zones within the Shahuindo district.

Observations

Lithological observations are presented first, as lithology played an important role in

controlling alteration, mineralization, and structure. The lithology section is followed by
description of alteration and mineralization features, and finally structural geology.
3.1

Lithology

Sulliden geologists have done a good job of outcrop mapping, and have presented a
model for an interpretative lithological map. However, no attempt has been made to
assign formations to the mapped lithological interpretation in the Goyllarisquizga Group.
In order to understand the larger structural setting of the district and for the purpose of
making district-scale cross sections, we made a preliminary geological map showing our
interpretation of the distribution of formational units within the Shahuindo district (Fig.
2). This formational map model needs to be improved by Sulliden geologists most
familiar with the stratigraphic section.

Figure 2. Preliminary geologic map with formational contacts inferred from field mapping and Sullidens
lithology interpretation map.

3.1.1

Sedimentary Units

Regional geologic mapping in this part of Per (Rivera, 1980) indicates that the
Shahuindo concession is underlain by sedimentary rocks of the Goyllarisquizga Group
(Fig. 3). The upper Chim Formation, well-exposed in the Algamarca anticline, consists
of very thickly bedded sandstone that has been silicified to become quartzite. The
overlying Santa Formation consists of mudstone with intercalations of limestone. It is
exposed on the flanks of the Algamarca anticline with good exposures along the road
above the informal miners (Chilca Zone) just before reaching the pass leading down to
Algamarca. The Carhuaz Formation consists of interbedded sandstone, siltstone, and
mudstone, with many sandstones displaying cross bedding and amalgamated wedgeshaped sandstone beds. It is the principal host for gold mineralization in the main
corridor at Shahuindo. The Farrat Formation consists of cliff-forming siliciclastic strata
dominated by sandstone. It lies mostly in the northern part of the property and is the host
to gold mineralization in the North Corridor.

Figure 3. Regional stratigraphic column showing position of dominant Shahuindo mineralization and other
nearby deposits (from Alvarez, 2010).

Importantly, a number of stratigraphic facing criteria were observed in the Carhuaz and
Farrat Formations. These include tangential cross bedding, ripple cross bedding,
channels, and load structures (Fig. 4). Sulliden geologists should learn to recognize these
sedimentological features and assign stratigraphic facing (upright or overturned) to
outcrops during mapping or even reconnaissance, as such information is critical in
refining structural models.

Figure 4. Annotated photographs illustrating sedimentological features useful for determining

stratigraphic facing (depositional up). A. Tangential (at base) cross bedding (site EN-317). B. Load
casts or channels on base of sandstone bed (site EN-128). C.-D. Channel in overturned fold limb (site
EN-214). E. Load casts on vertical bed in Pampa de Arena overturned anticline (site EN-275).

3.1.2

Intrusions

Intrusions recognized by previous mapping in the Shahuindo area include rocks described
as andesite, dacite porphyry, and intrusion breccia. The digital geologic map we were
provided classifies the intrusive rocks as argillized, non-argillized, carbonate-altered, or
undifferentiated porphyry. The map also includes a similar subdivision of igneous
breccia, including undifferentiated, argillized, non-argillized, and carbonate-altered.
Based on our field mapping we recognize five non-breccia intrusive phases and three
9

distinct intrusive breccia phases. We feel there is an opportunity to improve the geologic
understanding of the district by carefully mapping the distribution of these intrusive
phases and separating lithology from alteration.
The five non-breccia intrusive phases recognized by WMS are diorite porphyry (known
as andesite in the district), dacite porphyry, fine-grained dacite porphyry, quartz diorite
porphyry, and foliated quartz diorite porphyry. The distribution of the five intrusion
types (Fig. 5) is based on our field observations and the assumption that areas not visited
are accurately mapped by Sulliden geologists. Mapped intrusions that we did not observe
in the field are included in the undifferentiated intrusion class. The three intrusive
breccia phases are heterolithic breccia with biotite diorite matrix, heterolithic breccia with
fine-grained dacite matrix, and heterolithic megabreccia with foliated quartz-biotite
dacite matrix.

Figure 5. Map showing the inferred distribution of non-breccia intrusions in the Shahuindo project
area.

10

Diorite porphyry (andesite) was observed in the southeast part of the main Shahuindo
corridor and is inferred to be present on the northeast side of the Algamarca anticline and
in the northeast part of the North Corridor zone (Fig. 5) based on other mapping and
discussion with company geologists. The map pattern of the intrusion indicates
emplacement mostly as sills in the Goyllarisquizga Group units. It is characterized by
large (8 mm diameter) biotite phenocrysts, a lack of quartz, and has no evidence of
hydrothermal alteration where seen in the field, although it is deeply weathered. In
addition to biotite, it has a high percentage of large plagioclase and hornblende
phenocrysts. Given its coarse grain size it could perhaps more properly be called diorite
porphyry (or hornblende-biotite diorite porphyry). An isotopic age determination is
reported to have been made (thought to be zircon U-Pb) on this intrusion and yielded an
age of ~26 Ma.
The dacite porphyry is characterized by 1 cm bipyramidal quartz phenocrysts, with
biotite and plagioclase phenocrysts in an aphanititc groundmass. It is the most
widespread intrusion in the Shahuindo district and is argillically altered wherever
observed. The map distribution indicates that much of the dacite porphyry was emplaced
as sills concordant to bedding in the Goyllarisquizga Group (Fig. 5). Nonetheless, the
principal intrusion along the main Shahuindo corridor is a composite dike-like body with
relatively steep discordant contacts, as is the dacite porphyry intrusion on the SW limb of
the Algamarca anticline. Intrusions in the north part of the main Shahuindo corridor
(West Zone) are larger and must have partially stoped wall rock or were forcibly
emplaced. The large dacite porphyry body in the north part of the main corridor splays to
the southeast into a series of dikes that narrow and disappear beneath cover in the Central
Zone. They have not been mapped in the East or Moyan Zones. An isotopic age
determination is reported to have been made (thought to be zircon U-Pb) on this intrusion
and yielded an age of ~16 Ma.
Fine-grained dacite porphyry is characterized by 3 mm quartz phenocrysts, often
rounded, along with plagioclase and biotite phenocrysts. It looks very similar to the
dacite porphyry but has fewer quartz phenocrysts, the size of all phenocrysts in smaller,
and it has a slightly higher percentage of groundmass. It was only recognized at one site
in the West Zone where it is completely altered to a quartz-illite assemblage. This unit is
suspected to be the rock that forms the igneous component of the heterolithic breccia with
fine-grained dacite matrix; its distribution is discussed later in the report.
Quartz diorite porphyry is characterized by 1 cm bipyramidal quartz phenocrysts along
with biotite and plagioclase phenocrysts. It is very similar to the dacite porphyry in terms
of grain-size and phenocryst type and content, but this rock is unaltered. It was noted in
the North Corridor area where it occurs adjacent and internal to the crescent-shaped body
of heterolithic breccia with biotite diorite matrix (Fig. 5). Clasts of altered dacite
porphyry in the heterolithic breccia suggest that the quartz diorite porphyry is a younger
intrusion. However, the contact between quartz diorite porphyry and dacite porphyry was
not observed so the age relationship between the two units is speculative.

11

Foliated quartz diorite porphyry is characterized by about 50% phenocrysts of quartz and
5 mm-diameter biotite and plagioclase phenocrysts in a fine-grained groundmass. Where
unaltered the rock is magnetic due to disseminated accessory magnetite. It was
recognized only in the Zinc Anomaly Zone where it occurs along a prominent northwesttrending ridge. Foliation is defined by alignment of biotite phenocrysts and, to a lesser
extent, plagioclase phenocrysts. Where observed in outcrop the foliation has variable
orientation, but is often steep and parallel to the margin of the igneous matrix
megabreccia which it surrounds suggesting foliation formed due to upward flow of
magma. The two small bodies of foliated quartz biotite porphyry shown in the extreme
northwest corner of the map were not visited. They are inferred to be foliated quartz
diorite porphyry based on the fact that they are part of the same map unit that we mapped
as foliated quartz diorite porphyry a few hundred meters to the southeast. However, these
two small intrusions occur within areas of strongly anomalous soil geochemistry
suggesting they are altered and mineralized, unlike the foliated quartz diorite porphyry
body that we observed which is unaltered and distinctly lacks any geochemical anomaly.
3.1.3

Intrusive Breccia

Three intrusive breccia phases are recognized on the property and include heterolithic
biotite diorite breccia, heterolithic fine-grained dacite breccia, and heterolithic
megabreccia.
Heterolithic fine-grained dacite breccia was recognized during mapping in the main
Shahuindo corridor. It occurs as narrow dike-like bodies, no more than 3 meters in width,
with rounded to subangular clasts up to 10 cm in diameter of sandstone, siltstone, dacite
porphyry, and rare shale, in a matrix of fine-grained lithic clasts and clay with 1-3 mm
quartz, biotite, and plagioclase crystals. The clay component of the matrix is thought to
be argillically altered juvenile igneous material that is most similar to the fine-grained
dacite porphyry with which it is often spatially associated. Locations where the breccia
was noted in outcrop are shown on figure 6. Most of the locations are in the West Zone
with two sites in the Central Zone; this breccia also was noted in core. In drill hole
SH10-172 from the Central Zone, heterolithic fine-grained dacite breccia contains
fragments of sedimentary rock mineralized with pyrite, sphalerite, quartz, and white clay,
indicating that the breccia is younger than at least one stage of mineralization and that
additional mineralized rock may be present at depth.

12

Figure 6. Map showing the inferred distribution of intrusion breccia in the Shahuindo project area.

Heterolithic biotite diorite breccia is a matrix-supported breccia characterized by clasts of

sandstone, siltstone, shale, and dacite porphyry that range in size from mms to 30 cm.
The matrix is a mixture of sand-sized lithic clasts with biotite and plagioclase crystals.
Juvenile igneous material is thought to be represented by small wispy fragments now
altered to clay. Quartz crystals are rare and thought to be xenocrysts derived from clasts
of dacite porphyry. Where unaltered, the rock is tan to light brown in color and easily
weathered. It is recognized in two locations on the property: in the Zinc Anomaly Zone
and just south of the North Corridor. In the Zinc Anomaly Zone it forms an irregularshaped body 1 km in diameter. The body just south of the North Corridor Zone forms an
angular concentric-shape around the north side of the quartz-biotite porphyry which
appears to have intruded the breccia. At this location the breccia appears to surround two
or more very large fragments of limestone 100 m wide and 100s of meters long near its
outer margin. Heterolithic biotite diorite breccia is interpreted to be a diatreme breccia
formed by explosive eruption of biotite diorite magma. The large limestone blocks in the

13

breccia near the North Corridor are thought to be fragments of the overlying Chulec
Formation that collapsed into the vent of the diatreme as the eruption ended.
Heterolithic megabreccia is the name given to a breccia body in the Zinc Anomaly Zone
that contains rock clasts over 10 meters in diameter in a matrix of foliated quartz diorite
porphyry (described above). The clasts include fine-grained volcanic rock and various
sedimentary rock types. Foliation in the matrix is defined by alignment of biotite crystals
and wispy fiamme-like patches. Foliation is mostly steep to vertical, with variable strike
that locally changes abruptly suggesting rotated blocks within the breccia. Only a portion
of this unit was traversed so the foliation orientation across much of the unit is unknown.
The breccia is not altered and is magnetic due to the presence of disseminated primary
magnetite.

Figure 7. Photograph of andesite(red pattern) that intruded the core of a fold and is cut by an altered
dacite dike(yellow outline) in the North Corridor.

The oldest intrusions in the district, diorite porphyry (andesite) and dacite porphyry,
were mostly emplaced as concordant bodies parallel to bedding in folded units of the
Goyllarisquizga Group. Later intrusive phases, including the fine-grained dacite
porphyry, quartz diorite porphyry, foliated quartz diorite porphyry, and all the igneous
breccias, were emplaced as discordant bodies in the form of dikes, stocks or plugs. This
suggests a change in style of emplacement from an early, more passive style to later more
forceful emplacement. Evidence of the difference in emplacement style can be seen in
the North Corridor Zone where andesite, emplaced as a sill within the core of the Pampa
de Arena anticline, was cut by a later dacite dike (Fig. 7). Such a change in emplacement
style may be related to a changing tectonic stress field and/or the composition and
rheology of magmas.
3.1.4

Lithological controls on mineralization

The stratigraphic column in the Shahuindo district (in Alvarez, 2010; Fig. 3) shows that
the upper Carhuaz Formation is the principal stratigraphic unit that is mineralized.

14

However, mineralized rock in the Algamarca, North Corridor, NWAnomaly, and Zn

Anomaly areas indicates that other formations have exploration potential, including the
Chim, Farrat, and volcanic or intrusive rocks. This exploration potential is supported by
the fact that other epithermal deposits in the region are hosted in numerous other
stratigraphic units (Fig. 3).
Whereas sedimentologically mature (permeable) sandstone within the Carhuaz Formation
is typically silicified (now quartzite), surrounding siltstone and shale are relatively
unsilicified. Fibrous, milky quartz veinlets are locally present in the quartzite beds (Fig.
8c, d), and formed as the beds fractured, either during diagenetic burial compaction or
during flexural slip folding associated with Eocene crustal shortening. The presence
locally of bedding-parallel stylolites that truncate steeply dipping quartz veinlets (Fig. 8a,
b) indicates that some silicification occurred during Cretaceous burial diagenesis.
Silicification made sandstones preferentially brittle and prone to fracturing, and led to
strong lithological and structural control during Miocene mineralization in the Chim,
Carhuaz, and Farrat Formations.

Figure 8. Photographs of bedding-parallel stylolites and en echelon, fibrous, milky quartz veins. A. Graphitefilled stylolite, Chim quartzite (Algamarca townsite mine dump); graphite may have originated as
hydrocarbon. B. Stylolites (site EN-129). C. En echelon quartz veinlet array; bedding horizontal (site EN179). D. Close-up of stylolite truncating quartz veinlets in (C).

15

3.2

Alteration and mineralization

Mappable evidence of mineralization in oxidized and weathered rocks at surface includes

the presence of voids and crystal molds after pyrite and other sulfides, the presence of
iron oxide in boxwork textures after sulfides or as limonitic or gossanous coatings, the
presence of fine-grained euhedral quartz druse as veinlets and vugs in brecciated zones,
the presence of crystalline white clay or sericite, and the presence of alunite, jarosite, or
scorodite in veins and veinlets (Fig. 9).
3.2.1

Pyrite and iron oxide

Pyrite veinlets, especially those in sedimentary rock preserved by silicification, are

readily apparent in outcrops and roadcuts on the property. When pyrite crystals are wellformed, it is possible to make a reasonably accurate estimate of the amount of pyrite
present in the rock before weathering and oxidation. Such an estimate was made at
nearly each of the field sites and results are shown in Fig. 10a.
The quantity of iron oxide in the form of gossan, limonitic coatings along fractures and in
veins, or disseminated in a rock, also can give information about the quantity of pyrite
originally present in a rock. A relative quantification was made at nearly every field site
and results are shown in Fig 10b. However, because iron is soluble in acidic water and
can be transported and deposited as iron oxide away from the site of the original sulfide,
care needs to be taken when interpreting iron oxide abundance data.
Estimates of original pyrite content are much higher in the East Zone than in the West
Zone (Fig. 10a), despite the fact that there is no significant difference in gold content
between the two zones. Estimates of iron oxide content in the West and East Zones are
similar although iron oxide is more widely distributed in the East Zone. Evidence for the
presence of very fine-grained pyrite, especially when disseminated in sandstone, is very
difficult to recognize in outcrop. One explanation for the difference in estimates of
original pyrite in the two zones could be a systematic increase in the grain size of pyrite
from west to east. This could be due to rapid deposition of pyrite resulting in finer grain
size in the west and slower crystallization of coarser pyrite in the east. This would imply
that hydrothermal fluids were hotter in the west and cooler in the east and that there may
have been a component of hydrothermal fluid flow from northwest to southeast across the
district. Alternatively, it could be there is more siltstone and shale host rock in the east
than in the west, and mineralization in siltstone/shale results in coarser pyrite crystals.
Estimates of pyrite content appear to show good correlation to the mineralized corridor at
Shahuindo, especially when combined with estimates of iron oxide content. Changes in
the grain size of pyrite may also provide information about zoning within the
hydrothermal system.

16

Figure 9. Photographs of voids and molds of pyrite crystals now oxidized and weathered away and
corresponding pyrite textures from unoxidized core. A. Sandstone with pyrite shapes preserved in vugs
along discontinuous veinlets, and in fine-grained disseminations (outcrop in East Zone). B.
Discontinuous pyrite veinlets and disseminated pyrite from drill hole SH10-111, 138 m in the Central
Zone. C. Pyrite crystal molds along bedding in silicified siltstone from outcrop in Moyan Alto Zone. D.
Coarse-grained pyrite crystals along bedding in siltstone from drill hole SH10-111, 159 m in the Central
Zone.

17

Figure 10. A. Map of main corridor showing mineralized zones from Surpac Au-grade model projected
to surface (yellow: 0.7-2.5 g/t, orange: 2.5-6 g/t, red: >6 g/t) and point estimates of original pyrite content
in outcrop. B. Map of main corridor showing mineralized zones from resource model and qualitative
estimates of iron oxide abundance in outcrop.

18

3.2.2

Euhedral quartz druse

Mineralization in the main corridor of the Shahuindo property is characterized by quartz

veinlets 1 5 mm in width that often have very fine-grained comb quartz layers (Fig. 11).
Quartz veinlets locally grade into narrow breccia zones which can have euhedral quartz
druse lining cavities. Euhedral quartz is normally associated with intermediate- or lowsulfidation epithermal vein systems rather than high-sulfidation systems. Quartz veinlets
cross-cut pure pyrite veinlets indicting they formed during a later stage of mineralization.

Figure 11. Photographs of euhedral quartz veinlets and druse from Shahuindo property. A. Sandstone
with fine-grained euhedral quartz as crustifom bands in veinlets and as druse in breccia matrix; late
jarosite is also present (East Zone). B. Euhedral quartz with hematitic iron oxide stain on clast of
sandstone in breccia (West Zone). C. Quartz-pyrite veinlets, disseminated pyrite, and euhedral quartz in
vugs in unoxidized sandstone (drill hole SH11-220, 245 m in West Zone).

The presence or absence of euhedral quartz druse in either veinlets or open-space in

breccia was recorded at each field site and the distribution map is shown in Fig. 12. In
general, the occurrence of euhedral quartz druse correlates with gold mineralization.
However, euhedral quartz extends beyond the main mineralized Shahuindo belt north of
West Zone, and both north and south of the belt in the East Zone. Euhedral quartz
veinlets also are present in the Northwest Anomaly Zone and in samples from the
Algamarca area.
Based on study of thin-sections, Hodder (2010a) described both dissolution of quartz
grains and deposition of cryptocrystalline to fine-grained quartz around primary quartz
grains in mineralized clastic rocks. Early dissolution of quartz grains by acidic
hydrothermal fluids is possible, resulting in a rock that could technically be called vuggy
quartz. In outcrop, the dissolution and reprecipitation textures have resulted in giving
clastic rocks a quartzite-like texture. However, these textures are not restricted to the
mineralized zones and may reflect diagenetic or structurally-induced processes related to
compressional deformation in the Eocene. Completely silicified siltstone or shale was
rarely observed in the field, and jasperoid silica replacement of limestone was not noted.
Silicification in the form of quartzite-like texture is only observed in sandstone and this is
thought to be a function of the original porosity and permeability of this lithology.

19

Figure 12. Map of the main Shahuindo corridor showing contours of ore grade from Surpac Au-grade
model projected to surface (yellow: 0.7-2.5 g/t, orange: 2.5-6 g/t, red: >6 g/t) and sites where euhedral
quartz is present in outcrop.

3.2.3

Sericite and white clay (illite)

White clay was noted in some quartz veinlets, in altered sandstones, in the matrix of
some breccias, and in narrow clay veinlets (Fig. 13). It can be very difficult to identify
specific clay minerals using only a hand lens. In general, veinlets of pure white clay
typically consist of pyrophyllite, as seen in outcrop at North Corridor Zone. Hodder
(2010a) reported the presence of pyrophyllite in thin sections from samples of Central,
East and Moyan Alto Zones. Significant occurrences of white clay should be sampled for
TerraSpec analysis (as was done at North Corridor) to confirm field identification. White
clay associated with euhedral quartz druse is probably illite and this is the only white clay
confidently identified in outcrop during this study. This is supported by several
occurrences of sericite (coarse-grained illite) associated with fine-grained euhedral quartz
veinlets. This assemblage is typically deposited under pH neutral to weakly acidic
conditions. Microprobe and thin section studies by Hodder (2010a) confirm that illite
and fine-grained muscovite (sericite) is the dominant white clay mineral in samples from
the main corridor at Shahuindo. He also documented a systematic change in the
composition of illite from early formed phengite to end-member muscovite.

20

Figure 13. Photographs of illite in outcrop and core. A. Illite in sandstone from East Zone; arrow
points to light grey band where crystalline illite can be seen with hand lens. B. Arrow points to sericite
(coarse-grained illite) in quartz veinlet from outcrop just above town of Algamarca. C. Pyrite-quartz
altered sandstone with illite in breccia voids (SH11-220, 195 m). D. Illite-altered dacite porphyry from
West Zone; arrows point to illite-altered plagioclase phenocrysts (there are many) with concentric
fractures due to volume decrease as a result of alteration of original smectite to crystalline illite.

Illite is also inferred to have formed in the dacite porphyry adjacent to mineralized
sedimentary rocks of the Goyllarisquizga Group (Fig. 13d). Evidence for this is the
variation in hardness of dacite porphyry in contact with mineralized and brecciated
sedimentary rock. Within 2 to 10 meters of the contact the porphyry is slightly harder
than argillically altered porphyry more distant from the contact. In addition, within this 2
to 10 meter zone, plagioclase phenocrysts altered to illite often display fine concentric
fractures due to volume loss associated with the change from original clay mineral to
crystalline illite. Illite was confidently identified at only six sites (Fig. 14) where actual
books or plates of white clay could be seen with a hand lens. However, a zone of illite
alteration is inferred to extend along the main Shahuindo mineralized corridor (Fig. 14).
Relatively coarse-grained sericite, similar to that shown in Fig. 13b, was seen in core hole
SH10-172 at a depth of 212.8 meters, and it is likely that sericite is present throughout the
main Shahuindo corridor. Cross-cutting relationships indicate illite/sericite was
deposited late in the sequence of events at Shahuindo.

21

Figure 14. Map of the main Shahuindo corridor showing ore grade contours from Surpac Au-grade
model projected to surface (yellow: 0.7-2.5 g/t, orange: 2.5-6 g/t, red: >6 g/t), sites where illite clay was
noted in outcrop, and the inferred extent of illite alteration.

3.2.4

Alunite

In outcrop, alunite occurs as porcelaneous veins and veinlets in both dacite porphyry and
sedimentary rock (Fig. 15). It never occurs with quartz and is hosted in illite-altered
rock. It was recognized in road cut exposures at two sites in the Central Zone and one
site in Moyan where it occurs in altered dacite porphyry and siltstone/shale

Figure 15. Photographs of alunite in outcrop and core. A. Alunite veins (arrows) in altered dacite
porphyry exposed in road cut (Central Zone). B. Alunite veins in siltstone exposed in road cut (Central
Zone). C. Cut core showing alunite vein (arrow) in siltstone clast in breccia (SH10-172, 211.6 m).

22

Figure 16. Map of the main Shahuindo corridor showing mineralized zones from Surpac Au-grade
model projected to surface (yellow: 0.7-2.5 g/t, orange: 2.5-6 g/t, red: >6 g/t) and sites where alunite was
noted in outcrop; alunite sites are surrounded with black dashed line.

lithologies (Fig. 16). These lithologies tend to be soft and easily weathered which may
explain the low number of observations. These same lithologies also are the most
aluminous in composition and may have provided much of the aluminum needed to form
alunite. A fragment of alunite-veined siltstone within heterolithic fine-grained dacite
breccia can be seen in core (Central Zone SH10-172 at 211.6 meters) and indicates that
alunite veins formed prior to development of the breccia. Hodder (2010a) notes that
alunite, along with minor pyrophyllite and diaspore is most common in the East Zone and
the sub-zones of Pampa de Arena and Moyan Alto. Although no alunite was observed in
outcrop in the West Zone, an alunite vein in dacite porphyry was noted in SH11-220
(West Zone) at 249 meters. Alunite occurrences in drill hole should be compiled to
determine if alunite is actually more common in the southeastern part of the main
Shahuindo corridor.
3.2.5

Jarosite and scorodite

Jarosite forms in acidic environments usually due to oxidation of pyrite-rich rocks in the
near surface environment. At Shahuindo jarosite occurs in veins and as breccia matrix
(Fig. 17). Because jarosite is precipitated from iron-rich acidic surface water, it often
forms some distance away from the weathering pyrite-rich rock from which it is derived.
Nonetheless, its presence in outcrop is a good indicator that pyrite-rich rocks are or were
nearby. Sites where jarosite was noted are shown in Fig. 18 and it is no surprise that
there is a good correlation with known mineralization.

23

Figure 17. Photographs of jarosite in outcrop. A. Brown jarosite veins in sandstone (East Zone). B.
Jarosite and grey-green scorodite (arrows) in breccia matrix exposed in road cut (Moyan Zone).

Scorodite (iron-arsenic oxide) often forms with jarosite during weathering of rocks that
contained arsenic-bearing sulfides in addition to significant pyrite, and is an important
mineral to map in the field. Scorodite was noted at two sites in East Zone (Fig. 18). Its
presence is an indication that arsenic-bearing sulfides were oxidized along with pyrite.

Figure 18. Map of the main Shahuindo corridor showing mineralized zones from the resource model
and sites where jarosite and scorodite were noted in outcrop.

24

3.3
3.3.1

Structural geology
Tectonic and geologic setting

The Shahuindo district occurs within the Eocene fold-thrust belt of northern Peru (Noble
et al., 1990). Although most structural elements of the fold-thrust belt formed during the
Incaic II orogeny at ~43 Ma, geochronological data and field relationships suggest that
mineralization occurred in the Miocene beginning at ~16 Ma. The Shahuindo district
occurs along a localized belt of intrusive rocks that is mostly parallel to the dominant
structural grain in the fold-thrust belt. Pre-mineralization magmatism at ~26 Ma
produced quartz diorite porphyry intrusions (mapped as andesite), and mineralization
appears to have formed in association with dacitic to rhyolitic magmatism and associated
brecciation, probably related to high-energy diatreme activity. Further geochronology is
needed to test this model (see Recommendations).
Although fold-thrust belt structures developed ~27 m.y. prior to mineralization, foldthrust belt structural elements controlled much of the mineralization. NW-trending
Miocene dikes, diatremes, and mineralized breccias parallel regional strike (fold-thrust
structure) and probably were emplaced along reactivated fold-thrust belt structural
elements and/or basement structures.
Field evidence indicates that both structure and lithology exert important controls on the
location, shape, and orientation of mineralized rock. Important structural elements
include fold limbs and fold axial surfaces, fold-related fractures, faults and related
extension fractures, breccia dikes and irregular bodies, and igneous intrusive contacts.
These structural elements are described below, and their geometry and spatial relation to
mineralized zones are used to construct a new structural model for the Shahuindo district.
3.3.2

Previous structural models

Alvarez (2010) reviewed the geological setting of Shahuindo, but did not present a
structural model for the district. Hodder (2010b, Hodder et al., 2010) presented a detailed
thrust-duplex structural model, and although our detailed observations support some
aspects of his model, many aspects of the model are fundamentally flawed. Based on our
observations and data analysis, we propose an alternative model that significantly
improves on Hodders original structural model.
3.3.3

Structure of fold-thrust belts

Three principal styles of fault-related folds may form in fold-thrust belts (Fig. 19; see
caption for explanation of geometric features):
1. fault-bend folds
2. fault-propagation folds
3. detachment folds.

25

Figure 19. Cross section models of the three principal fault-related folds that may form in fold-thrust belts. A.
Fault-bend fold model; note that fault displacement is equal at every point on the fault, and the fault transects
the entire section. B. Fault-propagation fold; note that this is the only fault model with an overturned forelimb and a back-limb dip controlled by the fault ramp dip. C. Detachment fold; note that, in the core of the
fold, the two anticlinal axial surface traces (dashed) in the box fold join to form a single, tight fold (Chim
Formation in Algamarca anticline).

Although all three fold styles are represented in the Shahuindo district, detachment folds
constitute the dominant fold style in the Algamarca anticline and main Shahuindo
mineralized belt. In addition, a long-wavelength (>1.5km), overturned anticline 1,
mapped between Pampa de Arena and the Leona breccia vein ridge, is interpreted to be
a huge fault-propagation fold (Fig. 20).
Thrust faults in fold-thrust belts within well stratified rocks typically occur in two forms:
1) flats which are low-dip faults sub-parallel to bedding and localized in weak horizons
(evaporate, mudstone), and 2) ramps, or steeper-dip (typically ~30) faults that cut up
section (Fig. 19). Thrust faults occur together with associated folds and second-order
faults in thrust systems, which include a complex array of imbricate fan and thrust duplex
geometries (Fig. 21).
Hodder (2010) proposed a thrust-duplex structural model for the Shahuindo mineralized
belt in which sub-horizontal floor and roof thrust faults bound a series of NE-vergent
thrust fault-bounded blocks (horses)(Fig. 22c). A number of features of the model do not
appear to apply to the Shahuindo district.

The fold is here named the Pampa de Arena anticline.

26

Figure 20. Pampa de Arena overturned fold. A. Schematic cross section model of fault-propagation fold. B.
Photograph showing N-vergent thrust fault with ~1 m thick damage zone and drag fold (site EN-273,
Quebrada Choloque). C and D. Annotated photographs of Pampa de Arena overturned anticline looking NW
and SE, respectively.

3.3.4

General Shahuindo structure

The principal mineralized zone of Shahuindo district occurs in a belt between two largeamplitude regional-scale folds, the Algamarca anticline and the Pampa de Arena
anticline. The Algamarca anticline has amplitude of at least 400m and is an upright,
symmetrical, detachment fold similar to classic folds described in the Jura Mountains of
Europe (Fig. 23). The Pampa de Arena fold has an amplitude of at least 300m and is an
asymmetric, overturned, NE-vergent fold with low-angle dip (15-20) axial surface (it is
nearly recumbent 2). Because of this, the mapped trace of the axial surface has a sinuous
shape (Fig. 24).

horizontal axial surface

27

Hodder et al. (2010) interpreted the Chimcored Algamarca anticline either as an

allochthonous fault-bend fold in the hanging
wall of the duplex roof thrust (Fig. 22a), or
as an anticlinal stack of folded strata and
folded thrust faults all above the proposed
roof thrust (Fig. 21). He placed the subhorizontal roof thrust at approximately 3200
m elevation just below the base of the
Algamarca anticline cliff (Fig. 22c).
However, analysis of old mine workings in
the Algamarca mine suggest that the
southern limb of the Algamarca anticline
continues to at least the 2690 level (Fig. 25).
Figure 21. Early thrust system classification of
The fundamental fold style in Hodders
model is the fault-bend fold, which is formed Boyer and Elliott (1982). Hodder (2010) also
showed this classification and proposed that the
by bending of strata as the thrust hangingShahuindo district structure was a combination
wall moves over a thrust ramp. However,
of a hinterland-dipping duplex (for main
geometric features of the Algamarca
Shahuindo mineralized belt) and an antiformal
stack (for the Algamarca anticline).
anticline (symmetrical, upright, box shape)
indicate that it is probably a detachment fold,
not a fault-bend fold. In addition, the
structural geometry proposed by Hodder et al. (2010) requires duplication of section (Fig.
22), which is not seen in the Shahuindo belt.
The strain in fold-thrusts belts is typically partitioned or compartmentalized along strike
by transverse accommodation faults (also known as tear faults). The existence of tear
faults in Shahiundo district was noted by Hodder (2010b) and Hodder et al. (2010); such
faults include the Choloque, La Cruz, and Los Alisos faults. Although these faults likely
exist (the evidence is mostly from topographic lineament mapping), they display a
combination of kinematics and strong displacement gradients (see discussion below).
Although not well-exposed at surface, they are thought to have a steep dip. The La Cruz
Fault, although it terminates the Algamarca anticline where it accommodated much
vertical displacement, cannot be traced north of the main Shahuindo corridor and it
terminates before reaching the Pampa de Arena anticline. The Los Alisos Fault, inferred
to be present based on a topographic lineament and alignment of intrusive bodies, shows
no displacement of units and does not correlate with transverse veins in the Algamarca
district. However, the Los Alisos Fault appears to terminate the main Shahuindo
mineralized corridor to the northwest.

28

Figure 22. Cross sections illustrating thrust duplex geometries. A. Geometric features required in fault-bend
fold and thrust duplex model of Hodder et al. (2010). Note the incorrect inclined axial surface of Algamarca
anticline and lack of cutoff of both limbs. Also, note structural duplication of section that is not seen in the
Shahuindo district. B. Schematic development of thrust duplex in 3 time steps. C. Hodder et al. (2010) cross
section models of thrust duplex.

29

Figure 23. Top: Classic cross section of Jura Mountains (Switzerland) showing box-fold
geometry developed by detachment folding above a ductile weak evaporate sequence. Brown
axial surface traces show that two axial traces of box fold join to form one fold at depth.
Bottom: Photograph looking NW of box-fold geometry of Algamarca anticline NW of Zn
anomaly area.

30

Figure 24. Hillshade map of topography in Shahuindo district showing structural domains. Surpac Au-grade
model projected to surface (yellow: 0.7-2.5 g/t, orange: 2.5-6 g/t, red: >6 g/t).

Figure 25. Algamarca mine analysis. A. Stereonet showing transverse, NE-strike veins (black great circles)
and fold-limb parallel veins (dashed gray great circles) compared to orientation of anticline. B. Map showing
underground workings. C. Map showing structure contours on veins derived from underground workings.

3.3.5

Structural domains in the Shahuindo district

Four structural domains were defined in the Shahuindo district based on field mapping
and district-scale structural features (Fig. 24). From SW to NE, the domains are:
1. Algamarca anticline
2. Shahuindo folds
3. NE dip domain
4. Overturned fold limb

31

Algamarca anticline domain

This domain is characterized by the huge Chim-cored anticline, which has historic mine
workings on a number of strike-parallel and transverse veins. The Algamarca anticline
has an amplitude of at least 400m and is an upright (generally vertical axial plane),
symmetrical, detachment fold similar to classic folds described in the Jura Mountains of
Europe (Fig. 23). The plunge/trend of the Algamarca anticline axis is ~8/311, and fold
limb orientations are ~134/46 (SW limb) and ~302/50 (NE limb), as calculated from
dip slope topography. The Algamarca anticline occurs only NW of the La Cruz fault.
Vertical displacement on the fault, at the cliff-face exposing the anticline, is at least 600
m but could be as much as 800 m. SE of the fault (domain 2), strata of the Santa or
Carhuaz formations are folded at wavelengths much smaller than the Algamarca
anticline. The Escalon Chim-cored, upright anticline is present on the SE side of the La
Cruz fault, but ~5.5 km to the SW. However, the La Cruz fault dies out within ~1 km to
the NE of the Algamarca anticline within the Shahuindo mineralized belt as it does not
cut nor displace the Pampa de Arena overturned fold. Therefore, the Algamarca and
Escalon anticlines are not offset by 5.5 km of dextral strike-slip displacement, but rather
formed in their present locations, with the La Cruz fault acting as a transverse
accommodation structure, or tear fault (Fig. 26). The Algamarca and Escalon anticlines
formed as detachment folds with the detachment probably localized within the thick,
shaley Chicama Formation.
Shahuindo folds domain

This domain coincides with the main Shahuindo mineralized belt but also occurs SE of
the La Cruz transverse fault and the termination of the Algamarca anticline (Fig. 26).
The distribution of mapped folds is shown in figure 27. This domain is characterized by
short wavelength (<150 m) folds within the Carhuaz Formation and possibly the Santa
Formation. Folds can be upright (vertical axial surface) or inclined, with fold axial
surfaces dipping either NE or SW indicating no consistent sense of vergence. Some folds
display kink-style hinges (Fig. 28) resulting in box-fold geometry (Fig. 23). These
features suggest that most folds are detachment folds (Figs. 19). The fold style is wellillustrated in the NW-facing slopes above the Quebrada Choloque (Figs. 28b, 29, 30).
Many anticlines and some synclines have breccia dikes along their axial surfaces (Fig.
31).
Folds generally have low plunge (<20) and most trend NW or SE, in the range of 290110 and 325-145 (Fig. 32). This orientation is parallel to both the Algamarca anticline
and the Pampa de Arena overturned anticline. Locally, however, N-trending folds are
present; suggesting that lateral ramps may control the orientation of some mesoscopic
folds.

32

Figure 26. A. Geologic map (1:100k INGEMMET) showing regional lineaments and location of Chim-cored
anticlines (yellow). Au-grade model in Shahuindo district shown for reference. B. Map showing schematic 3D representation of NW-plunging Chim-cored anticlines whose location is controlled by NE-strike tear
faults.

Figure 27. Map showing mesoscopic fold hinge distribution and orientation. Structural domain boundaries
shown as blue dashed line; Surpac Au-grade model projected to surface (yellow: 0.7-2.5 g/t, orange: 2.5-6 g/t,
red: >6 g/t). Inset (location shown with white rectangle) shows mapped mesoscopic axial surface traces.

33

Figure 28. Photographs showing kink geometry of folds. A. Kink fold on overturned limb of Pampa de Arena
anticline (inset shows setting on fold limb) (site EN-272). B. Kink fold in box-fold anticline, Quebrada
Choloque cliffs (near site EN-105).

NE dip domain

This domain is characterized by generally homoclinal NE dipping strata (Carhuaz and

Farrat formations); the average bedding orientation is ~312/32 (Fig. 33). Strata in this
domain have been injected by a number of dacitic sills, some of which have brecciated,
silicified sandstone in their hanging wall (see Fig. 34a).
Overturned fold limb domain

This domain consists of the overturned fold limb of the Pampa de Arena fold; the
boundary between domains 3 and 4 is the trace of the axial surface of this large fold.
Local mesoscopic folds occur near the core of the Pampa de Arena anticline as parasitic
or second-order folds (Fig. 19c). At the level of the Quebrada Choloque (sites EN-263 to
EN-268) mesoscopic folds and related thrust faults are interpreted as parasitic folds
related to flexural slip folding.
In the bottom of the Quebrada Choloque near the confluence with the Quebrada
Shahuindo a mesoscopic thrust fault was mapped with clear drag folds showing Nvergent kinematics (Fig. 34). This fault may represent a splay from the principal fault
inferred to exist in the core of the Pampa de Arena fold.

34

Figure 29. Photograph of detachment fold in Quebrada Coloque (view to SE). Arrow shows general level of
detachment fault, below which beds are not folded.

Figure 30. Cross section model along E1000 line. Breccia dikes mostly formed along anticlinal axial
surfaces. Pink represents ore grade shell.

35

Figure 31. Photograph and line drawing of breccia dikes generally along axial plane of anticline (site EN80).

Figure 32. Stereonets showing fold axis (-axis) models. A. Example of modeling technique from West zone,
sites EN-198-201 (see Appendix A); grey dashed line is best fit great circle; red triangle is fold axis model. B.
Summary of all fold models from pole density contours show percent of poles per 1% area of the net.

Figure 33. Stereonets showing average orientation of bedding in NE-dip structural domain. A. Data from this
study. B. Data from Sulliden database; pole density contours show percent of poles per 1% area of the net.

36

Figure 34. Photograph of sub-horizontal thrust fault with fractured damage zone (~1.5 m thick) and drag
folds indicating northward vergence of the fault (site EN-273).

3.3.6

Breccias

Igneous-matrix breccias were described in section 3.1.3. Many non-igneous-matrix

breccias are present in the main Shahuindo mineralized belt and surrounding exploration
target areas (Figs. 35, 36). These breccias were studied extensively in outcrop and in
reconnaissance in core (Fig. 37). Breccias are very complex and should be described
prior to genetic interpretation. In the field, a number of breccia types and geometries
were recognized, and breccias were classified on the basis of three principal descriptive
criteria:
1. breccia clast (fragment) population
2. breccia matrix type
3. breccia geometry
The breccia clast population can be monolithic or heterolithic. Monolithic breccias can
have all sedimentary clasts or all igneous clasts, and heterolithic breccias have a mixture
of sedimentary and igneous clasts. Clast lithology can include relatively unsilicified
siltstone or sandstone, silicified sandstone (quartzite), porphyritic igneous rock, and
pyritized or veined sedimentary clasts. Clast shape varies from angular to very well
rounded (Fig. 36c).
Breccia matrix can consist of igneous material, finely-ground sedimentary material, or
hydrothermal mineral fill (sericite, quartz, Fe-oxide, sulfide). Breccia geometry can be
tabular (dike or sill), or irregular.

37

Figure 35. Map showing distribution of breccias noted in this study. Triangles show location of breccia
where orientation data were not available. Surpac Au-grade model projected to surface (yellow: 0.7-2.5 g/t,
orange: 2.5-6 g/t, red: >6 g/t).

In the west zone, most breccias are present in a zone up to 100 m wide on the NE side of
the main quartz-phyric dacitic intrusive body, and some follow the axial surface of folds.
This zone is likely the location of the San Jos fault zone proposed by previous workers.
In the east zone breccias are generally tabular, between 1-4 meters thick, and most follow
the axial surface of folds (Fig. 31). The orientation of breccia dikes and generally planar
breccia contacts is variable (Fig. 38). However, the dominant set strikes NW with an
average orientation of 118/76. Most breccias have relatively steep dip (Fig. 38c).
3.3.7

Breccia genetic interpretation

Breccias in the Shahuindo district formed before, during, and after mineralization. Much
of the mineralization, particularly in the western zone of the district, occurs within
breccia bodies. Although monolithic sedimentary-clast breccia could have formed during
Eocene fold-thrust belt development, the presence of these breccias as dikes within the
dacite porphyry (Fig. 36b) indicates that most of these breccias formed in the Miocene.
Many igneous-matrix breccias contain both sedimentary and igneous clasts. The fact that
some breccias with porphyritic igneous clasts also contain clasts with pyrite veinlets
indicates that brecciation was a continuous, protracted process during both mineralization
and igneous activity. Rounding of clasts occurs through rotation of clasts in a

38

cataclastically 3 deforming matrix. This process requires high energy and probably
represents volcanic eruption or diatreme-related activity.

Figure 36. Photograph showing monolithic-clast breccias (Bx-m). A. Sub-angular quartzite-clast breccia,
matrix supported (site EN-215). B. Sedimentary-clast breccia cutting dacite (site EN-208). C. Pebble dike (sill
here) with rounded quartzite clasts (site EN-37). D. Sub-rounded sandstone-clast breccia dike cutting
sandstone-siltstone sequence (site EN-203).

Cataclastic = grain size reduced through fracturing.

39

Figure 37. Photograph of core showing vein and breccia textures and cross-cutting relationships. A.
Laminated shale-siltstone with crackle breccia formed of pyrite-filled micro-faults (SH09-111, 159m)). B. Bxm breccia with sedimentary clasts that have pre-breccia pyrite veins and disseminations. Matrix is sericitequartz (SH10-172, 212m). C. Bx-h with clasts of pyrite (py), porphyritic igneous rock (ig), pyritic shale (pysh), and deformed lapilli (lapilli) (SH10-172, 195m). D. Bx-m with rounded sedimentary clasts (s) cutting
irregular alunite veinlet (al) in altered igneous rock (SH10-172, 207m).

40

Figure 38. Stereonets and histogram showing breccia orientation analysis. A. Poles to breccias with pole
density contour plot; gray shades are percent of population per 1% area of net. Average of dominant NWstrike set shown as great circle and as pole (triangle). B. Same data as (A) shown as great circles. C.
Histogram of breccia dip.

3.3.8

Faults

Mappable features used to prove the existence of faults include topographic or other
lineaments, offset contacts, tectonic breccia, and fault slip planes with slickenlines. More
than one of these criteria is best in confirming the presence of a given fault. Some
lineaments, interpreted in past reports and maps as faults, may be faults, but definitive
evidence has not been presented.
A number of topographic lineaments were mapped at the regional and district scales
(Figs. 39, 40). At the regional scale, the Shahuindo district is located near a major
orogenic bend in the Peruvian fold-thrust belt, and where long NE-trending lineaments
intersect the NW-trending fold belt (Fig. 39). At a district scale, most lineaments trend
NE or ENE (Fig. 40), and a number of obvious NE-trending topographic lineaments have
been mapped as faults by company geologists and consultants, and include the Choloque,
Los Alisos, and La Cruz lineaments. Although it is believed that these structures
represent faults, most are not considered to have major strike-slip displacement. The La
Cruz fault has significant dip-slip displacement of up to 800m where it bounds the
Chim-cored Algamarca anticline, but this fault appears to die out to the NE as it does
not displace the Pampa de Arena overturned anticline.
No obvious topographic lineament coincides with the modeled Shahuindo ore zone.
Nonetheless, Alvarez (2010) inferred a fault (San Jose fault or vein) along the ore zone.
Although there is no direct field evidence for this fault, it is likely a fault zone given the
generally linear shape of the modeled ore zone, and its coincidence with the margins of
igneous dikes and breccia dikes.
The geologic map shown in figure 2 includes two veins that we feel can be supported
by geologic evidence; the San Jose and Leona veins. However, these are not typical
veins which are tabular bodies of epigenetic minerals such as banded quartz-sulfide
veins. Rather, they are 1 to 3+ meter wide, tabular to semi-tabular zones of alteration and
relatively high grade gold mineralization associated with breccia, and are interpreted to
be fault zones. The San Jose fault zone, which controls the main Shahuindo ore zone,
consists of a series of parallel or anastomosing, steeply-dipping high-grade zones; the
41

fault trace on figure 2 represents the best-fit surface to this semi-tabular fault zone. The
Leona vein is a moderate to steep southwest-dipping mineralized zone in the North
Corridor. In detail, the Leona vein at surface is parallel to bedding in the overturned limb
of the Pampa de Arena anticline but cuts bedding in the upright limb. It is interpreted
that the Leona vein may be a splay off of the steep structural zone just south of the North
Corridor Zone that focused diatreme breccias.
The modeled gold resource at Shahuindo shows that the main Shahuindo corridor
consists of two NW-trending segments separated by a jog or stepover in the Central Zone
(Fig. 41). Some ENE to EW alignments can be identified, although their significance is
not clear.
Hodder et al. (2010) proposed that the structure at Shahuindo district is dominated by
low-dip floor and roof thrusts of a duplex structure (Fig. 22c). However, we found no
field evidence for these thrust faults. In fact, the roof thrust proposed by Hodder et al.
(2010) at his site 280/281 (the correct UTM coordinates are site EN-21) is actually an unfaulted sandstone bed intercalated between siltstone-mudstone units (Fig. 42).
Nonetheless, we believe that the presence of large detachment folds and fault-propagation
folds infers that sub-horizontal bedding-parallel detachment (thrust) faults are likely
present at depth.

Figure 39. Map showing regional-scale topographic lineaments and changes in the trend of fold-thrust belt.

42

Figure 40. Map showing district-scale topographic lineaments (does not include Algamarca anticline or
obvious stratigraphic sequences). Surpac Au-grade model projected to surface (yellow: 0.7-2.5 g/t, orange:
2.5-6 g/t, red: >6 g/t).

Figure 41. Map showing district-scale alignments of mineralized rock compared to NE-strike topographic
lineaments and Algamarca mine workings. Surpac Au-grade model projected to surface (yellow: 0.7-2.5 g/t,
orange: 2.5-6 g/t, red: >6 g/t).

43

In addition, we believe that the rocks described as mylonites by Hodder (2010b, figures 8
and 9) are not, in fact, mylonites. Mylonites are high-strain shear zone rocks formed at
high temperatures through crystal-plastic deformation mechanisms, and their formation is
inconsistent with the structure of the Shahuindo belt, in which essentially no ductile
foliations or fold cleavage were recognized. The only possible fold cleavage found is a
weak pencil cleavage in mudstones (site EN-292) that likely formed as a pressure
solution cleavage during folding. The pencil cleavage (a linear, not planar, structural
element; Fig. 43) is sub-parallel to the Algamarca anticline (Fig. 32).

Figure 42. Photographs of Hodders site 280/281 (site EN-21; Hodders UTM coordinates are incorrect in his
report, 2010b). A. From Hodder (2010b); blue line represents Hodders interpreted gently-dipping thrust
fault. B. and C. from this study. Sandstone (ss) is intercalated within siltstone-shale (slt-sh) sequence; no
thrust fault is present at this outcrop. Arrows in (B) show small-displacement, high-angle fault cutting
sandstone bedding surface.

Faults recognized in the field with slickenlines show two main orientation sets: NE-strike
and NW-strike (Fig. 44a, b). The NE-strike set shows dominant dextral strike-slip
kinematics and the NW-strike set shows dominant dip-slip kinematics with sinistral
strike-slip component (Fig. 44d, e). Because of the relatively consistent orientation and
kinematics of the two fault sets, a paleo-stress model was generated using the Faultkin
program (Allmendinger et al., 2001). Only faults with moderate to good quality slipsense determination were considered (Fig. 45).
44

The model shows an ENE-WSW shortening

axis and NNW-SSE extension axis resulting in
a conjugate system of dominantly strike-slip
faults. In the model, the NW-strike sinistral
fault (e.g., San Jos fault) is generally parallel
to NW-strike breccias and nearly all
mesoscopic and megascopic folds in the
district. Because the San Jos fault has a steep
dip, using the NE margin of the dacite
porphyry dike as a proxy, we believe that the
NW-strike sinistral faults probably formed
Figure 43. Photographs of pencil cleavage
during Miocene oblique extension (thus
allowing magmas and diatremes to transect the formed along the line of intersection between
fissile bedding in mudstone and axial plane
crust), rather than during Eocene folding. A
cleavage (site EN-292).
NNW-SSE extension axis is oblique to the
120 trend of the Shahuindo corridor and would have caused oblique opening (sinistralnormal faulting) along the belt, and would have promoted intrusion of NW-strike igneous
dikes (Fig. 46). The location of the San Jos fault, and thus the main Shahuindo corridor,
is hypothesized to have been controlled by a NW-striking basement fault that also
controlled the orientation of structures in the fold-thrust belt. Such faults are common in
fold-thrust belts and originated as basin architecture faults.

Figure 44. Fault orientation and classification. Stereonets show NE-strike faults (A), NW-strike faults (B),
and all fault (C). Red circles show slickenline orientation. Histograms show fault classification from
slickenline rake angle for NE-strike faults (D) and NW-strike faults (E). F. Fault classification explanation.

45

Figure 45. Stereonets showing fault kinematic data (A) and paleo-stress model (B). A. Great circles showing
faults with slickenlines and moderate to good quality slip-sense determination; arrows show relative motion of
hanging wall. B. Average fault sets shown as great circles on net and as strike/dip symbol outside net; red
circles represent predicted slickenline orientation in model. Principal paleo-stress axes (1, 2, 3) shown as
white squares. Large gray arrows show general shortening direction, white arrows general extension
direction. C. Paleo-stress model with NW-strike breccia orientations superimposed as great circles. D.
Mesoscopic fold axes in Shahuindo district shown as red triangles, and megascopic Algamarca anticline (A)
and Pampa de Arena overturned anticline (P) axes shown as large circles; same as figure 32b.

46

3.3.9

Igneous dikes

Igneous dikes and intrusive contacts measured in this study show a dominant NW-SE
strike and moderate to steep dips with average orientation ~127/78 (Fig. 46). These
dikes, along with the large dacite porphyry body adjacent to and parallel to the main
Shahuindo corridor, are parallel to fold trends. In some cases dikes are controlled by
steep overturned fold limbs but eventually cut across upright fold limbs. Examples
include thinner dikes that are apophyses SE of the main dacite intrusion (Fig. 47), and
dacite dikes in the Pampa de Arena fold (Fig. 7).
Phreatomagmatic dikes (diatreme breccias) also have this general NW trend indicating
both low-energy and high-energy intrusions were controlled by fold-thrust belt structure.
The diatreme breccia and adjacent carbonate breccia, exposed west of the Leona vein
ridge in the North Corridor, also trend NW. The carbonate breccia probably formed as a
block dropped down along an extensional (normal) fault as the diatreme activity waned.

Figure 46. Stereonet showing dike and intrusive contact orientations as great circles and
poles. Dominant set is NW-strike with average of ~127/78.

47

Figure 47. A. Location map of site EN-242 in Central Zone. B. Photograph mosaic and drawing showing
dacite porphyry dike emplaced parallel to overturned limb of Eocene fold. Note presence of monolithic
sedimentary-clast breccia along dike margin, suggesting three events: sediment-clast breccia forms along fault
parallel to fold limb, the dike intrudes along the same fault, and the fault then reactivate again at a late stage.

48

3.3.10 District structural model

The Algamarca and Pampa de Arena anticlines actually form an anticlinorium 4 structure
which consists of a huge box-fold (Fig. 23) that occurs between two relatively narrow
regional synclines (Fig. 48). Analysis of the INGEMMET 1:100,000-scale geologic map
(Rivera, 1980) shows that, whereas most regional folds are relatively narrow in this part
of the fold-thrust belt, the anticlinorium displays an exceptionally wide outcrop belt of
Carhuaz and Farrat Formations that occurs where the gently NE-dipping box-fold limb
forms a dip slope (NE dip domain).

Figure 48. INGEMMET 1:100,000-scale geologic map (Rivera, 1980) showing exceptional width of Farrat
Formation outcrop belt on NE flank of Algamarca anticlinorium. Regional cross section lines (A-A and BB) are approximately located (see figure 49 for accurate locations).

A new structural model for the Shahuindo district is proposed based on our field
observations, analysis of the 1:100,000-scale geologic map, and two district-scale cross
sections (Fig. 49, 50) that were constructed from a combination of sources. Importantly,
the cross sections are located on both sides of the La Cruz transverse fault (Fig. 49), as
both sections must conform to the principles of strain compatibility, and must explain the
huge difference in structural relief across the La Cruz fault along the axis of the
Algamarca anticline. Note that the sections are drawn with constant formation thickness
(thicknesses were taken from figure 3). Nonetheless, structural thickening is likely,
particularly where second-order folds in the Carhuaz Formation are shown with dashed
4

An anticlinorium is a broad anticlinal structure with lower-amplitude folds developed disharmonically in

the anticlinal hinge area.

49

lines. The Chicama Formation shows the most structural thickness changes that are
related to ductile flow of the thick, shale-rich sequence above the principal detachment.
The cross sections infer that large-scale folds formed over a major, bedding-parallel
detachment within or at the base of the Chicama mudstone-rich sequence (Fig. 50). In
this model, the structural relief between the detachment and the base of the Chim
Formation is filled by highly deformed Chicama Formation. Smaller-amplitude
detachment folds are present in the strongly layered siliciclastic strata of the Carhuaz
Formation in a belt that is partly coincident with the main Shahuindo corridor, probably
above detachments in the Santa Formation mudstone or local detachments in mudstone
units within the Carhuaz Formation. The Carhuaz Formation developed detachment folds
with a smaller wavelength than the Algamarca anticline because of the thinner bedding
and interbedded nature of the unit (sandstone, siltstone, shale).

Figure 49. Location of regional cross-sections A-A and B-B. The detailed geology shown inside the Sulliden
concession is the same as shown in Fig. 2. The legend is for geologic units shown beyond the detailed geology
and is from the 1:100,000-scale (INGEMMET) geology (Rivera, 1980).

50

Although Hodder et al. (2010) proposed that detachment faults are mineralized, we
believe this to be unlikely. Detachment faults commonly develop within strata that are
mechanically weaker and more ductile than surrounding brittle strata. Such weak
lithologies (typically mudstone and evaporate) are also less permeable, less brittle, and
thus less likely to become mineralized.

Figure 50. Cross sections of Shahuindo district; cross section locations are shown on figure 49. Dot-dash
lines are axial surface traces. Note that the sections are drawn with constant formation thickness (thicknesses
from figure 3). Nonetheless, structural thickening is likely, particularly where second-order folds in the
Carhuaz Formation are shown with dashed lines. The Chicama Formation shows the most structural
thickness changes that are related to ductile flow of the thick, shale-rich sequence above the principal
detachment.

We hypothesize that the Algamarca-Pampa de Arena box fold formed over the tip of a
propagating fault or fault zone that splayed off of the major detachment, and that this
splay was localized over a step in the basement associated with a basin architecture

51

normal fault (Fig. 50). This normal fault was reactivated in the Miocene by a shift in
tectonics to allow localized extension, and thus controlled intrusion of the dacite
porphyry dike, the adjacent breccia complex, and much of the mineralization along the
Shahuindo corridor. Mineralized breccia dikes along steep fold limbs and fold axial
surfaces indicate Miocene reactivation of structural weaknesses in the fold-thrust belt.

3.4

Reconnaissance studies - NW Anomaly

On 30 September 2011 a reconnaissance study was undertaken in the NW Anomaly area

and part of the Zinc Anomaly area. Field observations indicate that stratified rocks in the
NW Anomaly area probably represent the Chim and Santa formations. However, site
geologists could not positively identify these strata, and further mapping and stratigraphic
studies are recommended.
Structurally, the area occurs along the NW projection of the Algamarca anticline. A
steep, axial-plane-parallel fracture pattern was recognized in Chim quartzites and also in
slightly silicified dacite near the quartzite contact. Pencil cleavage occurs in mudstone
near the base of the Santa formation (Fig. 43); pencil cleavage represents a linear
structural fabric formed by the intersection of bedding and axial plane cleavage in finegrained sedimentary rocks (shale). Mineralization in the Chim comprises quartz-pyrite
veinlets up to 1 cm wide and brecciated sandstone with pyrite, euhedral quartz druse
lining vugs, and locally coarse-grained illite (sericite). Pyrite has been oxidized but cubic
and pyritohedron voids up to 3 mm in diameter filled with hematitic Fe-oxides indicate
the presence of significant pyrite. This mineralization is similar to that found in the main
Shahuindo zone, although the quartz veinlets are slightly wider and euhedral quartz
crystals larger. Illegal miners (informales) are working veins with NE-strike that consist
of crackle and rotated-clast breccia in Chim quartzite; open-space hydrothermal fill
consists of drusy quartz and various sulfides (pyrite, chalcopyrite, tennantite-tetrahedrite,
and possibly chalcocite). Illegal miners also work brecciated zones along the contact
between Chim quartzite and xenolith-rich dacite.
Numerous breccia types were recognized along the transect, including most of the types
encountered in the main Shahuindo district. These include monolithic-clast breccia
(quartzite clasts), heterolithic igneous-matrix breccia (diatreme breccia with sedimentary
and porphyry clasts), and monolithic igneous-matrix breccia with sedimentary clasts
(along the Chim-dacite contact).

3.5

Reconnaissance studies - Zinc Anomaly

On 1 October 2011 a reconnaissance visit was made to the Zinc Anomaly area. The area
is situated on a NW-trending topographic ridge that follows the trend of the Algamarca
anticline. Folded sedimentary rocks of the Carhuaz Formation were intruded by a large
irregularly-shaped body of heterolithic biotite diorite breccia about 1 km in diameter,
which was in turn intruded by foliated biotite quartz diorite porphyry (1 km in diameter),
then cut by a circular body of heterolithic megabreccia (described previously) 500 meters
in diameter.
52

The heterolithic biotite diorite breccia displays strong quartz-illite-pyrite alteration for 30
to 40 meters on the SE contact with foliated biotite quartz diorite porphyry (site SB-204).
The foliated biotite quartz diorite and the heterolithic megabreccia are magnetic and show
only traces of weak chlorite-epidote alteration. At the NW contact with foliated biotite
quartz porphyry (sites SB-216 and SB-217), heterolithic biotite diorite breccia is again
strongly altered to quartz-illite assemblage and may include zones with pyrophyllite and
alunite. Brecciated sandstone adjacent to the igneous matrix breccia appears to originally
have had up to 10% pyrite in areas that now have abundant iron oxide and jarosite.
Informales are also working in this area.
We did not have time to hike to the bottom of the ridge but the Sulliden geologic map
shows a circular intrusion 500 meters in diameter just beyond the northwestern most part
of our traverse. This intrusion appeared to be altered and may be the center of a
mineralized system in the Zinc Anomaly Zone. The unaltered foliated biotite quartz
porphyry and heterolithic megabreccia are thought to be post-mineralization in age. The
possible nature of the mineralization is discussed in more detail in the Metal Zoning
section of this report (Fig. 54).

Synthesis Structural-Mineralization Model

Mineralization occurred late during the second phase of Miocene magmatism. Steep
faults parallel to strike of the fold-thrust belt focused intrusion of dacite porphyry dikes.
These structures were reactivated during emplacement of high-energy breccia dikes (both
igneous-matrix and non-igneous matrix breccias) and subsequent flow of hydrothermal
mineralizing fluids. Some breccias are transverse to fold-thrust belt strike indicating
Miocene reactivation of Eocene transverse faults (e.g., La Cruz fault, Algamarca mine
veins).
4.1

Structural controls on mineralization

On a district scale, the main Shahuindo mineralized corridor is linear with a known strike
length of nearly 4 km. The mineralized zone follows the NW-trending, steeply-dipping
dacite porphyry, both being controlled by the hypothesized San Jos fault. Based on
Sulliden mapping, the mineralized belt, the dacite porphyry, and assumedly the San Jos
fault all terminate to the NW at the lineament mapped as the Los Alisos Fault. The belt
of dacite dikes and stocks jogs to the west along the NW Anomaly Zone, and then
continues to the NW along the axis of the Algamarca anticline. This pattern is interpreted
to reflect a localized EW-trending dilatant jog (here termed the Chilca jog) that connects
two segments of a NW-trending sinistral (normal) fault in a fault system that follows
fold-thrust belt trends (Fig. 51). Note that the jog is localized where the Los Alisos Fault
crosses the Algamarca anticline.

53

Figure 51. Maps illustrating geologic features (A) and structural interpretation (B) of Shahuindo district.

Larger-scale structural controls on mineralization within the Shahuindo district include

faults, igneous and breccia dikes, and fractures, some of which are related to fold
geometric features (steep fold limbs, axial surfaces, and transverse fractures). We
propose that the main Shahuindo mineralized belt was controlled by a steep NW-strike
fault zone that originated as a basin architecture normal fault in the basement and was
reactivated both during Eocene fold-thrust development and during Miocene
mineralization. Folding of sandstone beds in fault-bend folds and detachment folds
causes fracturing that promotes structural permeability during mineralization (Fig. 52).
Mineralization in the Algamarca district is dominantly along transverse fractures and
faults, but also occurs in strike-parallel structures which coincide more with fold limbs
than with the axial surface (Fig. 25). However, presence of breccias and geochemical
soil anomalies (see below) along the NW continuation of the Algamarca anticlinal axis
suggests that the axial surface may have controlled intrusion, brecciation, and
mineralization processes in this area. Mineralization in the North Corridor area is along
faults parallel to the steep overturned limb of the Pampa de Arena fold (Leona vein;
Fig. 20c), but also may be controlled by brittle fracturing along bedding and/or the fold
axial surface. The Au soil anomaly in the North Corridor essentially follows the trace of
the axial surface as it changes from near EW trend to near NS trend as the trace crosses
the Los Alisos quebrada (Fig. 24).

54

Figure 52. Photographs and line drawings illustrating fracture patterns in mesoscopic folds that contributed
to structural permeability in the main Shahuindo belt. A-B. Fractures formed by outer-arc extension in
sandstone within detachment fold (same fold as Fig. 29). C-D. Fractures formed in fault-bend fold above
small fault ramp (see Fig. 21). Inset shows position of outcrop (site EN-268) in overturned limb of Pampa de
Arena anticline; mesoscopic fault and fold formed due to flexural slip folding and shear of fold limb.

4.2

Intrusive centers

Two main intrusive centers are present in the district; one just west of the North Corridor
Area and the other in the Zinc Anomaly Zone (Fig. 52). Each intrusive center is
characterized by a body of diatreme breccia that postdates emplacement of dacite
porphyry and andesite. At the North Corridor, the diatreme breccia is cut by a central
stock of quartz-diorite-porphyry. The southwestern part of the North Corridor intrusive
complex has not been mapped in detail so the extent of igneous diatreme breccia and
younger quartz-diorite porphyry is not known. The Zinc Anomaly intrusive complex
consists of an early diatreme breccia cut by a foliated quartz-biotite porphyry stock,
which in turn is cut by a circular body of igneous megabreccia 500 meters in diameter.
The foliated quartz-biotite porphyry stock is very similar in mineralogy and grain size to
the quartz-diorite porphyry identified at the North Corridor intrusive complex and they
may be related. As described previously, the heterolithic igneous megabreccia contains
blocks of volcanic rock 10 meters or more in diameter in a matrix of foliated quartzdiorite porphyry. In addition to the North Corridor and Zinc Zone intrusive centers, it is
possible another igneous intrusive complex is present beneath the main corridor at

55

Shahuindo based on the distribution heterolithic fine-grained dacite breccia dikes (red
stars in Fig. 52).

Figure 52. Generalized geologic map of the district showing the location of explosive igneous
complexes.

4.3

Metal zoning

Metal zonation was assessed using the soil geochemistry data set, plan maps and sections
based on the latest gold resource model, and observations from the few core holes we
logged. A more complete picture could be obtained from a systematic study of drill hole
geochemistry and compilation of the distribution of sulfide minerals from core logging.
We understand that Sulliden is currently in the process of re-logging all available drill
holes from the property and this should provide a much better understanding of mineral
zonation.
The soil geochemistry data set provides a first order view of the distribution of
hydrothermal centers in the district. The geochemical point data for selected elements

56

was gridded using an inverse-distance-squared interpolation method. A quick inspection

shows that the data set consists of two or more surveys with each having a different lower
analytical detection limit. This could be the result of different analytical techniques,
different laboratories, or different sampling methods. For example, in the results for Bi
(Fig. 53a) two lower detection limit populations are apparent in the data. The survey that
covers the trend of the main corridor and extends northwest over the Algamarca district
to the limit of the property appears to have a lower detection limit and more coherent data
than the surveys to the northeast and southwest. Despite this limitation, geochemical
zoning can be seen in the data.
The distribution of Cu shows high values in the Zinc Anomaly Zone, the Algamarca-NW
Anomaly Zone, North Corridor, and the Central Zone of the main Shahuindo corridor
(Fig. 53b). The Cu anomaly at Algamarca-NW Anomaly Zone is probably enhanced in
size due to surface contamination related to historic mining in the area. These four areas
probably represent the central and hottest parts of separate mineralizing centers.
The distribution of Zn (Fig. 53c) is more difficult to interpret. In the Zinc Anomaly
Zone, the highest Zn values are coincident with the highest Cu values. In the AlgamarcaNW Anomaly Zone the highest Zn values extend almost 2 km to the north into the Zinc
Anomaly Zone, and northeast toward North Corridor. At North Corridor, high Zn values
extend 1 km to the southwest along the trend of the Leona vein. In the Central Zone, Zn
is quite low although there are small areas of high Zn just to the west.
The distribution of As shows a large anomaly centered on the main mineralized corridor
at Shahuindo that extends west along the NW Anomaly Zone and then north into the Zinc
Anomaly Zone (Fig. 53d). Anomalous As values extend from the main corridor up to the
North Corridor. The Algamarca area has anomalous but not high As values which is
surprising given the expected contamination from historic mining in the area.
The distribution of Au in soils nicely outlines the main mineralized corridor at Shahuindo
(Fig. 53e). The east-trending NW Anomaly Zone is obvious as is the North Corridor.
There is a zone of anomalous Au located about 1 km south of the East and Moyan Alto
Zones. This area was visited in the field at one locality and evidence of mineralization
along narrow, steep-dipping, northeast-trending breccia zones was noted. The area of the
Zinc Anomaly Zone has only a few spots of anomalous Au in the soil.
The distribution of Sb is similar to that of Au with strong anomalies at the east end of the
main Shahuindo corridor, North Corridor and NW Anomaly Zone (Fig. 53f). The Zinc
Anomaly Zone has no Sb anomalies except for a few low values in the area of high Cu.

57

Figure 53. Soil geochemistry maps of the Shahuindo district. The main corridor and North Corridor
gold mineralized zones are shown in black outlines. Areas of high Cu in soil are outlined in green. See
text for discussion.

58

Based on the few holes we logged, data from the Hodder (2010a) report, examples of
mineralization from the Algamarca waste dumps and the soil geochemistry database, we
make the following observations about the Shahuindo system. Sulfide mineralogy and
associated alteration indicates the Algamarca-Shahuindo district is a Cordilleran-type
polymetallic epithermal system such as Tantahuatay or Colquijirca. In particular,
Shahuindo belongs to a sub-class of this deposit type, first described by Montoya et al.
(1995) and referred to as sandstone-hosted gold deposits. These deposits are known in
the Cajabamba-Huamachucho-Angasmarca region south of Cajamarca and include Alto
Chicama (Laguna Norte), La Virgin, El Toro, and Santa Rosa. A recent compilation of
isotopic age dates for Late Tertiary deposits in northern Peru (Noble et al., 2004) suggests
most of the deposits formed in the middle Miocene from 19 14 Ma, although
Yanacocha and Tantahuatay in the middle of the northern Peru belt formed slight later at
14 10 Ma. Most of the districts in which these deposits occur contain porphyry CuMoAu mineralization and porphyry systems are thought to underlay most polymetallic
epithermal systems.
At Algamarca-Shahuindo, pyrite-tetrahedrite-tennantite-covellite mineralization is
associated with an alteration assemblage of alunite-pyrophyllite-diaspore-kaolinite-illite
and appears to be paragenetically early. Pyrite, sphalerite, galena and stibnite associated
with quartz-illite (sericite) can be seen to cut veins of pyrite-tetrahedrite-tennantitecovellite. This is supported by the observation that, in the core holes we logged, high gold
values do not necessarily correlate to zones of high Cu and vice versa. In a study of
Miocene mining districts in northern Peru (Gustafson et al., 2004), it was found that
structurally controlled high gold zones formed late and are associated with intermediatesulfidation state alteration assemblages. Gold mineralization in the main corridor at
Shahuindo seems to have these characteristics.
By analogy with known systems, the highest Cu values should be associated with the
central and deepest part of the epithermal system. With this in mind it is interesting to
study the soil geochemistry of the Zinc Anomaly Zone (Fig. 54). Cu in soil geochemistry
shows a large anomaly that is coincident with a 500-meter diameter intrusion. It also
shows a distinct low associated with the foliated quartz-biotite diorite and the heterolithic
igneous megabreccia, confirming that these are post-mineral in age. A strong Mo
anomaly is spatially restricted to the area around the 500-meter diameter intrusion. Other
elements show only weak anomalies right at the margin of the intrusion. We were unable
to visit this intrusion in the field but it should be mapped in more detail to determine the
nature of the intrusion and if there is any evidence of porphyry-style mineralization or
alteration.

59

Figure 54. Zoomed in view of Mo and Cu Soil geochemistry maps of the Zinc Anomaly Zone. A. Mo
displays a strong but spatially restricted anomaly associated with a 500m-diameter intrusion (arrow). B.
Cu displays a larger anomaly centered over the same intrusion; black dashed line (arrow) is limit of post
mineral intrusion and diatreme breccia.

Exploration guidelines

Some of the most effective exploration techniques are already being utilized by Sulliden
at the Shahuindo projects, such as soil geochemistry and ground-based geophysical
techniques. Based on features we observed in the district, we offer the following
guidelines that could be used to help evaluate new exploration opportunities for
Shahuindo-type mineralization in the region.

Regional fold-thrust belt strike is the preferred orientation, but not the only
orientation, for mineralized belts. The EW trend of the NW Anomaly Zone and
similar ENE alignments of outlying mineralized zones, although not fully
understood, may be controlled by local openings within jogs that link sinistral
(normal) NW-strike fault segments (Fig. 51).

Dacite porphyry dike margins (e.g. San Jos fault) control most Shahuindo
mineralization and this is true for the NW Anomaly Zone and much of the
Algamarca mineralization, as well.

Much mineralization is hosted in breccia dikes, which occur preferentially along

steep fold limbs, steep axial surfaces, and dacite porphyry dike margins.

Intersections of transverse faults with structures parallel to regional strike are

important; for example, the highest-grade mineralization occurs where the La
Cruz fault intersects the San Jos fault.

60

6
6.1

Alteration zonation vectors to Au mineralization: the best gold mineralization

appears to be associated with
late quartz-illite/sericite alteration
rock with evidence for high (>10%) sulfide content.

Recommendations
Exploration recommendations

o Geochronological studies are recommended to define the age range for plutonism,
alteration, and mineralization. New absolute ages, combined with careful
petrographic and field mapping of igneous rocks and related breccias, will improve
the exploration vectoring methodology.
o Undertake a detailed stratigraphic study of the Shahuindo district, with assistance
from a sedimentologist/stratigrapher with experience in, or familiarity with, the local
stratigraphic sequence. Make a series of detailed measured sections and correlate
with stratigraphically relogged core to help define formational boundaries and lateral
facies changes. Knowledge of formational boundaries and unit characteristics will
improve district-scale structural cross section models. Lateral facies changes
commonly control the locations of ramp structures and related structural domain
boundaries. A Peruvian stratigrapher to consider is David Davila
(david.davila@apt.com.pe).
o Map fresh road cuts shortly after they are made and before reclamation occurs.
Collect lithological, structural, alteration, and mineralization data.
o Map axial surface traces of folds when identified.
o Determine stratigraphic facing direction from sedimentological features (e.g., cross
bedding, graded bedding, load casts) to identify overturned bedding. Plot overturned
bedding orientations with appropriate map symbol.
o Produce a formational interpretation layer on geological maps. Also include
formational interpretation in core logging.
o Determine relative stratigraphic ages from fossils when present.

6.2

Procedural Recommendations

o Translate all consulting reports from English to Spanish. This will encourage
geologists with poor English skills to read observations and interpretations of outside
consultants.

61

o Although not an easy task, Sulliden geologists must attempt to define formational
contacts and add the contacts to both the interpretative geological map and cross
sections. This is very important for two reasons: 1) formation contacts will help
constrain the overall structural interpretation, and 2) lateral facies changes, defined
through recommended stratigraphic studies, may constitute an important exploration
tool, as such changes are commonly controlled by basement structure. Employing a
Peruvian sedimentological/stratigraphy expert will greatly assist this task.

References

Alvarez. M., 2010, Structural Overview and Recognition of Metal Drilling: Minera
Sulliden-Shahuindo S.A.C. Report, 32p.
Allmendinger, R.W., Marrett, R.A., and Cladouhos, T., 2001, FaultKin Version 1.2.2 (for
Windows), computer program and users manual (for v.1.1), 29 p.,
http://www.geo.cornell.edu/geology/faculty/RWA/programs.html
Boyer, S., and Elliott, D., 1982, Thrust systems, American Association of Petroleum
Geologists Bulletin, v. 66, p.1196-1230.
Gustafson, L.B., Vidal, C.E., Pinto, Rita, and Noble, D.C., 2004, Pophyry-epithermal
transition, Cjamarca Region, Northern Peru, SEG Special Publication 11, pp.279-299.
Hodder, R.W., 2010a, The Shahuindo epithermal gold occurrence Cajabamba Province,
Peru: Petrographic reconnaissance & interpretation of shape and size, Consulting report
prepared for Sulliden Exploration Inc., May 31, 2010, 98p
Hodder, R.W., 2010b, The Shahuindo epithermal gold occurrence: an addendum to the
June 30, 2010, Consulting report prepared for Sulliden Gold Corporation Ltd., December
15, 2010, 32p.
Hodder, R.W., et al., 2010, The Shahuindo epithermal gold occurrence Cajabamba
Province, Peru: Petrographic reconnaissance & interpretation of shape and size,
Consulting report prepared for Sulliden Gold Corporation Ltd., June 30, 2010, 112p.
Montoya, D.E., Noble, D.C., Eyzaguirre, V.R., and DesRosiers, D.F., 1995, Sandstone
hosted gold deposits: A new exploration target is recognized in Peru, E&MJ, June, p.3441.
Noble, D.C., Mckee, E.H., Mourier, T., and Mgard, F., 1990, Cenozoic stratigraphy,
magmatic activity, compressive deformation, and uplift in northern Peru, Geological
Society of America Bulletin 1990, v.102, no. 8, p.1105-1113.
Noble, D.C, Vidal, C.E., Perall, J. and Rodrguez P., Omar, 2004, Space-time
realtionships of some porphyry Cu-Au, epithermal Au, and other magmatic-related
mineral deposits in northern Peru: SEG Special Publication 11, pp. 313-318.
62

Rivera, L., R., 1980, Geologia de los Cuadrangulos de Cajamarca, San Marcos y
Cajabamba, Boletin No. 31, Serie A. Carta Geologia Nacional, Instituto Geologico
Minero y Metalurgico, Lima, Peru, 67p.

Appendix A Field Site Location Maps

63

Figure A-1. Location map for all Nelson (EN-#) field sites.

Figure A-2. Location map of Nelson field sites by date.

Appendix B Structural Database

Provided digitally as file: Structural Geology Database Shahuindo.xlsx.

10 Appendix C Fold axis models

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