The Chenier 3 and 7 claims are 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. North east- trending dikes cut all units. Several late north- and east- trending faults offset all units, including the Eocene dike swarm.

Mineralization consists of quartz veins containing pyrite with associated gold values in an Okanagan granite. It is associated with steeply dipping, west- to northwest- trending shears. As well, gold here also appears to be spatially associated with a fine-grained, white aplitic phase of the Okanagan granite. Exposures in this area are cut by north- trending Eocene syenitic dikes. During 2007, samples taken in this area were anomalous with gold content ranging from 25 to 15,900 parts per million. One sample contained visible galena (Assessment Report 28960).