The Frontera Project consists of a 1,200 ha package of tenements located in region I of northern Chile, on the western border with Peru as well as close to the border with Bolivia.

The Pucamarca high sulfidation Au deposit (~1.2 million oz Au resource), owned by Peruvian miner Minsur, is located in Peru only a few meters west of the Frontera property boundary.  Although it could appear that the Pucamarca deposit and Frontera prospect might be separate hydrothermal systems, there is some evidence to show they may be part of one large alteration complex. Limited work conducted by joint venture partner Teckcominco in 2006 confirms this complex extends over an area of some 8 x 6 km, similar to that observed around many large HS deposits in Peru and Chile.

At the regional scale, the property is located at a major structural intersection.  Principal structures include the north-west trending Inca Puquio fault system (said to control mineralization at several large Cu porphyries in southern Peru); and the north-north-west trending West Fisher fault system (known to control mineralization over hundreds of kilometers in northern and central Chile).

Known gold mineralization is mostly restricted to vuggy silica alteration and locally to silica-alunite zones.  Drilling conducted by then joint venture partner Hochschild (MHC) in 2005, indicates that the gold mineralization is mainly found within hydrothermal breccias characterized by abundant iron oxide cement and to a lesser degree to oxides disseminated in silica and silica alunite alteration.

Another style of mineralization which consists in small zones of copper enrichment characterized by chalcocite coating pyrite is recognized on the Frontera property. This mineralization has additionally been recognized in MHC 2005 drill hole intersections.  The best sampled drilling interval assayed 0.25% Cu over 18 m. Very strong Mo, up to 565ppm is reported from a surface area extending eastwards from Frontera’s Cerro Vuggy (Vuggy Mountain).  Combined with the presence of chalcocite mineralization, this suggests a possible blind Cu porphyry target could underlie the advanced argillic alteration observed at surface.  In 2006 Teck Cominco drilled 3 holes in this area to test this hypothesis but only intersected argillic to propylitic alteration below advanced argillic alteration. An area extending close to 2 km to the east of the main Mo anomaly remains untested.