The Chenier 2 claim is located between Little Goat Creek and Kelly River, approximately 30 kilometres north of the town of Rock Creek. In 2005 the claims were optioned by Kootenay Gold Inc., from local prospector Tom Kennedy. Over the next two years a program of sampling, geological mapping and a helicopter-borne geophysical survey were performed on the property.

Regionally, the Chenier area is underlain mainly by the Cretaceous Okanagan batholith, comprising medium- to coarse-grained granite and granodiorite. It forms a large part of the Lower Plate of the Okanagan Fault, extending eastward to the Grandby extensional fault at Grand Forks. The batholith cuts Middle Jurassic Nelson plutonic rocks and the Late Paleozoic Anarchist and Knob Hill Groups. These comprise basalt, argillite, chert and serpentinites and are interpreted to be remnants of an imbricated Devonian (?)-Carboniferous to Permian ophiolite complex.

Locally, the area is underlain mainly by massive to locally porphyritic granite and granodiorite of the Okanagan batholith. These granitic rocks intrude metasedimentary rocks that are exposed in the southern part of the area. A sequence of mafic to felsic tuffaceous rocks of probable Eocene age unconformably overlies both granites and the meta-sedimentary succession. Northeast-trending dikes cut all units. Several late north- and east-trending faults offset all units, including the Eocene dike swarm.

Two types and a number of zones of mineralization occur locally:

1.)

Two zones of hematite and lesser magnetite alteration, the West and East zones, occur within broken and fractured Okanagan batholith rocks in the north and northeastern part of the property. Their surface extent has not been mapped out, but they both appear to cover areas greater than 500 by 200 to 300 metres. Associated copper mineralization occurs as mainly chalcopyrite in hematite veins and with quartz veins in K-feldspar altered granite. Both hematite veins and chalcopyrite mineralization locally cut north-trending hornblende porphyry dikes; therefore, the age of mineralization is inferred to be Eocene. A mineralized chalcopyrite-hematite breccia sample from the West zone, assayed 0.17 per cent copper, and several samples from the East zone contained up to 0.23 per cent copper with an average grade of 0.16 per cent copper (Asssessment Report 28960).

2.)

Garnet-diopside skarn mineralization occurs in several localities within calcareous Paleozoic metasediments, mainly south of the East fault but also in scattered localities to the north and east. Skarns contain variable but generally minor amounts of pyrite and/or pyrrhotite. Samples from a skarn, south of the East fault, contained anomalous metal values, with up to 101 parts per million copper, 170 parts per million zinc and 98 parts per billion gold. A skarn sampled farther to the east, containing visible galena and sphalerite, assayed 0.27 per cent lead and 0.3 per cent zinc (Assessment Report 28960).