The El Morro district is located within a 16 km wide north-trending graben structure that was uplifted by major reverse faults. The western graben-fault could correspond to the south extension of the Domeyko fault system, the main controlling feature for the northern Chile copper porphyry belt, represented by the Collahuasi, Quebrada Blanca, El Abra, Chuquicamata, La Escondida, El Salvador and Potrerillo mines. The El Morro and La Fortuna copper-gold-molybdenum mineralization may represent the southernmost extension of the classic Chilean Oligocene porphyry copper belt, more than 300 kmsouth of the Potrerillos district.

The basement rocks within the graben are Permo-Triassic volcanics that locally form roof pendants within Paleozoic granitoids that have intruded the volcanic series. The regional north-trending faults are crosscut by more local northwest-trending faults that are outlined by porphyritic dikes and the general fracture and veinlet pattern.

The La Fortuna area has given the best results to date on the property. La Fortuna is a classic copper-gold porphyry-type deposit, the first one of this nature found in the Eocene-Oligocene Porphyry Copper Belt of northern Chile. Copper-gold mineralization is related to intrusions of granodioritic to dioritic composition, emplaced in a sequence of andesitic conglomerates, felsic tuffs and epiclastic sediments. Mineralization consists of primary and secondary copper sulfides with associated gold. The sulfides occur in both stockwork veins and as fine disseminations, hosted mainly within the porphyry intrusives, and to a lesser extent within hydrothermal breccias and the surrounding country rocks.

At El Morro, mineralization is hosted by a sequence of epiclastic sandstones and conglomerates, occurring as primary and secondary copper sulfides plus associated gold in stockwork veins and disseminations. An intrusive source to the mineralization at El Morro has so far not been identified.