The Kaouk Mag occurrence is located north facing slopes overlooking the Artlish River, approximately 7.75 kilometres east-southeast of the river mouth.
The area between Kaouk and Artlish Rivers is, according to Geological Survey of Canada Map 4-1974, underlain by Jurassic granodiorite of the Island Plutonic Suite. Lower Jurassic Bonanza Group volcanics and sediments lie to the west and north.
A property examination (Property File - H. Veerman) indicates a northwest trending belt of Quatsino (?) limestone extending between the two rivers, possibly as a roof pendant within the intrusive rocks. The examination indicates pods of magnetite mineralization in the limestone.