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The Marlin district is located 15-20 kilometres south of the Cuilco-Chixoy-Polichic Fault, a major sinistal transform fault that separates the North American and Central American cratons. Tertiary movement is documented to be over 150 kilometres. The Marlin deposit is on a projection of a southern splay off of the Plochic fault system. The northern side of the Polochic fault system contains Mesozoic sediments. The south side of the Polochic fault contains Paleozoic schist, gneiss and granite and a series of Tertiary mafic volcanic eruptive events composed mostly of dacitic to andesitic tuff, lahar and andesitic to basaltic flows. The Marlin deposit is located within the Tertiary mafic eruptive unit. The deposit trends in the same direction as the Polochic fault system.
There are four major lithologic units present at the Marlin site: pyroclastic deposits, marlin andesites, tertiary volcaniclastic sequence and porphyric dykes.
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