The Federal prospect is located approximately 300 metres southwest of the Susie occurrence (082ESW090), 750 metres east of Burnell Lake and 4.75 kilometres northwest of Oliver, British Columbia.

Little is known about the early history of the Federal prospect. However in 1916, the Federal (Lot 2030s) and adjacent Banker (Lot 2031s) were Crown granted to H.A. Guess. By 1922, the property was owned by Federal Mining Co. The Federal prospect was now part of the Susie claim group, consisting of the Susie, Banker, Federal and Agricola claims. A 61-metre tunnel was developed on the Federal claim. A 4.57-metre wide quartz vein was intersected. The vein strikes north. The vein was also traced on surface by several opencuts, surface stripping and diamond-drill holes. In 1934, the Susie claim group had expanded and consisted of the Susie, Oakville (Lot 2029s), Federal (Lot 2030s), Banker(Lot 2031s), Agricola (Lot 2027s), Grey Gables (Lot 2026s) and Tres Hermanos (Lot 2028s) Crown granted claims. The following year, ownership was changed to the Federal Mining and Smelting Co. Various lessees have worked this property between 1960 and 1976. This area was likely covered by the Conway claims in 1963. At this time, G.R. McKay shipped 65 tonnes, yielding 311 grams of gold, 2239 grams of silver, 130 kilograms of lead and 65 kilograms of zinc. In 1987, Highland Valley Resources Ltd. conducted an extensive exploration program on the Susie and Stemwinder (082ESW007) properties. Work on the Susie property was limited to detailed rock sampling of favourable quartz vein sections on all three underground levels and quartz vein outcrops near the decline portal.

Regionally, the area is principally underlain by medium grained intrusive rocks that form the Jurassic Oliver plutonic complex. To the south, the complex cuts Carboniferous to Permian Kobau Group metasedimentary rocks. On its northern margin, the intrusive mass is in contact with Eocene volcanics and sediments of Penticton Group.

In the Federal (Lot 2030s) claim area the Oliver plutonic complex is composed almost entirely of quartz monzonite. Three distinct phases are evident. A central core of massive, medium-grained garnet- muscovite quartz monzonite is surrounded by hornblende- bearing porphyritic quartz monzonite north of the core and biotite- bearing to the south. The third phase is a hornblende-biotite quartz monzonite located to the south of the other two units. Minor hornblende diorite also occurs in the area.

The Federal prospect is hosted by the hornblende-bearing porphyritic quartz monzonite northern phase of the Oliver plutonic complex. Nearby, a swarm of fine to medium grained quartz monzonite dikes cut this unit. The area has been extensively faulted and fractured. Regional hydrothermal alteration has resulted in epidote which occurs in seams up to 2.5 centimetres in width.

A north-striking vein, up to 4.5 metres wide, is characterized by an abundance of quartz almost to the exclusion of other minerals. The quartz has been subjected to varying amounts of post-mineralization fracturing, commonly to the extent that original textures are in large part destroyed. Where relatively undeformed the quartz occurs as large crystals generally 2.5 centimetres or more in cross-section and several centimetres in length. In places the crystals show a rough cockscomb texture. Some early grey quartz is evident although the bulk of the quartz is generally white. Wallrock alteration is not pronounced but a thin zone of sericitization occurs along vein margins. Pyrite mineralization is common along with varying amounts of galena, sphalerite and chalcopyrite which carry gold and silver values.