The Fad copper-molybdenum soil anomaly is located immediately north of Fox Lake, approximately 21.5 kilometres northeast of Merritt.

The area is underlain by granitic rocks of the Lower Jurassic Nicola batholith.

In 1970, New Indian Mines Ltd. staked the Fad, Dal and Fox claims and completed an exploration program of prospecting, soil sampling and magnetometer surveys. Two small pieces of granite float containing specks of molybdenite were picked up on the north side of Fox Lake, immediately south of the copper-molybdenum soil anomaly. The float consisted of fractured granodiorite with quartz veinlets containing molybdenite along the fractures.