The Kati occurrence is located north of the Sarita River.

The area is underlain by volcanic rocks of the Jurassic Bonanza Group that have been intruded by granodioritic rocks of the Jurassic Island Plutonic Suite.

Locally, pervasive kaolinization, silicification and pyritization have occurred in contact zones between altered volcanic rocks and feldspar porphyry intrusions or shears.

In 1981, Arbor Resources Inc. completed a program of geological mapping, prospecting, a ground electromagnetic survey and geochemical sampling. Soil geochemical sampling returned up to 425 parts per million copper and averaged greater than 100 parts per million copper over an area of 750 metres. Rock samples, taken near the area of the anomalous soil samples, were assayed for gold and yielded up to 2 grams per tonne (Assessment Report 9159).