The Kechua prospect is a sediment hosted gold target with lithological and structural characteristics similar to the nearby Alto Chicama gold project controlled by Barrick Gold Corporation. These characteristics include Lower Cretaceous Chimu Formation sediments, intensive tectonism with frequent reverse faulting and fracturing of the sediments (quartzites) and intensive silicifi cation and near surface limonitisation.

The Kechua area has a history of small scale mining of narrow gold veins associated with structures in narrow coal layers within a sequence of Lower Cretaceous Chimu Formation sediments.

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The San Francisco project is located in the Chicama-Yanacocha gold district, and is hosted by Lower Tertiary Calipuy volcanics and comprises outcrops and veins with geochemical anomalies. The local geology is similar to Kechua, with rocks from the lower Tertiary “Calipuy” volcanic formation.