The area is underlain by the Lower Cambrian part of the Eagle Bay Formation consisting of siliceous and graphitic phyllites, phyllitic limestones and greenschist. The metavolcanics and metasediments generally strike northeast and dip 10 to 40 degrees northwest. The rocks are cut by late Cretaceous or Early Tertiary quartz-feldspar porphyry and mafic dykes with northerly trends.

The AXL 3 showing lies 3.5 kilometres southwest of the Lucky Coon (082M 012). Mineralization is exposed adjacent to bedded cherty tuffs within phyllites. Drilling, 1300 metres to the south east, intersected a mineralized horizon in rhyodacite tuff with assays of 0.288 per cent zinc, 0.02 per cent lead, 0.01 per cent copper and 12.34 gra_s per tonne silver over 6.1 metres in Hole No. AX1 and 0.15 per cent zinc, 0.07 per cent lead, 0.04 per cent copper and 3.43 grams per tonne silver over 4.9 metres in Hole No. AX2.