The Maragorik Prospect represents a partially eroded Pliocene acid sulphate style epithermal gold system hosted within the Sigule Volcanics and Riet Bed sediments which is inferred to have formed from a degassing porphyry body at depth. A regional sinistral rotation provided by transform faults associated with the opening of the Manus Basin imparts a dilational character to mineralised NE trending faults formed parallel to the Warangoi Graben. A controlled-source audio magneto-tellurics (CSAMT) survey has identified E-W trending buried conductors which may represent alteration formed within dilation zones._x000D_
While some gold mineralisation occurs within vuggy silica at Palang Hill, the target is auriferous enargite (luzonite)-bearing breccias from the LK1 and Gureki areas.