The Dug occurrence is located in the southern headwaters of Blowdown Creek, at an elevation of approximately 2100 metres.
The region is underlain by metasedimentary and metavolcanic rocks of the Mississippian to Jurassic Bridge River Complex, intruded by dominantly granodioritic stocks of the Jurassic to Tertiary Coast Plutonic Complex.
Locally, a muscovite-quartz monzonite to granodiorite hosts 0.5 to 4 centimetre wide sericite-quartz veinlets with disseminated chalcopyrite, bornite and molybdenite. Malachite and azurite are also reported. The veinlets primarily strike 85 to 92 degrees and dip 20 to 40 degrees to the south. Mineralization has been traced over a length of 900 metres with a core zone measuring approximately 350 by 350 metres.
In 1980, samples yielded up to 0.114 per cent copper and 0.011 per cent molybdenum (Sample DR-38; Assessment Report 9114). Talus samples of a granodiorite with molybdenite mineralization, taken from a ridge located approximately 1.8 kilometres to the west-southwest, yielded up to 0.017 per cent copper and 0.160 per cent molybdenum (Sample DR-51; Assessment Report 9114).
In 1980 and 1981, Denison Mines completed programs of geochemical sampling and geological mapping on the area as the Dug claims.