The Agnes 1-2 occurrence is located on the western-most south fork of Satchie River, approximately 1.1 kilometres southeast of the creek mouth.

In the Hesquiat Lake area, northwest striking limestones and volcanics previously assigned to the Quatsino and Karmutsen Formations (Geological Survey of Canada Map 53-17) have more recently been included with the Pennsylvanian to Permian Sicker Group (Geological Survey of Canada Map 1537A). These rocks are intruded by felsic granitic rocks of the Early to Middle Jurassic Island Plutonic Suite (Muchalat Batholith). A dioritic to gabbroic border phase is 500 metres wide.

Locally, several lenses of massive magnetite and mixed magnetite-skarn occur in altered limestone. The skarn is 24.0 metres wide and consists of garnet, epidote and quartz. It follows roughly the limestone-greenstone contact. Outcrops of diorite to the east, west and below the skarn limit its lateral potential.

The largest magnetite lens is 6.0 metres wide. Malachite staining is occasionally present. A grab sample assayed 39.88 per cent iron and 0.39 per cent copper (Assessment Report 464).

About 150 metres to the north- east, massive to scattered lenses of magnetite are exposed in an area 15 by 15 metres. Minor chalcopyrite and bornite are present. A sample from this mineralization, over a true width of 5.5 metres, assayed 23.35 per cent iron, 0.08 per cent copper, 0.02 per cent sulphur and 0.03 per cent phosphorus. A representative sample assayed 25.15 per cent iron and 0.28 per cent copper (Assessment Report 464).

A sample taken over a true width of 1.8 metres of massive magnetite assayed 41.08 per cent iron, 1.18 per cent copper, 1.35 per cent sulphur and 0.02 per cent phosphorus. A sample taken along strike returned 26.65 per cent iron, 0.45 per cent copper, 0.40 per cent sulphur and 0.06 per cent phosphorus (All assays from Assessment Reports 462, 464).

In 1962, Paco Resources completed a program of geological mapping and a ground magnetometer survey on the area. In 1969, Lindale Copper completed a program of geological mapping, soil sampling and a ground magnetometer survey. In 1982, Cominco completed a program of prospecting and geochemical sampling on the area as the Basin and Lake claims. In 1984, Flow Resources completed a program of geological mapping, soil sampling, trenching, a ground electromagnetic survey and 13 diamond drill holes, totalling 643.2 metres. The drill program explored a strike length of 84 metres and a total down dip extension of 28.5 metres on the Brown Jug structure, approximately 1800 metres southwest of Agnes 1-2.