The Baltic No.1 past producer is located near the southern shore of Muchalat Inlet, approximately 900 metres north east of Silverado Creeks mouth.

The area is underlain by the Muchalat Batholith of the Jurassic Island Plutonic Suite. Small inclusions of greenish volcanic rocks of the Upper Triassic Vancouver Group occur in the fine-grained gneissic granodiorite of the batholith. Felsic and feldspar porphyry dykes are present, cutting granodiorite. Epidote alteration is pervasive in all rocks.

Mineralization is believed to be related to the dykes, and occurs in nine veins.

The No.1,2 and 3 veins are linked by quartz stringers, and of this group only the No.1 vein is described. The vein is exposed in the first 42 metres of the main adit. It is 10.0 to 30.0 centimetres wide and has been traced from the shore of Muchalat Inlet to an elevation of 76 metres, a distance of 305 metres. The vein strikes north- northeast and dips 70 degrees east. Locally, granodiorite wallrock exhibits mica, epidote and pyrite alteration. The vein consists of quartz, pyrite and sphalerite. Vein quartz is variably crushed and shows minor shearing. The highest values obtained from the vein came from an open cut near the shore where Geological Survey of Canada Paper 204 (page 19) reports an assay of 238.49 grams per tonne gold and 242.09 grams per tonne silver from a 2.5 kilogram sample.

Vein No.4 (the Perry Vein) includes a white weathering 25 centimetre wide felsite dyke. Mineralized quartz follows both sides of the 020 striking, 85 degree east dipping dyke. The quartz is 5.0 centimetres wide on the footwall of the dyke. Numerous quartz stringers pass upward to the hanging wall side of the dyke, to join a much wider vein of rusty, vuggy banded and crushed quartz that is exposed for 8.0 metres. This portion of the No.4 vein is 35.0 to 50.0 centimetres wide, and contains pyrite, pyrrhotite, chalcopyrite and sphalerite. Both the No.4 vein and the granodiorite wallrock exhibit epidote alteration.

Three narrow quartz veins outcrop at the shore east of the adit. The middle, No.5 vein, averages 15.0 centimetres in width and has been exposed over 12.0 metres. The vein contains smeared magnetite and pyrite, chalcopyrite, pyrrhotite and sphalerite.

Vein No.6 lies in Baltic 4 claim and is rusty, 30.0 centimetres wide and exposed by two open cuts between elevations of 49.0 and 61.0 metres.

Veins No.7,8 and 9 are quartz outcrops of uncertain merit.

Between 1934 and 1938, 130 tonnes of sorted ore from the Baltic and Silverado (092E 017) adits was shipped by Danzig Mines, yielding 5,567 grams gold, 10,294 grams silver and 87 kilograms of copper. The majority of the ore came from the Baltic adit, the amount that came from the Silverado adit is not known (Minister of Mines Annual Report 1949, p. 219).