Precious metal deposits containing fine-grained disseminated or dispersed gold-silver form by reactions between metal-bearing hydrothermal fluids and sedimentary host rocks. Host rock permeability and chemical composition exert a primary influence on the fluid movement necessary for any primary dispersion halos to form around ore bodies, and determine whether a disseminated style orebody itself will even form. Where the mineralized rocks are relatively unfractured the margins of the orebodies exhibit abrupt decreases in gold content, and strong corresponding decreases in the contents of other metals. Primary dispersion patterns of this type are difficult to recognize and commonly are only a few meters (or less) in width. If the host rocks were well shattered and broken before mineralization, remnant amounts of the hydrothermal fluids may be dissipated in fractures lateral to or above the ore zones. This causes geochemical anomalies to form with clays and silt- size silica within the fractures over distances of up to at least 30-50 meters away from the main orebodies. The tendency for large primary dispersion halos not to form around these deposits explains the disappointing results from so many drilling programs where no multi-gram gold-grade material was even found: if large areas and apparent large volumes of rock contain one gram or less gold that likely is the "orebody" and not a halo effect around high grade mineralization.