The project area lies within the Vardar Zoneof Neogene carbonate-replacement and epithermal Pb-Zn-Ag and porphyry Cu mineralization. The Ag-Pb-Zn mineralization occurs within the Šumadija metallogenic district, and bears many similarities with the mineralization in the famous Kopaonik district (Trepca mines).
The Parlozi mineralization is hosted in shallowly dipping Upper Cretaceous siltstones, marls and limestones, intruded by Neogene rhyolitic to quartz latite dykes and sills up to 5 metres wide. Alteration comprises chlorite-epidote alteration of marl and limestone units distal to intrusive rocks silica flooding of siltstone proximal to intrusive rocks, and silica flooding of intrusive rocks with moderate, fine-grained, disseminated pyrite and arsenopyrite is observed.
The mineralization occurs as veins and stratabound replacement of the Cretaceous carbonates and is spatially associated with intrusive Neogene quartz-latite dykes and dacitic volcanic breccias, which are intensely argillised and pyritized near the mineralization. The mineralization proximal to the breccias is enriched in gold, and marked by arsenopyrite and intense silicification of the host marls and limestones. Lead and zinc sulphides together with pyrite occur distally from the intrusive contact, but are also associated with intense silicification of the host carbonates. The ore mineralogy includes argentiferous galena, sphalerite and pyrite with accessory chalcopyrite, arsenopyrite, tetrahedrite, marcasite and gold.
Historical drilling indicates that the Parlozi mineralization forms a zone which strikes north over >300 metres and occurs between 200 and 500 meters below surface. Mineralization comprises more than five individual, moderately to steeply west-dipping, sub-parallel massive sulphide zones. Individual sulphide zones are between 50 centimeters and 2 meters thick, displaying a tabular, locally discontinuous morphology.
Observations from drill core indicate that the sulphide zones occur as both strata-bound-mantos and as discordant, massive sulphide filling sub-vertical fault zones. Mantos are recognized by disseminated and blebby sulphide replacing limestone, marl and volcaniclastic units. Mineralized fault zones are recognised in drill core by strong fracturing of the host rock adjacent to massive sulphide, with weak disseminated sulphide and chlorite-epidote alteration of the wall rock. Massive sulphide hosted in fault zones is commonly fractured and crosscut by chlorite veinlets and later quartz-carbonate veinlets.
Some of the better intersections reported from the historical drilling included BK-14: 15.1 m @ 8.96% Pb, 1.2% Zn and 317 g/t Ag and 17.1 m @ 8.68 % Pb, 0.96% Zn and 250 g/t Ag.
Close to Parlozi, there are is an historical adit and shaft near Plandiste that were used to explore and exploit the mineralization beneath an area marked on the surface by intense ancient mining activity (pits and trenches).
This type of mineralization has long supported zinc-lead-silver mining operations at Trepca and other mines in Serbia and the western Balkan countries. However, the lead-zinc sulphide replacement mineralization at Parlozi is markedly enriched in silver (see table and images), which occurs at concentrations otherwise seen in the famous manto or carbonate-replacement-deposit (CRD) deposits in Mexico and Peru.
In addition to the Parlozi target, there are additional known mineralized occurrences at Ljuta Strana, Stenicka – Svinjcine, Gomilice, Grivacevac - Celevac, Kriva Zlatara and Glavcine. Systematic work was only undertaken at Parlozi.