The MN 1 occurrence is located on the northern coast Vargas Island, approximately 6 kilometres north west of the community of Yarksis.

The area is underlain by the Pacific Rim Complex, a highly disturbed assemblage of pelitic to arenaceous sedimentary and volcanic rocks of Upper Jurassic to Lower Cretaceous age. Pelitic rocks of the Complex have been metamorphosed to schistose rocks and melanges. The complex is in fault-contact with the West Coast Complex of basic gneiss and amphibolite derived from pre-Jurassic rocks.

Locally, highly arkosic greywacke and sandstone, and quartzite, argillite, tuff and limestone are interbedded with felsic to basic flows. Greywacke is described as consisting of feldspar and pyroxene grains in a micaceous chloritic matrix. The rocks strike east- southeast and dip moderately to steeply to the north.

Mineralization occurs sporadically for 1.5 kilometres along the northern shore of Vargas Island. It consists of pyrrhotite (plus or minus traces of chalcopyrite) as small lenses and stringers. The lenses are a few centimetres wide and of limited lateral extent. Minor disseminated chalcopyrite was observed between stringers. Manganese stain was observed on cleavages in all rock types.

In 1968 and 1969, Vargas Mines completed programs of geological mapping and silt and soil sampling on the area as the MN claim.