The Lou 2 (Branch 4000) occurrence is located on the western flank of Mount Bagshaw, separating the north and south arms of Gray Creek and at an elevation of approximately 220 metres.

The area is underlain by a persistent band, greater than12 kilometres long, of stratified metavolcanic and metasedimentary rocks of the Upper Triassic Quatsino and Karmutsen formations (Vancouver Group). The band trends northwest and separates Jurassic to Cretaceous Coast Plutonic Complex rock of two different compositions, diorite and granodiorite.

Locally, a siliceous diorite with quartz veins hosts pyrite and chalcopyrite mineralization.

In 1991, a rock sample (91-70) assayed 22.2 grams per tonne silver and 0.27 per cent copper (Assessment Report 22515).

The area has been historically explored, since the late 1890’s, in conjunction with the nearby Doratha Morton (MINFILE 092K 023) and Alexandria (MINFILE 92K 028) gold mines.

The area was prospected as the Lou 2 claim of the Cordero property in 1991 and 1992 by Ripple Creek Resources. During 1997 through 2000, Thurlow Resources conducted exploration programs on the area, renamed the DM and Picton properties, on the HY, LO and FILL 2-19 claims. The programs consisted of soil sampling, rock sampling, and geological mapping. In 2008, Cuda Capital completed a 561.4 line-kilometre airborne magnetic survey on the area.