The Cerro Quema district, located on the Azuero Peninsula, Panama, is part of a large regional hydrothermal systemcontrolled by regional faults striking broadly E-W, developed within the Río Quema Formation. This formationis composed of volcanic, sedimentary and volcano-sedimentary rocks indicating a submarine depositionalenvironment, corresponding to the fore-arc basin of a CretaceousPaleogene volcanic arc. The structures observedin the area and their tectono-stratigraphic relationship with the surrounding formations suggest a compressiveand/or transpressive tectonic regime, at least during Late CretaceousOligocene times. The igneous rocks ofthe Río Quema Formation plot within the calc-alkaline field with trace and rare earth element (REE) patterns ofvolcanic arc affinity. This... volcanic arc developed on the Caribbean large igneous province during subductionof the Farallon Plate. Mineralization consists of disseminations of pyrite and enargite as well as a stockwork ofpyrite and barite with minor sphalerite, galena and chalcopyrite, hosted by a subaqueous dacitic lava dome of theRío Quema Formation. Gold is present as submicroscopic grains and associated with pyrite as invisible gold. Ahydrothermal alteration pattern with a core of advanced argillic alteration (vuggy silica with alunite, dickite, pyriteand enargite) and an outer zone of argillic alteration (kaolinite, smectite and illite) has been observed. Supergeneoxidation overprinted the hydrothermal alteration resulting in a thick cap of residual silica and iron oxides. The oreminerals, the alteration pattern and the tectono-volcanic environment of Cerro Quema are consistent with a highsulfidation epithermal system developed in the Azuero peninsula during pre-Oligocene times.