The Ferguson No.2 (L.1587) occurrence is located on and near a beach on the southern side of Two Rivers Arm of Sprout Lake.

The area is underlain by andesite to basalt of the Upper Triassic Karmutsen Formation, Vancouver Group.

Locally, several small mineralized quartz veins are reported. The first vein up the hill, striking 050 degrees, has been opened up and examined for a length of 90 to 120 metres. The vein averages about 30 centimetres in width and contains pyrite, galena and sphalerite. Above this vein a short distance is a parallel vein of about 60 centimetres width. To the west a small cross-vein of about 30 centimetres width occurs.

A sample taken across 60 centimetres of the first vein assayed 1.3 grams per tonne gold (Minister of Mines Annual Report 1932). Gold values up to 22 grams per tonne were reported from sulphide rich areas.