The demarcation between the felsic- and intermediate-dominant volcanic units is
defined by a strong north–south-trending lineament. The lineament is believed to
represent a deep-seated fault structure (Kaiemraveem fault) based on bouguer gravity
and lithology contrasts across the lineament (Nutevgi et. al. 2004). The lineament
strikes immediately to the west of the Kupol deposit. Russian interpretation suggests
that the Kaiemraveem fault intersects a volcanic subsidence ring structure (Kovalevsky
caldera) within the Kupol deposit area. The Kaiemraveem structure terminates 25 km
to the north of the Project at the Maly Anui River fault and 22 km to the south of the
Project at the Mechkereva River ‘caldera’. The Maly Anui River fault is interpreted as
an east-west trending strike-slip structure.