Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach,

5/97 Edn.

6 HIGH SULFIDATION GOLD-COPPER SYSTEMS

i) Characteristics

a) Classification

High sulfidation (also termed acid sulfate, quartz-alunite-enargite gold, and silica-alunite-kaolinite + pyrophyllite
gold) gold-copper systems are formed where acidic fluids dominated by reactive magmatic-derived gases,
migrate vertically and laterally along structures and permeable country rock (i.e., porous lithologies, secondary
fracture permeability), and undergo rock reaction and fluid mixing. These systems have the following unique
characteristics (Bonham, 1986):

1. Zoned central advanced argillic, to argillic, to peripheral propylitic alteration.

2. Copper-gold-arsenic mineralization commonly, but not exclusively, with enargite/luzonite as the dominant
copper mineral phase.
3. An association with calc-alkaline volcanism.

We suggest that the term acid sulfate only be used for alteration formed by collapsing low pH, surficial fluids
discussed in Sections 1 and 4.

Although traditionally regarded as epithermal, high sulfidation alteration and mineralization extend with
increasing depth from epithermal through mesothermal to porphyry environments (Fig. 6.1). The depths of
formation of high sulfidation systems may be inferred from the alteration mineralogy in both the central silica
zone (indicating the temperature of the upwelling acid fluid), and peripheral clay zones, which provide an
indication of the conditions which prevailed in the host rock. The recognition of andalusite or corundum in high
sulfidation advanced argillic alteration (e.g., Horse-Ivaal, Frieda River, Papua New Guinea; Lookout Rocks, New
Zealand; Cabang Kiri, Indonesia) suggests that some systems formed under very hot conditions, proximal to the
magmatic source. Central alunite-pyrophyllite alteration (e.g., Nena, Frieda River and Wafi River, Papua New
Guinea; Gidginbung (Temora), eastern Australia) is indicative of shallow mesothermal to epithermal conditions.
The predominance of low temperature alteration minerals such as dickite/kaolinite and illitic clays in other
systems (e.g., Lepanto, Philippines; Maragorik, Papua New Guinea; Mt. Kasi, Fiji; Peak Hill and Dobroyde,
eastern Australia), demonstrate that these systems formed at shallow epithermal levels (Figs. 6.1, 6.3).

White (1991) described high sulfidation systems on the basis of morphology and alteration
mineralogy/zonations, to define differing styles characterized by type examples as: vein or El Indio,
disseminated or Temora, and disseminated with local veins or Nansatsu styles. A similar classification can be
applied to southwest Pacific rim high sulfidation systems, based on the styles and zonations in alteration
mineralogy and the main controls on fluid flow. Three distinct end member high sulfidation styles are recognised
and discussed in a later section as:
* porphyry related (termed shoulders to porphyry intrusions),
* lithologically controlled,
* structurally controlled.

Many systems are in part both structurally and lithologically controlled and so the above classification should be
regarded as end members of a continuum. Many appear to be structurally controlled at depth and become
lithologically controlled at higher levels where permeable lithologies are intersected and exploited by rising fluids.
Lateral fluid flow is common either within permeable horizons, dilational structures, or typically at the intersection
of the two. These systems may appear to be rootless during early exploration, until explored down dip of the
original drill intersections or exposures (e.g., Nena, Lepanto, Mt Kasi, Gidginbung). Hybrid high-low
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

sulfidation and exhalative systems are also discussed.

b) Active analogues

Volatiles (H2O, CO2, SO 2, HCl, HF) which are channelled up major crustal faults can migrate directly from a
degassing magma to the surface and vent as magmatic solfataras (Fig. 6.1). At Biliran Island, Philippines,
magmatic volatiles (superheated steam and magmatic gases) vent to the surface at the Vulcan solfatara, and
produce liquid sulfur flows up to 1-2 km long (Mitchell and Leach, 1991), and elsewhere have ascended into a
meteoric-dominated circulating geothermal system. The presence of significant fluorine contents in geothermal
waters, at an order of magnitude higher than other Philippine geothermal systems (PNOC-EDC, unpubl. data),
suggests that the circulating hydrothermal system has incorporated some of the magmatic volatiles. Feeders to
the magmatic solfatara were intersected by drilling at depths of 1 km, and these structures produced fluids at
>310oC and pH <2 (Table 2.1).

These magmatic-derived volatiles may also contain significant metal contents. It has been interpreted
(Hedenquist et al., 1993) that the magmatic discharge from the 1988 eruption at White Island, New Zealand had
a metal flux of 110 tons/year copper and >350 kg/year gold. Altered rocks adjacent to the Surimeat active
magmatic solfatara on Vanu Lava Island, Vanuatu, contain thousands of ppm copper and arsenic, and
anomalous gold (T. Leach, unpubl. data).

c) Two stage alteration and mineralization model

A two stage model was proposed by White (1991) to explain the overprinting alteration and mineralization
features encountered in many high sulfidation systems. This model is characterized by early volatile-rich and
later liquid-dominated alteration/mineralization events. Features of this model (Fig. 6.2) are:

1. Volatile-rich event

Magmatic fluids which exsolve from a melt emplaced at shallow crustal levels (<1 kb pressure) are postulated to
partition into a low density vapour (containing H 20, CO2, SO 2, H2S, HCl, etc.) and a hypersaline liquid
(Hedenquist and Lowenstern, 1994). It has been proposed (Henley and McNabb, 1978) that the density contrast
between the vapour and hypersaline liquid results in separation of the two phases within the magma chamber.
The vapour phase is inferred to be more mobile than the saline liquid due to relatively low viscosity and density,
and quickly ascends to shallow levels, even under lithostatic pressures (Hedenquist et al., 1994). The low
density phase is interpreted to contain relatively low metal concentrations, whereas the dense hypersaline liquid
may be enriched in gold, copper and other chalcophile elements (Hemley and Hunt, 1992).

The magmatic vapours are interpreted to become absorbed into ground water or circulating meteoric waters.
The SO 2 disproportionates to H 2S and H 2SO 4 at temperatures below approximately 400oC (Rye, 1993), and at
lower temperatures (<300-350oC; Hedenquist and Lowenstern, 1994) HCl and H 2SO 4 progressively disassociate
to form hot acidic fluids (Section 1.iv, Fig. 1.4). Alteration minerals which form in rocks immediately adjacent to
inferred source intrusions for the acid fluids reflect this gradual decrease in fluid pH (Fig. 6.2). These minerals
are commonly zoned moving away from the degassing melt, to shallower and/or more distal settings as:
mica-andalusite + corundum, through pyrophyllite-diaspore, to quartz-alunite. The presence of andalusite, and
locally of corundum, in these assemblages suggest that dissociation to form the hot acidic fluids may be initiated
at temperatures of greater than 340-390oC (Hemley et al., 1980).

At shallower levels, alteration zonation in high sulfidation systems is formed in response to the progressive
neutralization and cooling of hot acidic magmatic-derived fluids mainly by wall rock reaction (Steven and Ratte,
1960; Stoffregen, 1987; Fig. 6.3), and possibly to a lesser extent by mixing of the hydrothermal fluids with
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

locally-derived neutral, meteoric waters. Zoned alteration assemblages occur in all structurally and lithologically
controlled high sulfidation systems. While overprinting may complicate these relationships, alteration
assemblages can be divided into three main alteration zones: central quartz-alunite, marginal phyllic or argillic,
and peripheral propylitic zones.

The quartz-alunite zone usually comprises a characteristic core of silica group minerals, mainly quartz (but at
shallow levels possible cristobalite, tridymite and/or opaline silica), which typically display a vughy texture,
indicative of intense acid leaching. It is interpreted (Giggenbach, 1992) that only at temperatures of <250oC can
the fluid acidity become high enough (pH <2; Stoffregen, 1987) to promote complete rock destruction. Thus,
while vughs form after leached pheoncrysts or rock fragments, many develop by a destruction of the primary
rock texture. The quartz (and at low temperatures other silica minerals; Section 4.ii.a) is virtually the only
residual mineral following the leaching of other rock components, and so this alteration is commonly termed
residual quartz (silica). Lower temperature high sulfidation systems formed as high crustal levels may feature
extensive silica mineral deposition. The central residual (vughy) quartz zone grades out to a silicified zone which
contains alunite group minerals formed under a slightly higher (2-3) fluid pH range, as the fluid becomes
progressively neutralized in response to reaction with the host rocks and/or fluid mixing.

The central silica-alunite zone is typically surrounded by marginal argillic/advanced argillic alteration
assemblages of kaolin group (pyrophyllite, dickite, kaolinite) minerals which are indicative of formation at a pH of
around 4. These grade outwards into illite group (sericite, illite, illite-smectite, smectite) minerals, as the fluid
becomes progressively more neutralized to a pH of around 5. The mineral assemblages formed in each zone
are dependent upon the temperature and pH of the upwelling acid fluid, the composition of the host rock, and
the physico-chemical conditions of waters residing in the host rock. The illite group minerals grade outward to
peripheral sub-propylitic chlorite-carbonate alteration assemblages, or at deeper high temperature conditions,
propylitic epidote/actinolite-albite-chlorite-carbonate alteration assemblages.

The alteration zonation which forms in response to upwelling hot acidic magmatic-derived fluids, is distinct from
the alteration zonation formed by descending acid sulfate waters. The latter produces alteration zones which
reflect a change from surficial cool and acid, to hot and neutral conditions, with increasing depth (Fig. 6.3).

2. Liquid-rich event

It is interpreted that the dense, hypersaline and metal-rich liquid remains at depth until pressures drops are
promoted by tectonic fracturing of the carapace (Section 3.ix.a), and/or crystallization of the melt, to facilitate
expulsion to shallower crustal levels (Hedenquist et al., 1994). The cooling and dilution of these metal-bearing
fluids, in response to wall rock reaction and mixing with ground water and/or circulating meteoric water, results in
mineralization which overprints the zoned alteration formed by the earlier vapour phase.

The dense, liquid-rich phase utilises the same plumbing system as the earlier volatile-rich phase and focuses
mineralized fluids into the residual or vughy quartz at the core of the zoned alteration. Competent residual quartz
and quartz-alunite rocks brecciate well and so commonly host mineralization (e.g., Nena, Frieda River, Papua
New Guinea; Bainbridge et al., 1994). Continuing deformation of dilational structures which channel the
liquid-phase fluids may enhance breccia formation and mineralization. The metal grades of ores are commonly
proportional to the degree of brecciation and introduction of sulfide matrix (Section 3.x.d.4, Fig. 3.22). The
enclosing incompetent clay alteration generally displays more plastic deformation, does not fracture, and so is
commonly not mineralized. A skin of barren silica-alunite alteration may rim the mineralized silica core and mask
mineralization, especially if this material is relatively hard (e.g., Nena, Figs. 6.21, 6.22). In some systems the
clay alteration has a damming effect and so the interface between the competent and incompetent rocks may
represent a locus for higher metal grades (e.g., Binebase, Sangihe Is, Indonesia).
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

Although in most high sulfidation systems copper-gold mineralization post-dates the formation of the zoned
alteration, significant gold and copper mineralization is locally encountered in the clay zones formed during the
initial vapour dominated alteration event (e.g., Zone A, Wafi River, Papua New Guinea; Leach and Erceg, 1990:
Peublo Viejo, Dominican Republic; Muntean et al., 1990). It has been postulated that some metals may partition
into the volatile phase with time (Candela and Piccoli, 1995), and also that under unusually high pressures the
vapour phase can contain significant metal concentrations (Hemley et al., 1992).

d) Mineralization

During the liquid-rich event, sulfide mineralization fills leached vughs and additional open space in fractures and
breccias, and is commonly associated with sulfate (alunite or barite) deposition. The grade of the gold-copper
mineralization may be proportional to the quantity of sulfide breccia matrix in styles of hydrothermal injection
breccias, which grade from fluid upflow to outflow settings as: rotational --> mosaic --> fluidized --> fluidized
crackle --> crackle breccias (Section 3.x.d.4. Fig. 3.22: e.g., Mt Kasi, Fiji; Corbett and Taylor, 1994).

The common sequence of deposition is: sulfate --> iron sulfide --> copper sulfide. The initial liquid-rich brine may
be oxidized and buffered mainly by magmatic gases to deposit early sulfates, whereas sulfides are deposited
from a later, more reducing liquid which is buffered predominantly by the wall rock (Giggenbach, 1991). Sulfide
deposition may display a polyphasal character in which the early deposition of iron sulfides is followed by the
deposition of copper sulfide minerals. A similar sequence of initial iron sulfides and later base metal sulfides is
also characteristic of low sulfidation intrusion-related gold-copper mineralization, especially the deep level
quartz-sulfide gold + copper systems. This sequence of metal deposition is inferred by the authors to reflect
either selective metal partitioning during melt crystallization, or preferential early precipitation of the iron sulfides
from solution relative to the copper sulfides.

Pyrite represents the predominant iron-sulfide mineral phase at all depths, whereas marcasite and melnicovite-
pyrite are common only at shallow levels. Arsenean pyrite is encountered only in marginal argillic and propylitic
alteration zones. In some systems polyphasal pyrite is evident as early coarse pyrite overprinted by later fine
pyrite-quartz, commonly as banded massive sulfide veins or as the matrix to breccias. Copper deposition
typically occurs as the last event, filling vughs, fractures and breccias, generally as overgrowths to earlier pyrite
and sulfates.

High sulfidation systems exhibit zonations in metals and sulfide minerals, both vertically from deep levels
proximal to intrusion source rocks, grading to higher crustal levels, and laterally from silicic core zones, to
marginal argillic-propylitic alteration zones (Fig. 6.4). The Cu:Au ratios decrease from deeper porphyry to higher
epithermal levels. At intermediate depths high sulfidation systems display arsenic-rich compositions, and at very
shallow near surface levels, enrichments in tellurium, antimony and locally mercury are common. The central
quartz-alunite alteration zones are copper-arsenic-rich, whereas the adjacent quartz-pyrophyllite/dickite/kaolinite
alteration commonly contains lead-zinc mineralization.

The zonation in the sulfide minerals reflects that of metals (Fig. 6.4). Hypogene covellite is commonly the main
copper sulfide mineral at deeper levels proximal to the intrusion source (e.g., porphyry zone at Wafi River,
Papua New Guinea), whereas enargite and luzonite occur in more distal environments as the main copper-
bearing minerals in high sulfidation systems (e.g., Zone A, Wafi River and Nena, Frieda River, Papua New
Guinea; Lepanto, Philippines). A transition from enargite to the lower temperature polymorph luzonite occurs in
cool outflow zones (e.g., Nena, Fig. 6.23). Antimony, tellurium, vanadium and mercury substitute for copper and
arsenic at shallow epithermal levels, and form mineral phases such as stibioluzonite, goldfieldite, sulvanite and
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

schwazite respectively (e.g., Mt. Kasi, Fiji; shallow levels at Nena). The occurrence of antimony-, vanadium-,
tellurium- and mercury-bearing mineral phases at epithermal levels in high sulfidation systems is comparable to
shallow levels in many intrusion-related low sulfidation gold deposits.

Generally, the copper sulfide phases become progressively more iron-rich moving from the central quartz zones
to more distal advanced argillic/argillic zones (Fig. 6.4). This zonation is: covellite --> chalcopyrite, at deep levels
(e.g., Wafi River, Papua New Guinea); and enargite/luzonite --> tennantite --> chalcopyrite, at shallow levels
(e.g., Peak Hill, eastern Australia). Galena and sphalerite are common clay-rich zones marginal to the
quartz-alunite cores.

High sulfidation systems in the southwest Pacific are commonly silver-poor (Section 4.e). Gold typically displays
very high fineness (> 900), and occurs at deeper level systems as submicroscopic inclusions in sulfides, in the
lattice of sulfides, or as free native gold or Au-tellurides at shallower level gold deposits. Gold is commonly
associated with the copper minerals, however in some systems significant quantities of gold occur in association
with, and are locally encapsulated within pyrite (e.g., Zone A, Wafi), especially those where it immediately pre-
dates copper mineralization.

ii) High Sulfidation Systems Formed as Shoulders to Porphyry Intrusions

a) Characteristics

Porphyry-related high sulfidation alteration may occur immediately adjacent to the inferred porphyry source for
the acidic fluids (e.g., Horse-Ivaal, Frieda River, Papua New Guinea; Lookout Rocks, New Zealand; Cabang Kiri,
Indonesia). Although also referred to as lithocaps (Sillitoe, 1995b), the term shoulder is preferred here to
account for the exploitation by acidic fluids of fracture permeability at intrusion margins, and adjacent dilational
structures (e.g., Batu Hijau, Indonesia; Lookout Rocks, New Zealand; Horse Ivaal, Frieda River, Papua New
Guinea).

Advanced argillic zones marginal to high-level intrusions are interpreted to form early in the development of the
porphyry-related hydrothermal system. In active porphyry systems in the Philippines (Section 2), hot acidic fluids
form after the zoned propylitic-potassic alteration (e.g., Alto Peak), but pre-date the collapse of surficial waters
(e.g., Palinpinon, Southern Negros).

As outlined above, the progressive increase in acidity upon cooling results in a zonation of alteration mineralogy
away from the intrusion as: mica-andalusite --> pyrophyllite-diaspore --> quartz-alunite. This zonation may be
evident in the topography as silicified (quartz-alunite) ridges distal to the intrusion, and more deeply eroded
valleys in the mica-andalusite alteration proximal to the intrusion. Dilatant fractures at the intrusion contacts
typically act as fluid conduits (e.g., Horse-Ivaal, Frieda River, Papua New Guinea: Lookout Rocks, New Zealand:
Batu Hijau, Indonesia; Meldrum et al., 1994). The term ledges is commonly used to describe silicified zones
which display tabular either vertical or flatly dipping morphologies.

The high alteration temperature in porphyry environments inhibits formation of extremely acidic fluids
(Giggenbach, 1992). Therefore, the silicification formed at depth, lacks the vughy character of residual quartz
formed from rock leaching by very acidic fluids (pH<2) in shallower level ore-related high sulfidation systems.
Corundum is locally encountered in these high temperature alteration zones immediately adjacent to some
intrusions (e.g., Cabang Kiri, Indonesia; Lowder and Dow, 1978). Very coarse grained muscovite may be
associated with advanced argillic alteration, and the intergrowth with alunite is diagnostic of high sulfidation
systems at porphyry depths (T. Leach, unpubl. data). Some high sulfidation systems proximal to source
intrusions are enriched in halogens derived from the magmatic volatiles. This is pronounced in those systems
sourced from more felsic intrusions, and in which mineral phases include topaz (e.g., Bilimoia, Corbett et al.,
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

1994b), dumortierite (after tourmaline, e.g., Island Copper, Mathias et al., 1995), apatite, and zunyite (e.g., Wild
Dog, Section 6.iv.b.1).

Porphyry-related shoulders of high sulfidation (advanced argillic) alteration are typically barren of significant
gold-copper mineralization. It is speculated that the formation of acidic fluids may be initiated under these deep,
high temperature conditions (>300-350oC), but this is not interpreted to represent a favourable environment for
metal deposition which occurs at lower temperatures (<300oC; Hedenquist et al., 1994).

b) Examples

1. Horse-Ivaal, Frieda River Copper, Papua New Guinea

The Horse-Ivaal porphyry copper deposit, within the Frieda River porphyry complex of northwest Papua New
Guinea, is described in detail by Britten (1981) and Leach (unpubl. reports, 1992-1996) and summarised by
Asami and Britten (1980) and Hall et al. (1990). The Horse-Ivaal deposit is centred around the fine grained
Horse microdiorite which has been emplaced into an older diorite porphyry and andesite volcanics. Copper
mineralization, mainly as chalcopyrite, is associated with late sericite-chlorite + anhydrite alteration and veins,
which post-date the formation of quartz stockwork veins and zoned advanced argillic, potassic (biotite + K-
feldspar) and propylitic alteration.

Two zonations in alteration mineralogy are evident at Horse-Ivaal (Figs. 6.5, 6.6):
1. There is a progressive change from potassic alteration characterized by biotite and K-feldspar, laterally to
propylitic alteration characterized at higher levels by actinolite-epidote-albite and albite-biotite at depth. These
alteration assemblages, formed during early stages of development of the hydrothermal system, are indicative of
a progressive temperature decrease (possibly by conduction) away from the intrusion heat source.
2. Phyllic - advanced argillic alteration along the western contact of the Horse microdiorite is zoned from deeper
to shallow levels as: quartz-andalusite-mica/sericite --> quartz-andalusite-diaspore -->
quartz-pyrophyllite-diaspore --> quartz-alunite-pyrophyllite-diaspore. Figure 6.3 illustrates that this zonation is
indicative of a progressive decrease in fluid pH, interpreted to result from gradual disproportionation of magmatic
volatiles, which evolved from the crystallising melt, and migrated along the same structures that facilitated the
emplacement of the pluton.

The shoulder of advanced argillic alteration formed peripheral to the Horse-Ivaal porphyry copper-gold deposit,
is typical of many other similar zones of high sulfidation alteration in the southwest Pacific rim, in which the fluid
chemistry is dominated by sulfur in the form of SO 2. The unmineralized nature of the Horse-Ivaal high sulfidation
alteration may result from the high alteration temperature (>350-400oC, based on andalusite; Sverjensky et al.,
1991), which would prohibit the deposition of mineralization (Hemley et al., 1992). Local copper mineralization
hosted in advanced argillic alteration at Ivaal is associated with later cross cutting chalcopyrite-sericite veinlets
(T. Leach, unpubl. data).

2. Lookout Rocks, New Zealand

A jog in the Hauraki graben fault which separates the Hauraki graben from the Coromandel Peninsula hosts the
Ohio Creek copper-gold porphyry, the Lookout Rocks high sulfidation shoulder, and the Thames 1.3 million oz
gold deposit (Figs. 7.47, 7.48). Dextral movement on the graben structures, associated with oblique
convergence, has produced a series of dilational fractures which host ledges of high sulfidation alteration formed
as shoulders adjacent to the Ohio Creek porphyry and the auriferous quartz veins in a more distal setting at
Thames (Fig. 7.48).
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

Scout drilling in the 1970's defined copper-gold-molybdenum mineralization associated with the Ohio Creek
porphyry (Merchant, 1986). The copper mineralization occurs in narrow quartz stockwork veins typically hosted
near intrusion contacts of the quartz diorite porphyry stock and host andesitic volcanics. The mineralization does
not extend into the Lookout Rocks high sulfidation alteration to the southeast (Fig. 6.7). Auriferous quartz-sulfide
veins (e.g., Kaiser Reef) occur in the andesitic host rocks adjacent to the Ohio Creek porphyry (Merchant, 1986)
and were the target of small scale mining last century.

Immediately southeast of the Ohio Creek porphyry, a number of discrete dipping ledges of advanced argillic
alteration which form the Lookout Rocks occur as an arcuate series of silicified ridges extending over an
elevation of several hundred metres, and for a strike distance of over 1000 m (Figs. 7.48, 6.7). The alteration
mineralogy comprises assemblages which are zoned from depth adjacent to the Ohio Creek porphyry towards
the southeast and higher elevations in the volcanic rocks (Fig. 6.7) as: epidote-chlorite (propylitic),
chlorite-sericite (intermediate argillic), sericite-andalusite-quartz + tourmaline-apatite-pyrophyllite (phyllic),
pyrophyllite-diaspore-quartz (advanced argillic). Further to the south and east, the pyrophyllite-diaspore
assemblages grade into intensely silicified zones dominated by progressively more abundant alunite as alunite +
pyrophyllite-diaspore alteration (Figs. 6.7, 6.8). These zonations in alteration mineralogy are indicative of a
gradual decrease in fluid pH from deeper porphyry levels to shallow levels at Lookout Rocks (Fig. 6.3).

Cooling and neutralization of this hot acidic fluid continued towards the southeast and formed dickite-kaolinite,
illitic clays, and chlorite-carbonate + illitic clays (outer propylitic) alteration assemblages. The presence of
andalusite, tourmaline and apatite demonstrate that the alteration at Lookout Rocks took place at high
temperatures from fluids containing a significant magmatic component. It is interpreted that changes in fluid pH
resulted from the progressive disproportionation of reactive magmatic volatiles emanating from the magmatic
source. These volatiles were channelled along ring fractures and then into the dilatant structures to form the
ledges by reaction with ground waters. Quartz-sulfide veins occur adjacent to the Ohio Creek porphyry which is
cut by late stage andesite dikes (Merchant, 1986). Gold mineralization in the distal quartz reefs is discussed in
Section 7.iv.d.2.

3. Vuda, Fiji

High sulfidation alteration in the Vuda Valley, eastern Viti Levu, Fiji (Figs. 1.2, 6.9), has been explored for
porphyry copper and epithermal gold mineralization (Colley and Flint, 1995). Minor gold production is recorded
from several small, mainly pre-World War II mines located outside the high sulfidation alteration. Some of the
early exploration data (G. Corbett, unpubl. data, 1985; Austpac Gold Prospectus, 1986) has been reinterpreted
in the light of new models.

Late Miocene shoshonitic lavas and autoclastic breccias dominate as host rocks, and recent gravity data is
consistent with a continuation of outcropping intrusive rocks, to depth below the alteration zone (Colley and Flint,
1995). The alteration is zoned about feeder structures which occur as arcuate siliceous ridges and may
represent caldera ring fractures. Alteration grades laterally through: quartz-alunite, to pyrophyllite, coarse
grained euhedral diaspore, and clay dominant assemblages (Figs. 6.9, 6.10). Zonation to lower temperature
high sulfidation alteration to the north and a propylitic altered intrusion to the south combined with the overall
shape of the alteration system, are indicative of possible northward tilting (Fig. 6.9).

Extensive trenching and drilling in 1985-87 showed that the acid alteration is essentially barren, and from the
style and nature of the alteration, the system formed at too high a temperature to be regarded as epithermal (in
the then terminology). Most gold mineralization in the district occurs outside the high sulfidation alteration,
typically with adularia, on fractures and within vughs, in relatively fresh rock. Minor gold in the altered areas may
have formed by the overprinting of clay alteration on existing mineralization. The Natalau was the most
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

significant mine with a production of 880 ounces of gold to 1954 (Colley and Flint, 1995). Here, gold
mineralization is associated with pyrite and base metal sulfides, which have exploited pre-existing structures on
the margins of a mafic dike (S. Henderson, pers commun., 1993). Lawrence (1984) describes the fineness of the
Natalau gold as 850, which along with the mineralogy, is typical of gold found in low sulfidation quartz-sulfide
gold + copper style mineralization formed peripheral to porphyry intrusions, rather than in the low sulfidation
epithermal environment (Fig. 4.8). Drilling intersected porphyry-related phyllic (sericite-anhydrite-quartz), argillic
altered clay matrix breccias, and propylitic alteration in the footwall of the feeder structures for the high
sulfidation alteration.

It is proposed herein (Fig. 6.10) that the high sulfidation alteration formed within feeder structures above and
subjacent to a shallow intrusion, now evident on the gravity data (Colley and Flint, 1995). Gold mineralization at
the Natalau mine is interpreted to be of the quartz-sulfide + copper style (Section 7.ii), which typically forms
peripheral to many Pacific rim porphyry intrusions, and grades to localized distal low sulfidation porphyry-related
epithermal gold mineralization (Section 7.iv). Vuda was targeted as epithermal style gold mineralization from the
association of gold, adularia and alunite (Austpac Gold Prospectus, 1986). However, potassium-rich shoshonitic
host rocks readily deposit secondary K-feldspar, and so adularia need not be indicative of gold deposition by
boiling in an epithermal environment. The alunite is now interpreted to be of a high temperature, rather than a
low temperature acid sulfate origin, typical of epithermal settings (Section 8).

4. Cabang Kiri, Indonesia

Copper mineralization at Cabang Kiri in the Tombulilato district, North Sulawesi, Indonesia (Fig. 1.2) is hosted in
quartz stockwork veins which extend out from cylindrical quartz diorite porphyry stocks into surrounding
metavolcanics (Carlile and Kirkegaard, 1985). Pervasive advanced argillic alteration occurs within the porphyry
intrusions, and in structurally-controlled zones in the andesitic host rocks. It grades as zones outwards from an
inner core as: andalusite-corundum-muscovite, andalusite-pyrophyllite/muscovite, andalusite-pyrophyllite-
diaspore, diaspore-pyrophyllite, diaspore-pyrophyllite-alunite, alunite-kaolinite-pyrophyllite, and peripheral silica-
alunite-kaolinite (Lowder and Dow, 1978). This zonation in high sulfidation-style alteration is indicative of
progressive cooling and decrease in fluid pH away from the porphyry intrusions (Fig. 6.3).

iii) Lithologically Controlled High Sulfidation Gold-Copper Systems

a) Characteristics

Lithologically controlled high sulfidation alteration forms as magmatic fluids migrate up dilatant structures then
pass laterally along permeable host rocks such as coarse grained pyroclastics (e.g., Nansatsu deposits, Japan;
Gidginbung, Dobroyde, and Mt. MacKenzie, eastern Australia) or permeable sediments and diatreme breccias
(e.g., Pueblo Viejo, Dominician Republic; Wafi River, Papua New Guinea). In many systems diffusion of the
upwelling hot acidic fluids within the permeable host rocks creates relatively broad alteration zones (e.g., Wafi
River), whereas sharp alteration zones are present at the contacts with less permeable host rocks (e.g.,
Nansatsu Deposits). In most cases mineralization post-dates alteration and is concentrated in the fractured and
brecciated core residual and silica-alunite alteration (e.g. Nansatsu deposits; Hedenquist et al., 1994). In some
systems (e.g., Zone A, Wafi River) mineralization occurs initially during the progressive cooling and
neutralization of the fluids as a halo to the zoned alteration system. Sites of high fluid flow or rapid quenching
may produce the higher grade zones.

b) Examples

Several high sulfidation systems occur in the Lachlan fold belt of eastern Australia. Mt. Mackenzie and Clive
Creek exhibit predominantly lithological controls to high sulfidation alteration and mineralization and are hosted
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in Devonian, shallow dipping coarse grained andesite to dacite pyroclastics (T. Leach, unpubl. data). The
Gidginbung (Temora) high sulfidation deposit (Thompson et al., 1986) displays a predominantly lithological
control to the alteration within a volcaniclastic breccia unit (Lawrie et al., 1997), although elongate along an arc
parallel structure or shear zone (Allibone et al., 1995). Dobroyde (White 1991; T. Leach, unpubl. data) and Peak
Hill (below) display composite structural-lithological controls to the high sulfidation alteration and mineralization.

1. Wafi River, Papua New Guinea

The Wafi Project comprises high sulfidation gold and porphyry copper-gold mineralization (Fig. 6.12). The
following discussion of the Wafi River lithologically controlled high sulfidation gold system is taken from Leach
and Erceg (1990), Erceg et al. (1991), and CRA (1994). The discussion on the Wafi River porphyry copper-gold
system is taken from Tan-Loi and Andrews (in review) and T. Leach, unpublished reports (1990-1995).

The Wafi Transfer Structure, a major crustal structure, localized overprinting microdiorite and quartz diorite
porphyry intrusions, and a diatreme-flow dome complex which were emplaced into low grade Mesozoic Owen
Stanley metamorphics comprising siltstones, litharenites and conglomerates (Figs. 6.11, 6.12). The magnitude
of the Wafi Transfer Structure is evident in the manner in which it separates the western and eastern segments
of the New Guinea Orogen and provides a sinistral offset to the Markham fault, a plate boundary to the north of
Wafi (Fig. 6.11; Corbett, 1994).

In the Wafi River lithologically controlled high sulfidation gold system, surface alteration comprises concentric
zones of advanced argillic and argillic alteration which are elongated roughly parallel to the transfer structures
and extend over an area of 4 square km (Fig. 6.12). Permeability provided by the clastic metasediments,
enhanced by fracturing in association with diatreme emplacement and also the diatreme and intrusion breccias,
has allowed dispersion of hot acidic fluids over a large area. Alteration assemblages grade outwards as zones
of: residual quartz, quartz-alunite, alunite-pyrophyllite or alunite-dickite, pyrophyllite or dickite, dickite/kaolinite-
illitic clay zones, to peripheral interlayered clay and/or chlorite. This zonation has been interpreted (Leach and
Erceg, 1990) to be indicative of progressive cooling and neutralization of a hot acidic fluid, sourced from the east
at depth and radiated outward, to define the elongate alteration (Figs. 6.12, 6.13).

Although low grade gold is disseminated throughout much of the alteration, zones of more significant gold
mineralization occur around the margins of the diatreme complex (Zones A, B, and D, Fig. 6.12), in structurally
controlled breccias (Zone C) which cross cut the diatreme complex, and in distal settings (Malaria and Hesson
Creek Zones) aligned along the NNE-NE trending transfer structures. Gold in these zones occurs in two
settings, interpreted to be related to two separate events of the same high sulfidation system as:
i) Disseminated auriferous pyrite mineralization within alunite-dickite and clay alteration zones is inferred to be
related to the initial formation of the zoned advanced argillic alteration, and associated with the influx of hot
acidic volatile-dominated fluids.
ii) A later phase is hosted in pyritic fractures and breccias which cross cut the zoned alteration and was
deposited from mineralized brines.

The occurrence of two distinct styles of gold mineralization at Wafi is unusual in high sulfidation systems, but not
unique. Gold mineralization in the Pueblo Viejo high sulfidation system, Dominican Republic, is similarly
attributed to two pulses of mineralized magmatic fluids: one associated with disseminated pyrite in clay-alunite
alteration zones at depth, and the other hosted in pyritic veins at shallower levels (Muntean et al., 1990). Gold in
Zone A at Wafi (>15 Mt at 2.6 g/t Au; Erceg et al., 1991) is refractory and generally submicroscopic, although a
few minute (1-3 micron) inclusions have been observed in pyrite both disseminated in the altered
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 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

sediments, and filling fractured and brecciated metamorphic quartz veins. Copper mineralization in Zone A
occurs in trace amounts as enargite and luzonite in the quartz-alunite-dickite alteration, and as tennantite, with
base metal sulfides, in the peripheral argillic alteration. Fluid inclusion data on sphalerite associated with the
acidic alteration indicates that mineralization took place under cool (200-220oC) epithermal conditions.

A blind mineralized diorite to quartz diorite porphyry stock was encountered at Wafi 800 m NE of Zone A,
beneath a leached cap during a conceptual drill programme which targeted a potential fluid upflow for the high
sulfidation alteration and mineralization (G. Corbett, unpubl. report, 1990; Erceg et al., 1991). The initial drill
intercept in the porphyry copper intrusion, drill hole WR 95, yielded published results of 263 m at 1.86 percent
Cu and 0.27 g/t Au (Elders Resources, press release, 1990).

The Wafi porphyry copper-gold project comprises an early porphyry copper-gold system similar to other
southwest Pacific porphyry systems (Section 5.i) which has been overprinted by a later a high sulfidation gold
system. The porphyry copper-gold system consists of early alteration which is zoned outward from the porphyry
stock to host sediments as: potassic (biotite-quartz-K-feldspar) --> inner propylitic (actinolite-epidote) -->
propylitic (chlorite ± epidote). Porphyry-related quartz veins form a dense stockwork around the intrusion
carapace (up to 90% of the rock), as sheeted fractures along the intrusion margin, and rare as veins in the core
of the stock, and diminish in intensity outward into the altered sediments. K-feldspar selvages are common
adjacent to the quartz veins which cut biotite altered sediments. Porphyry-style chalcopyrite ± bornite ± gold ±
molybdenite mineralization is associated with late stage veinlets and wall rock alteration which range from: early
biotite-K-feldspar ± quartz ± pyrite ± magnetite, to chlorite-pyrite ± magnetite, to late sericite-quartz-pyrite.

The high sulfidation system has produced vertically zoned advanced argillic, phyllic and argillic alteration which
overprinted the earlier porphyry-related alteration. The high sulfidation alteration is zoned from shallower levels
and to the southeast to deeper levels and to the northwest as: residual quartz --> quartz-alunite --> quartz-
alunite-dickite --> quartz-dickite-sericite --> kaolinite-illitic clay-quartz --> smectite ± chlorite ± siderite (Fig.
6.14). This zonation reflects progressive cooling and neutralization of a hypogene hot acidic fluid, probably in
response to rock reaction. The earlier porphyry-related alteration is totally masked by the very intense advanced
argillic alteration at shallow levels, whereas relict potassic and propylitic alteration are evident at depth in the
less intense overprinting argillic alteration.

Copper mineralization associated with the high sulfidation system occurs in late fractures and as disseminated
grains in the altered wall rock. This mineralization is zoned as: enargite-tennantite in the shallow quartz and
alunite alteration, covellite in the dickite-sericite alteration, and chalcopyrite in the deeper kaolinite-illitic clay-
smectite alteration. Pyrite occurs in all alteration assemblages and preliminary metallurgical tests indicate that
approximately 50 percent of the gold mineralization is associated with the high sulfidation pyrite.

Two main episodes of hydrothermal alteration and mineralization are therefore recognised at Wafi as:

i) A porphyry copper system with classical temporally and spatially zoned alteration and mineralization. K/Ar
dating on K-feldspar gave 14 Ma age for this event.

ii) High sulfidation alteration and mineralization overprinted the porphyry event around 1 m.y. later (13 Ma K/Ar
age on alunite). It is interpreted that the high sulfidation system caused the remobilization of pre-existing
porphyry-related copper into zoned enargite-tennantite, covellite and chalcopyrite mineralization in a similar
manner to that proposed for Butte, Montana (Brimwall and Ghiorso, 1983) and El Salvador, Chile (Gustafson
and Hunt, 1975). Gold has been introduced during the high sulfidation event as pyrite within the porphyry stock
and in the surrounding gold zones (Zone A, B, C, etc.).
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 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

2. Nansatsu deposits, Japan

The following discussion of the Nansatsu deposits in southern Kyushu, Japan, is derived from reviews
(Hedenquist et al., 1988, 1994; Matsuhisa et al., 1990; White 1991; Izawa and Cunningham, 1989) and personal
observations (G. Corbett, unpubl. report, 1987). The deposits are characteristically small, mushroom-shaped
bodies, and there are three recent producers: Kasuga (0.15 M oz Au), Iwato (0.21 M oz Au) and Akeshi (0.22 M
oz Au). All have low gold grades in the order of 3-4 g/t Au, but locally contain higher grades within feeder
structures, as at Kasuga (Hedenquist et al., 1988), or breccias (Izawa and Cunningham, 1989). The silica-rich
ores are used as fluxes in copper smelters.

The Nansatsu deposits are interpreted to have formed within 150-300 m below the paleowater table (Hedenquist
et al., 1994) based on: the slightly younger (0.5 m.y.; Hedenquist et al., 1994) age of the alteration than the host
Upper Miocene-Pliocene host volcanic sequence, presence of low temperature (kaolinite, smectite) alteration at
shallow levels, and interpreted eruption breccias (Izawa and Cunningham, 1989).

Hot acid magmatic-sourced fluids migrated from feeder structures into more permeable pyroclastic units in a
volcanic sequence dominated by andesite flow units, and formed tabular-shaped silicified bodies (Fig. 6.15).
Cooling and neutralization of those fluids by rock reaction is reflected by a characteristic zoned alteration pattern
from: a core of residual quartz through alunite-kaolinite, to a rim of illite, illite-smectite, and smectite clays,
commonly with sharp contacts (Fig. 6.15). Ore-related sulfides and sulfosalts occur in fissures and breccias
which cross cut the central quartz zone, and fill vughs (Hedenquist et al., 1994). Gold occurs within the residual
silica with pyrite, enargite (luzonite), covellite, native sulfur and later iron oxides. Fluid inclusion and clay
alteration studies suggest mineralization temperatures of 170-210oC (Hedenquist et al., 1994; Izawa and
Cunningham, 1989), which are consistent with a shallow epithermal setting. The fluid inclusion temperatures are
locally higher (250-300oC) within deeper levels at Kasuga (Hedenquist et al., 1994).

FIG 6.15
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

3. Miwah, Indonesia

The Miwah lithologically controlled high sulfidation system shows some similarities to Wafi and also the Lepanto
structurally controlled high sulfidation gold-copper system. It is located in northern Sumatra, Indonesia, in a
region of dextral strike-slip faulting related to movement on the Sumatra fault system (Fig. 1.2). The following
discussion on Miwah is taken from Williamson and Fleming (1995) and unpublished reports (T. Leach, Graham
Corlett).

Alteration and gold mineralization are hosted in a sequence of andesitic to dacitic lavas and tuffs of the Pliocene
Leuping Volcanics. These volcanics are aligned ENE along the Miwah lineament, and are paralleled by a similar
trend of recent to active volcanism to the north. Dilation on ENE structures is inferred from dextral movement on
the Sumatra fault system. The Leuping Volcanics have been intruded by porphyritic andesite to rhyodacite dikes
and domes (Fig. 6.16), which are dated by K/Ar methods at 2.9 Ma. These intrusions contain a wide variety of
xenolith clasts which range from andesite and diorite porphyry, to K-feldspar-magnetite altered volcanics. In the
south and west regions of the prospect, the volcanics are intruded by a diatreme breccia complex which
contains local dacitic material and quartz-veined andesite clasts. Some of the quartz in the veins contain
inclusions of anhydrite and halite daughter crystals associated with liquid-and vapour-dominated fluid inclusions,
which suggest formation in an environment proximal to a high level intrusion.

The volcanics, domes, dikes and diatremes have been altered by extensive advanced argillic - argillic alteration
which is zoned from: central vughy to dense quartz-rutile-pyrite, quartz-alunite, through marginal zones of
quartz-kaolinite, low temperature illite-smectite, to peripheral chlorite/chlorite-smectite assemblages. This
alteration overprints earlier propylitic, and locally phyllic, alteration. The quartz and quartz-alunite alteration
(Figs. 6.16, 6.17) occur as:
i) Restricted zones within inferred NNW trending structures which parallel the Rusa fault and crop out on the
eastern margins of the prospect.
ii) Less dominant NNE trending structures which crop out as thin ridges, parallel to the Camp fault.
iii) Broad zones within the diatreme breccias, possibly as a reflection of the high permeability in the breccia
matrix.
iv) Shallow (up to >100 m thick) north to northeast dipping ledges, hosted in volcanics.

The quartz and quartz-alunite alteration have acted as brittle host rocks during subsequent fracturing and
brecciation associated with mineralization which changes from early pyrite-rich quartz veins, to later breccia
zones and veins composed of brassy pyrite, overgrown by copper sulfide minerals. Copper minerals are
dominated by luzonite at shallow levels to the south, and enargite at deeper levels to the north. Hypogene
covellite occurs locally at depth, whereas tennantite occurs in more distal settings to the east. The copper
minerals are intergrown with quartz and banded chalcedony, and locally at depth with alunite. Native sulfur
commonly fills open cavities and fractures. The alteration and mineralization are indicative of relatively cool
conditions for the high sulfidation alteration and mineralization.

Although there is a close relationship between gold, copper and arsenic, gold is not always associated with
enargite/luzonite, and is locally inferred (T. Leach, unpubl. reports) to have been deposited with earlier pyrite.
The assay data from recent drilling indicate that the Cu:Au ratios increase with depth and to the north.
Information from the structure, alteration and mineralization suggest that a possible source for hot acidic,
mineralized fluids was from the north and at depth below the diatreme breccia, and fluid outflow occurred
towards the south (Figs. 6.16, 6.17).
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

iv) Structurally Controlled High Sulfidation Gold-Copper Systems

a) Characteristics

High sulfidation systems which display a predominantly structural control form if the permeability for lateral fluid
flow is provided by dilational fault/fracture systems (e.g., Nena, Frieda River, Papua New Guinea), and/or
breccias (e.g., Mt Kasi, Fiji), including diatreme breccia margins (e.g., Lepanto, Philippines). In most structurally
controlled high sulfidation systems, central residual (vughy) quartz and marginal quartz-alunite assemblages,
form bulbous alteration zones surrounded by thin argillic zones, which grade out into regional propylitic
alteration, when viewed in cross section. The thin outer alteration zones are indicative of rapid changes in fluid
conditions, moving away from the dilational structures which control fluid flow. Many systems are elongate along
dilational structures (e.g., Lepanto), commonly as resistive ridges of silica-alunite (e.g., Nena). The overprinting
relationship of the vapour-derived alteration and the subsequent liquid-derived mineralization is generally more
clearly evident in the structurally than lithologically controlled high sulfidation systems. The utilization of the
same plumbing system focuses mineralized fluid into the core of the zoned alteration where the competent
residual silica readily brecciates. The surrounding clay alteration is less competent and impermeable and so
commonly remains unmineralized and may mask mineralization (e.g., Nena, Papua New Guinea). Breccias,
categorised as rotational, grading to mosaic (jigsaw) and fluidized breccia dikes (Section 3.x.d.4, Fig. 3.22), are
indicative of fluid transport in feeder structures, and commonly grade to crackle breccias towards the periphery
of the mineralized zones. Metal contents decline moving away from the feeder structures in proportion to the
sulfide content.

b) Examples

1. Nena, Frieda River Copper, Papua New Guinea

The Nena Prospect at Frieda River Copper is an example of a structurally controlled high sulfidation system,
recently described by Bainbridge et al. (1993, 1994), from which this discussion is taken. A total sulfide resource
of 60 Mt at 2.0 percent Cu and 0.6 g/t Au, and an oxide gold resource of 14.5 Mt at 1.4 g/t Au has been defined
for Nena (Holtzberger et al., 1996).

Exploration at Frieda River up to 1983 inferred a porphyry copper resource of 860 Mt at 0.47 percent Cu and
0.31 g/t Au within the Koki and Horse-Ivaal deposits, and 32 Mt at 2.35 percent Cu and 0.58 g/t Au within the
Nena high sulfidation deposit, located 6 km northeast of the porphyry deposits (Hall et al., 1990). A better
understanding of high sulfidation gold-copper mineralization and the relationship to buried porphyry copper
intrusions, in particular Lepanto, Philippines (Garcia, 1991; Arribas et al., 1995) and Wafi, Papua New Guinea
(Leach and Erceg, 1990; Erceg et al., 1991), led to a re-evaluation of the Nena mineralization in the early 1990's
(G. Corbett, unpubl. reports, 1990-1993; T. Leach, unpubl. reports, 1990-1996; Bainbridge et al., 1993, 1994).

The Nena Prospect occurs on the margin of the Frieda River porphyry copper intrusion complex which is
inferred to have been localized by the NW trending Frieda fault, formed as a splay fault from the more regional
EW trending Leonard-Schultz fault (Corbett, 1994; Fig. 6.18). An inferred dextral movement has imparted a
dilational character to the set of NW-trending structures between the Frieda and Leonard-Schultz faults, and this
is termed the Nena structural corridor (Corbett, 1994; Figs. 6.18, 6.19). These structures host a series of quartz
and quartz-alunite ridges which extend for over 10 km from the Horse-Ivaal porphyry copper deposits and
include the Nena high sulfidation system (Figs. 6.19, 6.20). This comprises an elongate NW trending
characteristic bulbous alteration (in cross section) which, at grid 4700N, grades outward as zones of: central
mineralized residual (vughy) quartz, barren quartz-alunite (locally sulfur-bearing), thin zones of pyrophyllite-
dickite-kaolinite, interlayered illite-smectite and carbonate-gypsum-chlorite (Fig. 6.21). The concentric
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

morphology of the alteration (in cross section) is consistent with lateral fluid flow along the controlling structure.
However, at 500 m to the northeast (grid 5200N, Fig. 6.22), steeply dipping sheeted zones of quartz and quartz-
alunite are indicative of near vertical fluid flow.

The alteration is interpreted to be derived from acid leaching by an initial vapour-rich magmatic fluid phase which
migrated upwards and then laterally southeast along the NW-trending dilational feeder structures. The gradation
from broad central zones of residual (vughy) quartz outward to quartz-alunite alteration is postulated to be
derived from the progressive cooling and neutralization of this acidic fluid by rock reaction. The thin zones of
peripheral clay alteration are inferred to result from the rapid change in fluid physico-chemistry upon mixing with
circulating meteoric-dominated fluids. The permeable volcaniclastic units within a sequence interlayered with
lavas are preferentially silicified, suggesting that the intersection of the Nena structure with the pyroclastic units
may represent the locus of fluid flow.

Copper and gold mineralization are associated with a later, magmatically-derived fluid which has used the same
feeder structures as the earlier phase, and brecciated the competent residual (vughy) quartz. Fractures, and
open space in breccias and vughs, were initially sealed by multiple phases of pyrite. Copper mineralization
occurs in cavities and fractures in the pyrite, in places intergrown, and locally rhythmically banded with, barite.
Intense brecciation, and local fluidized breccias, accompany high grade copper mineralization within the central
residual (vughy) silica alteration, whereas mineralization in the peripheral quartz-alunite alteration, is more
fracture controlled and displays lower metal grades.

Initial fluid inclusion studies (Bainbridge et al., 1994) on barite associated with copper mineralization indicate
that the mineralized fluid was two phase, relatively hot (>300-350oC) and moderately saline (>9-10 wt % equiv.
NaCl), and that mineralization probably resulted from rapid cooling upon mixing with low temperature (<150-
200oC), dilute (<1-2 wt % NaCl) meteoric waters.

The copper minerals vary laterally (Fig. 6.23), from Mount Nena in the NW to the SE as zones of: hypogene
covellite + enargite, enargite, luzonite > enargite, and only luzonite at shallow levels. Covellite formed early in
the paragenetic sequence and is locally altered to enargite. Cu:Au ratios in the sulfide zone decrease from NW
to SE, and from deeper to shallow levels in the southern regions. Luzonite becomes progressively Sb- and Te-
rich at shallow levels implying solid solution series with stibioluzonite and goldfieldite. Gold is inferred to occur in
association with luzonite-goldfieldite as well as with late stage pyrite. These changes in metals and ore phases,
together with the change in the morphology of alteration outlined above, suggest that magmatic-derived vapours
and brines, which produced the alteration and mineralization, possibly ascended from depth in the region
beneath Mount Nena and flowed laterally to the southeast (Fig. 6.20).

Supergene leaching formed an oxidized zone of gold enrichment and copper depletion which overlies
supergene covellite-chalcocite enrichment. Supergene native gold displays a very high fineness and occurs as
minute grains which fill fractures in the gold-rich oxide zone.

2. Lepanto-Far South East (FSE), Philippines

The Lepanto high sulfidation enargite gold deposit (production and reserves of 33 million tonnes at 2.2% Cu, 3.5
g/t Au, and 11 g/t Ag; Sillitoe, 1995c) in the Philippines is located 200-400 m to the northwest (Fig. 6.24) and
400 m above (Fig. 6.25) the high grade Far Southeast (FSE) porphyry copper deposit (356 million tonnes at
0.73% Cu, and 1.24 g/t Au; Concepcion and Cinco, 1989).

The Lepanto high sulfidation system is localized by the intersection of the dilatant Lepanto fault with the
fractured contact between the diatreme breccia and host rocks, to give an oval plate-like shape (Figs. 6.24,
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 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

6.25). The Philippine fault, a major sinistral transpressional terrain boundary with a protracted history of activity,
breaks up into several splays which parallel the magmatic arc in Luzon (Figs. 1.2, 2.5; Mitchell and Leach,
1991). NS trending inferred splays, the Abra and Pseudo faults (Baker, 1992) constrain NW trending structures
(Garcia, 1991) in the mine area (Fig. 6.24). The sinistral movement presented by Baker (1992) for the Pseudo
fault coupled with the Abra fault are interpreted to have dilated the subsidiary Lepanto fault (Fig. 6.24), for which
Baker (1992) also records a sinistral sense of movement. The pyroclastic and dacite porphyry rocks of Garcia
(1991) are interpreted as diatreme breccias and endogenous domes respectively (Baker, 1992), and it is
possible that there are both pre- and post-mineralization diatremes in the area (Figs 6.24, 6.25).

The FSE porphyry may be localized at the intersection of the Lepanto fault formed as a splay, with the arc
parallel Pseudo fault (Fig. 6.24), similar to the inferred localization of porphyry mineralization at Frieda, Papua
New Guinea (Fig. 6.18), and at Chuquicamata, Chile (Boric et al., 1990). Porphyry copper-gold mineralization at
Guinaoang (Fig. 6.24), 6 km to the southeast of FSE, is hosted at depth in a chlorite-sericite altered quartz
diorite stock, and at shallow levels in advanced argillic altered volcanics, a post-mineral diatreme locally cuts
altered volcanics at shallow levels (Sillitoe and Angeles, 1985).

Three phases of intrusion inferred for Lepanto-FSE are:

i) The emplacement of the funnel shaped Imbanguila dacite porphyry and associated diatreme breccia which
flares at shallow levels to the NW (Garcia, 1991; Baker, 1992), and is dated at 1.8-2.9 Ma (Sillitoe and Angeles,
1985; Arribas et al., 1995).
ii) Narrow dikes and irregular bodies of quartz diorite porphyry (the FSE porphyry) were emplaced at depth (2
km below the current surface) into mid Miocene volcaniclastics. Associated biotite alteration extends for 100 m
from the diorite contact, and grades outwards to propylitic epidote-calcite-chlorite alteration (Garcia, 1991). The
age of biotite (1.34-1.45 Ma, average 1.41 Ma; Arribas et al., 1995) suggests that the emplacement of the FSE
porphyry stock postdates the Imbanguila diatreme-dome complex. Quartz veins associated with crystallization of
these intrusions were deposited from hot (>500oC) and hypersaline brines (Mancano and Campbell, 1995).
iii) The barren Bato dacite dome and associated tuffaceous diatreme breccias are dated at 0.96 and 1.18 Ma
(Arribas et al., 1995).

Three styles of alteration and mineralization recognised at Lepanto-FSE are:

i) High sulfidation enargite-luzonite mineralization is hosted within central vughy to massive quartz zones of
advanced argillic alteration localized at the intersection of faults and fractures (of the Lepanto fault) and the
contact between the diatreme and underlying volcaniclastics. Zoned alteration and mineralization at Lepanto
have been described in detail by Garcia (1991) as: central vughy to massive quartz alteration which grades
outward through zones of quartz-alunite-kaolinite, kaolinite, to peripheral smectite-illite and chlorite alteration.
The dacite porphyry displays quartz-pyrite-anhydrite grading outward to marginal quartz-alunite-kaolinite
alteration at intrusion margins and cross cutting faults.

A steep hydrothermal breccia pipe cuts the FSE diorite and the Imbanguila dacite and exhibits alteration grading
from sericite-tourmaline at depth, to anhydrite-alunite (+ diaspore, pyrophyllite, zunyite and illite) at shallow
levels. This advanced argillic alteration extends beyond the breccia and grades laterally from: central quartz-
alunite-zunyite, through pyrophyllite-diaspore, to marginal illite-chlorite. K/Ar dating (Arribas et al., 1995) on five
wall rock alunites gave ages of 1.34-1.56 Ma (average of 1.43 Ma), which are close to the age of formation of
the hydrothermal biotite (above).

High sulfidation enargite-luzonite mineralization at Lepanto (Fig. 6.25) is hosted within the: central vughy to
massive quartz of the zoned advanced argillic alteration, alunite-anhydrite hydrothermal breccia, along the
intersection of the Lepanto fault and diatreme-metavolcanic contact (branched veins or classical ore), flat lying
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

bodies which replace calcareous sediments (stratabound ore), fault-controlled zones which cut the Imbanguila
dacite (Easterlies), and silicified lenticular to pod-like bodies which are hosted in permeable breccias (stratiform
ore). Two alunite samples from sulfide veins gave average ages of 1.26 Ma (Arribas et al., 1995). Gold
developed late and in association with tennantite, chalcopyrite, stibnite and tellurides (Garcia, 1991).

Homogenisation analyses on fluid inclusions in enargite/luzonite from Lepanto (Mancano and Campbell, 1995)
range from an average of 285oC within the hydrothermal breccia proximal to the FSE porphyry dikes, to an
average of 166oC distal (>2 km) from the FSE porphyry deposit. These authors concluded that enargite/luzonite
mineralization at Lepanto resulted from metal-bearing high temperature (>300oC) moderately saline (>4.5 wt %
NaCl) waters mixing with ground waters. The fluid inclusion data suggest that the high temperature, hypersaline
brines, which formed the early quartz stockwork veins at FSE, were not directly associated with enargite
mineralization at Lepanto.

ii) Porphyry copper-gold chalcopyrite-bornite mineralization hosted within and adjacent to the FSE quartz diorite
is related to chlorite-illite/sericite-clay alteration which postdates the quartz veins and biotite alteration (Garcia,
1991). Gold occurs as inclusions within, and overgrowing, copper sulfides. K/Ar dating (Arribas et al., 1995) on
illite gave ages of 1.22-1.37 Ma (average of 1.30 Ma), generally younger than the formation of the hydrothermal
biotite and wall rock alunite alteration (average 1.41 Ma and 1.43 Ma respectively), but close to the average age
of vein alunite associated with the high sulfidation enargite/luzonite mineralization (1.26 Ma).

iii) Low sulfidation gold pyrite- and base metal-quartz veins and stringers locally postdate the high sulfidation
mineralization (Garcia, 1991).

In conclusion, from the above data, it is herein postulated that cooling and crystallization of the FSE quartz
diorite porphyry bodies was accompanied by potassic (biotite) alteration, the exsolution of magmatic volatiles
and the formation of quartz stockwork and sheeted veins. The change in alteration in the hydrothermal breccia
pipe from sericite-tourmaline at depth to alunite-pyrophyllite-diaspore (+ zunyite) at shallower levels suggests
that magmatic volatiles ascended to shallow and cooler levels and were absorbed into meteoric water to
progressively form hot acidic fluids. It is postulated that these fluids then migrated laterally along the intersection
of the Lepanto fault and the diatreme-metavolcanic contact to develop the zoned high sulfidation alteration by
rock reaction. K/Ar age dating suggests that the porphyry-related biotite and the high sulfidation alteration
events were roughly contemporaneous (biotite, 1.34-1.45 Ma, average 1.41 Ma; alunite, 1.34-1.56 Ma, average
1.43 Ma).

Age dating also suggests that copper-gold mineralization associated with chlorite-illite alteration in the FSE
porphyry copper environment, and with alunite deposition in the Lepanto high sulfidation environment took place
more or less contemporaneously (illite, 1.22-1.37, average 1.30; alunite 1.26). It is therefore postulated that
mineralization at FSE-Lepanto occurred approximately 0.11-0.17 m.y. after the potassic and zoned high
sulfidation alteration, within which time the hydrothermal system had cooled significantly (as indicated by the
fluid inclusion data). The mineralizing waters are inferred to have migrated laterally along the Lepanto fault
within fractured and brecciated, pre-existing quartz-alunite alteration. Copper-gold mineralization formed as a
result of progressive mixing of the metal-bearing waters with cool and dilute ground waters. A deeper parent
melt to the known porphyry intrusions is speculated to represent a possible source of the late metal-bearing
fluids (Arribas et al., 1995).

Garcia (1991) concluded that some base metal-gold mineralization is related to neutralization of low pH
magmatic-derived waters during the last stages of activity.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

3. Mt Kasi, Fiji

The Mt. Kasi Prospect, Fiji (Fig. 1.2) is a poorly eroded, structurally controlled high sulfidation system in which
gold-copper mineralization formed at a high crustal level. The following discussion is taken from Corbett and
Taylor (1994) and Leach (unpubl. report 1994). Production began in 1996 to extract a resource comprising:
1,048,000 t of eluvial Au @ 1.9 g/t, and 1,240,000 t of hard rock @ 3 g/t Au (total of 180,000 oz Au). Workings
from 1932 to 1948 produced 261,000 t @ 7.5 g/t Au (63,000 oz Au).

Host rocks comprise Late Miocene lavas and pyroclastics which are intruded by dacite domes. An aeromagnetic
high in the vicinity of the Mt. Kasi Prospect, which may be indicative of a magnetite-bearing altered intrusion at
depth, appears to be offset with a sinistral displacement, by a NNW trending corridor of structures termed the
Mt. Kasi fault system (MKFS) (Fig. 6.26). The high contrast between the resistive silicification and the enclosing
conductive clay alteration has facilitated the subsurface mapping of the Mt. Kasi alteration system by CSAMT
(controlled source audiomagnetictelluric) geophysics (Corbett and Taylor, 1994).

Zoned alteration extends from localized steeply-dipping silicification, formed as interpreted fluid upflow features,
laterally into interpreted fluid outflows, which were identified in early drilling to be rootless. Upflows tend to be
localized at intersections of cross structures with the MKFS, and paleo-flow directions are apparent from the
shapes of upflow-outflow relationships (Figs. 6.26, 6.27). The cross faults may produce late- to post-mineral
offsets of the alteration in a configuration similar to domino structures (Fig. 3.9). The 1100 workings are
therefore inferred to occur within a fluid upflow feature which becomes an outflow at the open pit workings.
Another upflow zone is evident in the Done Creek area.

The overprinting of alteration by mineralization is apparent at Mt. Kasi. The individual fluid upflow-outflow
centres derived from an initial interpreted vapour-dominated fluid display alteration zonation grading outward
from: cores of residual (vughy) quartz grading outward to quartz-alunite, and kaolin alteration. Gold and copper
mineralization associated with the later, inferred liquid-dominated fluid, exploited the same plumbing system
during continued deformation on the MKFS. Ore forms the matrix to breccias within the competent residual
silica, and gold/copper grades are proportional to the matrix content of the breccias. Matrix supported rotational
breccias proximal to the fluid upflow zones contain higher gold grades than the peripheral fluidized and crackle
breccias in the outflow zones (Corbett and Taylor, 1994; Fig. 6.27). NW trending fractures, slickensided faults
and sigmoidal-shaped fluidized breccia zones occur as dilational ore-hosting features, indicative of a continued
sinistral movement along the MKFS during ore formation (Fig. 6.27; Corbett and Taylor, 1994).

Alteration at Done Creek grades outwards as concentric zones of: central residual (vughy) silica in which
cavities are filled by kaolinite + dickite, quartz-kaolinite-interlayered illite-smectite, and peripheral sub-propylitic
chlorite-carbonate. Local alunite fills leached vughs and has been replaced by later kaolinite.

Breccia-hosted gold mineralization consists of early pyrite-quartz and followed by later copper-gold. Ore was
deposited in open fractures and leached vughs adjacent to fractures and overgrows earlier quartz and barite.
Mineralization grades from luzonite-tennantite-chalcopyrite at depth to goldfieldite-tennantite at shallow levels
(and in eroded float boulders), and elsewhere at Mt. Kasi (Turner, 1986) laterally to chalcopyrite-tennantite-
galena-sphalerite in peripheral argillic zones. Bonanza grade gold mineralization (locally >1% Au) in float at
Done Creek occurs as high fineness (>900) native gold, which was deposited as inclusions in, and overgrowing
tennantite and goldfieldite, overgrowing pyrite, and filling vughs in earlier quartz-pyrite veins. Trace gold-
tellurides (mainly calaverite) occur as minute inclusions in goldfieldite and tennantite. Inclusions of copper-tin
sulfide minerals (colusite and hemusite), which contain appreciable vanadium and molybdenum contents
respectively, have been recognised in some high gold grade silicified float.
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 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

Mt. Kasi is a high sulfidation system which is exposed at very shallow, epithermal levels. Recent mining has
exposed features typical of hot spring deposits (G. Taylor, pers. commun.). This is consistent with the
dominance in the alteration and mineralization mineralogy of quartz-kaolinite-dickite and luzonite-tennantite-
goldfieldite respectively, and low homogenisation temperatures in barite within mineralized zones (averages of
165-220oC; T urner, 1986). The association of bonanza grade gold mineralization with tellurium (+ vanadium) in
this epithermal high sulfidation system is comparable to the bonanza grade deposits in low sulfidation, intrusion-
related, epithermal systems (e.g., Zone VII at Porgera, Papua New Guinea).

Paleo-fluid flow is apparent as the several centres of fluid upflow and outflow, which suggest that fluid has
flowed away from an inferred dilational jog in the Mt Kasi fault system at the central portion of the prospect (Fig.
6.26). Minor dacite in this area may be indicative of a magmatic source at depth for the high sulfidation alteration
and mineralization.

v) Composite Structurally and Lithologically Controlled Gold-Copper High Sulfidation Systems.

a) Characteristics

Most high sulfidation gold-copper systems display both lithological and structural control, and those classified
above as either lithologically or structurally controlled are in essence part of a continuum. These controls may
vary from one part of a system to another or with time. A diatreme margin could be classed as a permeable
lithological contact by some, or as a structural contact by other workers. Dilatant structures which tap the
magmatic source, typically control the fluid flow at depth. Upon contact with permeable host rocks, a lithological
control may become evident, particularly in the upper portions of many systems.

Examples of systems which display approximately equal structural and lithological control include: Maragorik,
East New Britain, Papua New Guinea (G. Corbett et al., 1991; Corbett and Hayward, 1994); Peak Hill, eastern
Australia (Degeling et al., 1995); Bawone-Binebase, Sangihe Is, Indonesia (Corbett unpubl. report, 1993).

b) Examples

1. Peak Hill, eastern Australia

Although occurring in a Late Ordovician magmatic arc of the Lachlan fold belt, eastern Australia (Walshe et al.,
1995), Peak Hill displays features typical of younger high sulfidation gold-copper systems, as summarised from
Degeling et al., (1995).

On a regional scale, the inferred magmatic source for the high sulfidation alteration and mineralization may have
been localized by the intersection of NW-trending transfer structures which offset the magmatic arc to form an
inferred graben, and the arc parallel Parkes thrust (Fig. 3.11). Host rocks comprise andesitic volcanic and
epiclastic rocks. An initial lithological control to the high sulfidation alteration is evidenced by the localisation of
silicification at the intersections of NW trending structures (parallel to the graben trend) and permeable host
rocks (e.g., Bobby Burns workings, Fig. 6.28). These structures also create post-mineral offsets of the alteration
(e.g., Crown workings, Fig. 6.28), and host possible earlier low sulfidation quartz veins. In addition, NW
structures localize fracture controlled mineralization which is best developed in portions of the NW structures
which deviate to WNW trends (e.g., Proprietary open pit, No. 2 and Mingelo stopes, Fig. 6.28). The model
presented by Degeling et al. (1995) suggests that regional sinistral movement on the NS-trending arc parallel
structures similar to the sinistral Gilmore suture (Section 3.v.b), has facilitated the formation of local dilational
ore-hosting WNW-trending flexures where the NW fractures transgress the competent silicification.
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 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

Four distinct stages of hydrothermal activity have been recognised at Peak Hill (Fig. 6.29):

Stage I: Massive white quartz veins host gold mineralization at Myall United or McPhails workings north of Peak
Hill, and at the Crown workings at Peak Hill, and are herein inferred to predate the high sulfidation
mineralization. These veins strike NW and exhibit locally higher gold grades in WNW-trending segments.

Stage II: This is the main high sulfidation alteration and mineralization which developed progressively as:

i) The initial lithologically controlled alteration exploits the permeable epiclastic units within the volcanic
sequence over a 500 x 1000 m area. At the Proprietary workings (Fig. 6.29), alteration comprises a central core
of residual (vughy) and massive quartz which is hosted in a steeply dipping fine grained pyroclastic and rimmed
by silica-alunite (Fig. 6.30). The silicified zones grade to silica-micaceous clay alteration which is broad on the
east and narrow to the west. The micaceous clays are interpreted to have been formed during post-high
sulfidation deformation, and grade from sericite at depth and in the south, to pyrophyllite at shallow levels and to
the north. Trace andalusite co-exists with pyrophyllite at Great Eastern. The less permeable andesitic volcanics
host alteration, which grades westward from the central silica-micaceous clay as zones of: silica-paragonite,
paragonite-chlorite, chlorite-albite and epidote-albite-chlorite (Fig. 6.30). The alteration zonation reflects the
progressive neutralization and cooling of a hot acidic fluid as it migrates away from permeable lithologies (Fig
6.3). The silicification is more extensive closer to the inferred NW feeder structures and dies out moving along
the strike of the permeable units (e.g., Parkers, Fig. 6.28).

ii) The zoned alteration, and especially the more brittle quartz and quartz-alunite zones, displays fracturing and
local brecciation, accompanied by deposition of quartz-barite + alunite. In drill hole OPH2, south Peak Hill (Fig.
6.28), silicified vughy volcanics are intensely fractured and brecciated, and sealed in a vein breccia of bladed
coarse tabular alunite. This type of alunite vein/breccia is common in high sulfidation systems proximal to source
intrusions (Section 4.ii).

iii) Further fracturing and brecciation was accompanied by sulfide deposition as early massive pyrite, followed by
later copper-gold ore minerals. Copper-gold mineralization at Proprietary is localized at the intersection of the
central residual silica zones and the NW trending feeder structures. Sub-economic copper mineralization at
Proprietary, and to a lesser degree at Parkers, is restricted to a zone of quartz-pyrite-barite alteration, and is
dominated by tennantite and minor luzonite (Fig. 6.28). Tennantite is locally enriched in Te, and trace minute
Au-tellurides (calaverite) have been reported as inclusions in some pyrite (Allibone, 1993). High fineness (943-
968) native gold occurs with tennantite filling fractures cutting pyrite. The occurrence of Te-rich mineralogy,
tennantite-luzonite copper mineralization, and free gold are indicative of formation at shallow epithermal levels in
a high sulfidation system. Chalcopyrite-enargite + bornite mineralization predominate at Bobby Burns, closer to
the inferred intrusion source (below).

Stage III: This is the main phase of post-alteration/mineralization deformation and shearing. The zonation in
micaceous clays outlined above is inferred to indicate lower pH conditions to the north during deformation.

Stage IV: The presence in open cavities and breccia zones, of late stage kaolinite and gypsum and fine grained
pseudo-cubic alunite at depth, implies that cool, acidic fluids collapsed onto the earlier alteration. In places the
pseudo-cubic alunite is slightly deformed, however in most cases it is undisturbed, indicating that most of the
Stage IV retrograde activity occurred after deformation/shearing.

Information from structure, alteration and mineralization suggest that hot acidic magmatic fluids may have been
derived from an intrusion source in the vicinity of a magnetic high about 1.5 km to the southeast of Peak Hill. It is
interpreted that volatile-rich magmatic fluids migrated along the NW transfer structures, resulting in the
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

formation of zoned alteration centred in permeable pyroclastic units. Later mineralized fluids moved
northwesterly along the same regional structures, and deposited gold-copper mineralization within dilational
WNW-EW trending fractures hosted in brittle silicified zones. Extensive shearing and deformation at Peak Hill
(Allibone, 1993; Allibone et al., 1995) is interpreted herein to predominantly post-date the development of the
high sulfidation system, and to have resulted in the recrystallization of much of the peripheral clay alteration into
sericite or pyrophyllite.

2. Maragorik, East New Britain, Papua New Guinea

The Maragorik Prospect, East New Britain, Papua New Guinea, is a poorly eroded high sulfidation gold-copper
system (Corbett et al., 1991; Corbett and Hayward, 1994). As extensive ash deposits blanket East New Britain,
CSAMT geophysics, in conjunction with bulldozer trenching, were used to delineate the subsurface geology.
This geophysical tool, which delineates alteration of differing resistivity (Fig. 6.33), is applicable to high level high
sulfidation systems characterized by sharp boundaries between silica and clay alteration (e.g., Mt Kasi, Fiji;
above).

As typical of southwest Pacific rim high sulfidation systems, alteration and mineralization at Maragorik are
inferred to have been derived from a two stage vapour- and liquid-dominated hydrothermal fluid (Section 6.i.c).
At deeper levels fluid upflow occurred along EW structures dilated by the rotation on the bounding major NW
linear structures (Figs. 6.31, 6.32). At higher levels, the rising hydrothermal fluids flowed laterally along
permeable horizons which intersect the upflow structures. Lapilli tuff units within a dominantly lava sequence
controlled the vapour-dominated fluid flow to form flatly dipping ledges of silicification and peripheral clay
alteration, while the feeder structures are evident as steeply dipping ledges (Fig. 6.33). Mineralization occurs as
the sulfide matrix to breccias within the earlier formed competent silicified flatly dipping ledges, best developed
proximal to the steeply dipping feeder structures. The rimming incompetent clay alteration did not fracture and
so is barren.

Alteration and mineralization, indicative of a very low temperature and hence high level system, are
characterized by opaline silica, smectite dominated clays (Figs. 6.32, 6.3), and luzonite as the low temperature
polymorph of enargite (Fig. 6.4). Although high sulfidation systems are inferred to develop from porphyry-related
magmatic fluids, such a source at Maragorik is interpreted to be very deeply buried.

3. Bawone-Binebase, Sangihe Island, Indonesia

At Bawone-Binebase on Sangihe Island, Indonesia, both structurally and lithologically controlled high sulfidation
gold-copper mineralization are interpreted to have been derived from the one fluid source (Fig. 6.34; G. Corbett,
unpubl. report, 1993). Low grade (propylitic/phyllic) porphyry-style alteration and mineralization occur at
Binebase and elsewhere on Sangihe Island. Low sulfidation mesothermal quartz-sulfide veins are the
interpreted hypogene source for supergene gold recovered by illegal miners at Taware Ridge, south Sangihe
Island. The inferred magmatic source for the Bawone-Binebase high sulfidation system, north Sangihe Island, is
localized on the margin of an inferred NNW trending graben by the intersection of thoroughgoing NNE
lineaments (Fig 6.34). Sinistral movement on the NNW graben-bounding structures has dilated ESE fractures
(Fig. 6.34) which are interpreted to tap the magmatic source and form a fluid upflow feature.

At Bawone, a fluid flow model can be deduced from the zoned alteration and gold-copper distribution in several
cross sections (Fig. 6.34). Hot magmatic fluids are inferred to have flowed upward in the vicinity of late stage
diatreme breccias, and then laterally along the dilatant structures towards the SE. The size of the alteration
zones, temperature of formation and metal grades all decline moving from the upflow to outflow settings. The
zonations and paragenetic sequences of overprinting alteration and mineralization are typical of high sulfidation
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

systems. The local sharp contacts between; residual (vughy) silica, silica-alunite and peripheral clay alteration,
indicate formation at a high crustal level or distal to the inferred magmatic source, and are typical of an outflow
portion of the hydrothermal system. Mineralization occurs as filling of vughs in the residual silica as sulfide
matrix to the brecciated competent residual silica and silica-alunite alteration.

While the bulk of the hydrothermal fluids flowed to the SE along the dilatant structures, relatively small
structurally controlled high sulfidation mineralization occurs to the SW at Brown Sugar and Bonzo's Salvation.
Here, observed rapid changes in alteration zonation are consistent with fluid quenching. This, and the presence
of low temperature alteration minerals, reflect a distal setting to the inferred fluid upflow in the vicinity of the
diatreme breccia (Fig. 6.34).

At Binebase, alteration and mineralization are interpreted to have been derived from fluids which flowed
northward along the throughgoing NNE and then NNW structures and then intersected a permeable lapilli tuff
unit (Fig. 6.34). Low temperature alteration assemblages are consistent with the distal relationship to the inferred
fluid source at Bawone. Chalcedonic quartz becomes increasingly vughy down dip and to the south towards the
inferred upflow. As seen in some other lithologically controlled high sulfidation systems (e.g., Wafi, Papua New
Guinea), there is little distinction between alteration and mineralization resulting from the early
vapour-dominated fluid phase, and the later liquid-dominated mineralized fluid. The abundant gypsum and barite
suggest that incursion of sea water could have occurred, possibly from the NW.

iv) Hybrid High-Low Sulfidation Systems

a) Introduction

Giggenbach (pers. commun., in Hedenquist, 1987) states that "ascent of volcanic (magmatic) gases and their
transition from an oxidized (sulfur as SO 2 - high sulfidation) to reduced (sulfur as H 2S - low sulfidation) state is 'a
battle of the buffers' (i.e., between the fluid and wall rock), in which each achieves a partial victory". Hedenquist
(1987) postulated that there is a continuum from high to low sulfidation systems, and this is dependent on the
degree of access of these upwelling fluids to neutralization (and cooling) through reaction with the wall rock
and/or circulating surficial waters.

All high sulfidation systems exhibit zoned alteration, which indicates that this process of cooling and
neutralization occurs within subsidiary structures or permeable lithologies. In this environment the magmatic-
derived fluids can be modified away from the major fluid feeder structures. However, in certain cases, the
upwelling hot acidic, magmatic-derived high sulfidation fluids become cooled and neutralized while remaining
within the major feeder structures. This results in a transition from high to low sulfidation type fluids, and the
formation of a hybrid style of gold deposit (e.g., Wild Dog, Papua New Guinea). Elsewhere, the initial
hydrothermal fluid may be dominantly high sulfidation, but later fluids of a low sulfidation nature (e.g., Lepanto;
Garcia, 1991: El Indio, Chile; Jannas et al., 1990). This may result from: extensive mixing of the magmatic
hydrothermal fluid with circulating meteoric water to form a more reduced and/or neutralised liquid, or changes in
the chemistry of the volatiles and liquids, which exsolve from the magmatic source during late stage of melt
crystallization.

b) Examples

The Wild Dog Prospect, Papua New Guinea (Lindley, 1987, 1988, 1990) displays characteristics of both high
and low sulfidation gold systems, and Arribas (1995) notes that Masupa Ria, Indonesia (Thompson et al., 1994)
and the Kelly Mine, Philippines (Comosti et al., 1990) are examples of overprinting hydrothermal systems.
Superimposed high and low sulfidation alteration and mineralization are apparent as the base metal-gold veins
which are reported to cut the high sulfidation system at Lepanto, Philippines (Garcia, 1991). High sulfidation
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

alteration and mineralization on Wetar Island, Indonesia, described below as an exhalative style of system, also
displays an inferred evolution from a high to low sulfidation system.

1. Wild Dog, East New Britain, Papua New Guinea

The Wild Dog Prospect in northern New Britain was discovered in 1983 during a regional stream sediment
exploration programme which investigated the earlier identification of altered float and pannable gold (Lindley,
1987). Evaluation of the project by Esso (Papua New Guinea), City Resources and Highlands Gold Limited
continued until the early 1990's. Host rocks comprise andesitic to dacitic lavas and tuffs to which Lindley (1987,
1988) attributes a probable Mio-Pliocene age. Recent ash partly blankets the area.

Wild Dog is one of several alteration systems hosted within the Warangoi structural corridor, which cuts an
inferred Nengmutka caldera (Lindley, 1987, 1990). The caldera is localized within the Baining Mountain graben
structures which, based on data showing the depth to the mantle (Wiebenga, 1973), may represent the margin
of a deep rift (Fig. 6.35; G. Corbett, unpubl. report, 1990). At the prospect scale, three NNE trending and west
dipping silicified zones occur within the Warangoi structural corridor as a prominent ridge (Lindley, 1986). NW
trending cross structures apparent on outcrop scale, are exploited by the drainage pattern, and locally offset the
silicified zones, as slickensided faults, and localize gold mineralization (G. Corbett, unpubl. report, 1990; Fig.
6,36).

Two main hydrothermal events are recognised as (Fig. 6.37):

i) Replacement silicification of regionally propylitic (epidote-pyrite-chlorite) volcanics produced a dense, grey,

fine grained chert-like alteration (Lindley, 1990). These steeply dipping silicified zones are unmineralized, pinch
and swell up to true widths of 50-70 m, and are aligned NNE parallel to the Warangoi structural corridor and
assumed to be structurally controlled. Alteration mineralogy in the silicified zones and the immediate wall rock is
vertically zoned from deeper to shallower levels as: sericite + pyrophyllite, through sericite, to local sericite +
chlorite (T. Leach, unpubl. report, 1990). Trace molybdenite mineralization is associated with the silicification.

Similar structurally controlled silicification occurs locally along the Warangoi structure at Keamgi Hill, 2 km SSW
of Wild Dog, and Kasie Ridge, 4 km to the NNE (Fig. 6.35). At Kasie Ridge, 300 m lower in elevation than Wild
Dog, sub-parallel NNE trending silicified ridges are zoned outwards as zones of: central quartz-alunite + zunyite
+ pyrophyllite + diaspore, through pyrophyllite-sericite + kaolinite/dickite and sericite + illitic/kaolin clay, to
peripheral chlorite-illitic clay, and regional propylitic alteration (T. Leach, unpubl. report, 1990). This zonation is
comparable to high sulfidation systems encountered elsewhere in the southwest Pacific.

ii) At Wild Dog polyphasal steeply dipping quartz tension veins cross cut the more moderately dipping NW
trending silicified zones, commonly as hanging wall splits, and are best developed near the cross structures
(Lindley, 1990; G. Corbett unpubl. report, 1990). Later mineralization fills open fractures and cavities in the
quartz veins as dark sulfide stringers comprising copper minerals (chalcopyrite and minor bornite, chalcocite and
tennantite), with local occurrences of a wide variety of Cu-Bi-Pb-Ag sulfide, telluride and sellenide minerals
(Lindley, 1990). Gold is generally restricted to Au-Ag telluride minerals (Lindley, 1990), and native 'mustard' gold
occurs as an alteration (weathering) product of these tellurides. (Also see Bilimoia low sulfidation mineralization,
Section 7.ii.d)

Zonations in illite and smectite clays and fluid inclusion data for the late quartz veins are interpreted to indicate
that copper-gold mineralization took place in response to the mixing of cool (<200oC) and dilute (<2.0 wt %
NaCl) meteoric waters, with upwelling hot (>280oC) and saline (>15 wt % NaCl) fluids (T. Leach, unpubl. report,
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 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

1990).

It is interpreted herein, that the prospects in the Wild Dog region formed as composite high- and low-sulfidation
systems. Initial silicification was caused by hot acidic fluids which exsolved from a crystallising high level
intrusion into the Warangoi structural corridor (Fig. 6.35). These acidic fluids progressively became neutralized
at shallower levels as indicated by the zonation from alunite-zunyite-pyrophyllite at Kasie Ridge, through
pyrophyllite and sericite, to near surface sericite-chlorite at Wild Dog and Keamgi Hill (Fig. 6.37). This is
comparable to the initial stage of vapour-rich leaching in high sulfidation systems. Later gold mineralization is
related to fracturing of the silicified zones and inferred contemporaneous release of magmatic-derived,
mineralized fluids from depth (e.g., the parent melt). These fluids mixed with cool dilute meteoric waters within
tension veins, and resulted in the Cu-Bi-Pb-Te-Au mineral deposition, typical of low sulfidation quartz-sulfide
lodes (Section 7.ii).

2. Masupa Ria, Central Kalimantan, Indonesia

Overprinting low and high sulfidation systems at Masupa Ria have been described by Thompson et al., (1994)
and T. Leach (unpubl. reports, 1987-1989). Flat lying ridges of zoned quartz and advanced argillic alteration at
Masupa Ria are localized at the intersection of NW transfer structures and NE structures which form part of the
magmatic arc (Figs. 3.12, 6.38). These ridges comprise massive to vughy quartz which passes with increasing
depth to alteration categorized as: pyrophyllite-kaolinite-dickite, quartz-sericite, and regional epidote-chlorite-
calcite (propylitic). This alteration is hosted in flat lying pyroclastic units which are interpreted to have acted as
permeable host rocks for outflowing high sulfidation-style acidic fluids.

Although barren of mineralization, the silica-alunite ridges have fractured as brittle host rocks to later low
sulfidation style vein mineralization. The Ongkang vein system trends parallel to northwest transfer structures,
and swells at the intersection with Masupa Ria silica ridge. Veins comprise colloform banded quartz (local quartz
pseudomorphing bladed carbonate), typical of intrusion-related low sulfidation gold-silver quartz vein systems
formed at epithermal levels (Section 8.v). Fluid inclusion analyses indicate that coarse quartz was deposited at
250-300oC from dilute (<3 wt % NaCl) fluids. Mineralization is restricted to thin sulfide bands composed of fine
quartz, low temperature illite and chlorite, rare base metal sulfides and trace silver sulfosalts and sulfides. Gold
occurs as minute free grains in the sulfide bands and in fractures cutting the banded quartz, and has an average
fineness of around 820. Fractures and cavities are filled by barite, gypsum, kaolinite and smectite clays. Gold
mineralization is interpreted to have developed in response to the mixing of hot mineralized liquids with cool
meteoric waters.

It is not clear whether the silica ridges formed by high sulfidation fluids, and the auriferous quartz veins
deposited by low sulfidation fluids, are different phases of the same magmatic-related hydrothermal system, or
completely separate overprinting hydrothermal systems.

vi) High Sulfidation Exhalative Systems

a) Characteristics

The high sulfidation systems outlined above are interpreted to have formed in a subaerial environment by the
modification of hot acidic fluids produced from the absorption of magmatic-derived volatiles and brines into
circulating meteoric waters. However, there are a number of high sulfidation systems formed in a submarine
environment, where magmatic-derived fluids are interpreted to condense into circulating seawater (Sillitoe et al.,
1996). These are classified as high sulfidation deposits in a volcanogenic massive sulfide (VMS) environment
(Sillitoe et al., 1996). These authors have characterized the high sulfidation VMS deposits as:
i) related to submarine intermediate to felsic intrusions,
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

ii) associated with advanced argillic alteration and capped by barite-rich zones,
iii) containing copper and/or gold mineralization within pyrite-rich zones and associated with several of: bornite,
enargite, luzonite, tennantite, covellite as well as low Fe-sphalerite, orpiment and realgar.

Sillitoe et al. (1996) postulate that the copper-gold high sulfidation exhalative deposits are formed proximal to
the intrusion source of the magmatic fluids, whereas the more classical Zn-Pb-Cu VMS deposits are equivalent
to low sulfidation systems and develop more distal settings.

b) Active Analogue

An active analogue of high sulfidation exhalative systems in the southwest Pacific occurs in a back arc
environment along the Valu Fa Ridge, southern Lau Basin, Fiji (Fig. 1.2; Herzig et al., 1993). Low temperature
and inactive vents at 1,850-1,900 m depth in the Hine Hina region of the Lau Basin contain gold-rich
barite-silica-sulfide precipitates which are hosted in andesite domes (Herzig et al., 1993). These authors
describe the precipitates as being associated with advanced argillic alteration characterized by:
pyrite-cristobalite-barite, alunite, pyrophyllite, native sulfur and opal C-T advanced argillic alteration.

c) Example

1. Wetar Island, Indonesia

A number of small, silver-rich copper-gold high sulfidation deposits on Wetar Island, east Indonesia have been
described in detail by Sewell and Wheatley (1994), from which the following discussion is taken. These authors
interpret the deposits to have formed in a submarine environment at depths of 600 m, and have been interpreted
(Sillitoe et al., 1996) to represent high sulfidation VMS systems. The deposits currently occur at >400 m above
sea level, which is indicative of some 1000 m of recent uplift.

Alteration and mineralization at the Lerokis and Kali Kuning deposits on Wetar Island are hosted in a sequence
of subvolcanic dacite intrusions, which are overlain by submarine basaltic andesite pillow lavas and volcanics
grading upwards into more felsic lavas, tuffs, breccias and domes. The sequence is capped by sedimentary
rocks and epiclastic mudflows. The dacites have undergone silicification to quartz, opaline silica, cristobalite or
tridymite. Variable kaolinite, smectite, interlayered illite-smectite, illite and zeolite and chlorite alteration occur
around a central core of silicification. Alunite reported by Sewell and Wheatley (1994), has not been
substantiated by later detailed petrology (G. Hedenquist, pers. commun., 1995).

The silicified dacites display pervasive quartz-pyrite stockwork veins and breccia fill, which grades upwards into
a thick (up to >50 m) zone of massive pyrite + barite + diaspore. Brecciation of the massive sulfide is
accompanied by deposition of barite-silica-colloform banded pyrite-marcasite with minor disseminated copper
mineralization which exhibits a depositional sequence of chalcopyrite --> chalcocite --> covellite-digeneite-
enargite-tennantite. Massive pods of barite sand overlie the pyrite zones and are contiguous with the barite-
silica breccia. Barite is cemented by iron oxides, opaline silica, minor carbonate and trace anhydrite. Native gold
occurs as inclusions in barite, whereas electrum is intergrown with the iron oxides. High levels of mercury
(average of 18 ppm) and lead (locally >1 %) are also recorded.

The sequence of early development of silicification and argillic alteration, followed by pyrite and then
gold-copper mineralization associated with barite deposition, is common in the southwest Pacific high sulfidation
systems described above. However, the Wetar deposits are unusually silver-rich for southwest Pacific rim high
sulfidation systems (Au:Ag approx. 0.03-0.04), where the silver is associated with tetrahedrite and other
sulfosalts. The paucity of extensive advanced argillic alteration is herein interpreted to suggest that these
 Short course manual: Southwest Pacific rim gold-copper systems: Structure, alteration and mineralization, G Corbett & T Leach, 5/97 Edn.

deposits may be transitional to low sulfidation style hydrothermal systems, in which magmatic-derived volatiles
condensed into circulating sea water to form only moderately low pH waters. T hese waters are speculated to
have produced zoned silicification and argillic alteration in the felsic volcanics. Mineralization is postulated to be
related to a subsequent influx of magmatic-derived, metal-bearing fluids which ascended along fractured
silicified volcanics and mixed with sea water in a sub-sea floor environment.