Carito is located in northern Peru within the prolific Antamina - Magistral thrust fault belt, Ancash Department. The district's potential was unrecognized until recently when prospectors discovered high-grade gold mineralization beneath thin coluvial cover. The Carito prospect is an undrilled Au system resembling the La Arena deposit which, to date, contains 100.7 Mt grading 0.46 g/t gold (in production) plus an underlying porphyry copper-gold deposit currently being explored containing 632.4 Mt grading 0.46% CuEq.
Two styles of mineralization are present at Carito; a disseminated gold epithermal system hosted within sedimentary rocks and a copper - gold porphyry system. Gold mineralization is controlled by fractured and crackle-brecciated quartzites and sandstones of the Cretaceous Chimu formation. The Chimu formation is a well-known host for disseminated gold deposits in northern Peru (La Arena, Lagunas Norte, Santa Rosa). The sedimentary unit is intruded by at least two pervasively altered porphyries. Importantly, hydrothermal breccias and a diatreme breccia have been identified which indicate abundant sources for mineralizing, hydrothermal fluids. Values derived from one-hundred-nineteen (119) rock chip samples from the quartzites / sandstones, and intrusives range from trace to 22.1 g/t gold. Eighty-three (83) samples from the above one-hundred-nineteen samples contain greater than 50 ppb gold. Associated favorable trace elements include strongly anomalous Ag, As, Hg, Sb and W. The two altered intrusives observed to date exhibit values up to 0.23 g/t gold, indicating a possible target for a mineralized Cu-Au porphyry at depth.