The Moly prospect is at 1350 metres elevation north side of Lardeau Creek, between Finkle and Gainer Creeks. The showing was discovered and drilled by Moly Gold Resources Limited, in 1984.

The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. They were deformed during the Antler orogeny in Devonian-Mississippian time and were refolded and faulted during the Columbian orogeny, in the Middle Jurassic. A large panel, the "Selkirk allochthon", was later offset to the northeast by dip-slip motion along the Columbia River fault.

The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit.

The Moly claim area is underlain by folded and deformed phyllites and grits of the Broadview Formation; however, the detailed geology of the area is poorly defined. Moly Gold Resources Limited located a strong gossan and diamond drilled one hole, for 20.11 metres, to test the occurrence. It intersected 2.59 metres of mineralized siliceous phyllite near a contact between phyllite and tuffaceous rock. The mineralized section included at least three quartz brecciated phyllite horizons, ranging from 0.03 to 0.46 metre in width, containing disseminated to semi-massive pyrite, sphalerite and galena. The best core section assayed 5.07 grams per tonne gold, 473 grams per tonne silver, 5.6 per cent lead and 2.56 per cent zinc over 0.21 metre.