The Lookout occurrence is situated at 885 metres elevation above sea level on the north side of Fry Creek, just east of the junction with Carney Creek, in the Slocan Mining Division.
Regionally, the area lies within the Kootenay Arc near the margins of the Ancestral North American Terrane. The Kootenay Arc is a curving belt of highly deformed metasedimentary and metavolcanic rocks which includes the Upper Proterozoic Horsethief Creek Group, the Eocambrian Hamill Group, the Lower Cambrian Badshot Formation, and the lower Paleozoic Lardeau Group. The volcano-sedimentary sequence is intruded by numerous Ordovician, Devonian and Mississippian granitoid plutons. The rocks have undergone regional metamorphism to middle or upper greenschist facies (Paper 1993-1).
The occurrence is situated near the contact of the Cretaceous Fry Creek intrusion within slate and schist of the Proterozoic Horsethief Creek Group and quartzites of the Lower Cambrian Hamill Group.
The Fry Creek intrusion, in the vicinity of the occurrence, is a coarse muscovite quartz monzonite that shows some evidence of post-crystalline deformation. Potassium/argon age determinations of four separate muscovite samples from the intrusion yielded ages ranging from 97 to 63 Ma with an average age of 83.5 Ma (Geological Survey of Canada Memoir 369).
A placer claim was established on Fry Creek in 1893 but the area remained inactive until the early 1920s when prospecting work by D.M. Wadams traced the source of the placer to a bedrock occurrence near the junction of Fry and Carney creeks.
The bedrock mineralization consists mainly of masses and disseminations of auriferous pyrite associated with quartz veins emplaced parallel to the foliation of the sedimentary rocks. Gold is also associated with narrow pyritic seams and fractures within the monzonite. A 15-centimetre chip sample taken across an oxidized mineralized seam assayed 97 grams per tonne gold (Minister of Mines Annual Report 1926).
In 1935, an attempt was made to recover placer gold from Fry Creek below the bedrock occurrence. This effort yielded 31 grams of gold (Minister of Mines Annual Report 1935).
