The alumina bearing nickeliferous iron laterites on Pujada Peninsula have resulted from the weathering of a saxonitic peridotite. Preliminary exploratory hand auger drilling and test pitting or the northern one-third of the laterized terrain have yielded samples which indicate that the average nickel content is comparable to that of the Surigao ore, but its iron content is lower by a few percent. However, this is compensated by higher alumina concentrated in the upper portion of the laterite mantle.

Initial geologic mapping and laboratory study of the physical and chemical characteristics of meter samples from selected auger holes and tested pits showed that the high-level laterites (above 500 meter altitude) possesses characteristics distinct from those found at lower levels. The former are thicker and of lighter color compared to the low-level deposits. They also carry relatively more iron, nickel, chrome, and less silica and alumina compared to the
latter deposits.

Systematic auger drilling and sampling of the alumina enriched crust subsequently conducted on a 200-meter grid system, permitted closer study of the distribution of the iron, alumina, and silica within two explored areas in relation to ore thickness and topography. These variations are adequately expressed in contour diagrams.