Located in the northeast of the State of Zacatecas in north-central Mexico, near the town of Mazapil, Peñasquito is convenient to road transportation and power. This is a historic mining region, and skilled labour and smelters are readily available.
The property lies within the eastern Mexican fold-belt comprised of folded Mesozoic clastic and carbonate sedimentary units. The world-class Au-Ag-Zn-Pb deposit is centered on two funnel-shaped diatreme breccia pipes, cutting Cretaceous clastic units above a Tertiary felsic intrusive complex. Disseminated and lesser fracture-controlled electrum, sphalerite, galena, and various silver sulfosalts are hosted by milled-clast breccias within the diatremes, and by calcareous siltstone and sandstone in the surrounding mineralized halo. Both breccia pipes sit within a hydrothermal alteration shell, consisting of a central sericite-pyrite-quartz-calcite alteration assemblage and a peripheral pyrite-carbonate alteration halo. Au-Ag-Zn-Pb sulfide replacements (mantos) occur in the underlying limestone units, beneath the planned open pits and above the source of cross-cutting porphyry dikes.