The SR 1-2 claims are located between Gladstone and Sunshine Creeks, approximately 1.3 kilometres east of Lower Arrow Lake. In 2003, the property was explored by prospector T. Kennedy and later acquired by Kootenay Gold Inc.

Regionally, the area is underlain by Paleozoic metasedimentary and metavolcanic rocks that are intruded by granites and granodiorite that are tentatively assigned to the Middle Jurassic Nelson plutonic suite, and by syenites and monzonites of the Eocene Coryell intrusive suite.

Locally, epithermal vein systems occupy areas of argillic alteration within a zone of intense north-south diking. The dikes range from lamproids through porphyritic syenites and are believed to be Eocene in age. These dikes cut older granite bodies interpreted to be Cretaceous or Jurassic.

In 2003, rock samples from banded epithermal quartz veins returned values up to 2972.4 parts per billion gold and two other samples returned greater than 1000 parts per million gold (Assessment Report 27545).

In 2005, a 0.75 metre rock chip sample, from a hand trench, returned 894.8 parts per billion gold (Assessment Report 27945).