The Nel occurrence is underlain by quartz diorite of the Mesozoic Coast Plutonic Complex in contact with Upper Triassic Karmutsen Formation (Vancouver Group) basalt. Extensive magnetite-garnet skarn is developed at or near this contact within the volcanic rocks. Diamond drilling intersected altered volcanics with patchy iron skarn development and a more massive magnetite- pyrite body. A drill core sample from the magnetite body assayed 54.46 per cent iron and 0.13 per cent copper (Assessment Report 358).