Geothermal exploration and development has been under way on Sao Miguel Island, Azores since 1975. This work had been restricted to the Fogo volcano, one of three dormant silicic volcanic centers on the island. The USGS in 1982 and 1983 conducted reconnaissance natural-source audio-magnetotelluric (AMT) surveys of all three silicic centers to evaluate the potential for geothermal systems at each and to demonstrate the utility of the method in areas of difficult terrain. Results on Fogo showed a low resistivity trend extending from the present production area upslope to the caldera boundary. The upper part of this trend is the upwelling zone of a thermal plume which supplies the production area. Further exploration and drilling are now planned for this area.