The Arrowsmith 3 occurrence is located on the southern side of the Cameron River, approximately 18 kilometres west- southwest of Port Alberni.

The area is underlain by Nitinat, Myra and Buttle Lake Formation rocks of the Paleozoic Sicker Group, Karmutsen Formation rocks of the Triassic Vancouver Group and Cretaceous Nanaimo Group rocks which have been intruded by Tertiary Sooke Intrusions. These occur most commonly as flow breccias or agglomerates, including some massive flows, and rare pillow basalts. Locally, medium grained, generally massive, basaltic tuff is interbedded with the flows. The stratigraphy strikes north-northwest and dips to the east. Malachite staining is associated with jasperoid lenses and silicification apparently localized along stratigraphic contacts in the volcanic sequence.

Locally, north- south trending pervasive quartz-carbonate alteration zones contain anomalous levels of gold, silver, copper and arsenic. The alteration consists of 70 to80 per cent carbonate, 10 to15 per cent silica, 1 to 5 per cent fuchsite, trace to 5 per cent volcanic fragments and 1 to 2 per cent pyrite and rare chalcopyrite.

Grab samples from the alteration zones have yielded values up to 79 parts per billion gold, 4.3 parts per million silver, 3350 parts per million copper and 220 parts per million arsenic (Assessment Report 18557).

The Arrowsmith 1-4 claims were staked in 1985 and 1986 by Blue Sun Resources Corporation. In 1988, Newport Metals completd a program of stream silt and rock geochemical sampling, prospecting and geological mapping. Between 1989 and 1991, Blue Sun completed programs of prospecting, geological mapping and geochemical sampling.