The Sapphire occurrence is situated on the northwest face of Mount Payne at 1980 metres elevation above sea level, in the Slocan Mining Division. The property includes underground workings on the Sapphire, Minneapolis and Gem Crown grants (Lots 1857, 578 and 1858, respectively).

Regionally, the area lies on the western margin of the Kootenay Arc, in allochthonous rocks of the Quesnel Terrane. In the vicinity of the occurrence, the Quesnel Terrane is dominated by the Upper Triassic Slocan Group, a thick sequence of deformed and metamorphosed shale, argillite, siltstone, quartzite and minor limestone. Rocks of the Slocan Group are tightly and disharmonically folded. Early minor folds are tight to isoclinal with moderate east plunging, southeast inclined axial planes and younger folds are open, southwest plunging with subhorizontal axial planes. The sedimentary sequence has been regionally metamorphosed to lower greenschist facies.

South of the occurrence, the Slocan Group has been intruded by the Middle Jurassic Nelson intrusions which comprise at least six texturally and compositionally distinct phases ranging from diorite to lamprophyre. The most dominant phase is a medium to coarse grained potassium feldspar porphyritic granite. Several feldspar porphyritic granodiorite dikes, apparently related to the Nelson intrusions, also cut the sedimentary sequence near the occurrence (Paper 1989-5).

The property is underlain by quartzite, calcareous quartzite and limestone of the Slocan Group. The sedimentary rocks generally strike 130 degrees and dip 55 degrees southwest. The occurrence consists of a fissure vein striking 050 degrees and dipping steeply southeast. The vein varies from a few centimetres up to 20 centimetres in width and carries argentiferous galena and quartz. The vein is exposed on the southwest portion of the Sapphire Crown grant and on the northeast slope on the Gem Crown grant. It has been explored with several short adits, raises and shafts. A similar, narrow, subparallel fissure vein is exposed about 200 metres southeast on the Minneapolis Crown grant. This vein has been exposed in three short adits, but there is no recorded production.

Production from the Sapphire vein yielded 41,087 grams of silver and 9116 kilograms of lead from 15 tonnes mined in 1899.

During 2008 through 2010, Klondike Silver Corp. completed programs of soil and rock sampling, geological mapping and trenching on the area.