The Two Gullies arsenic-mercury anomaly is located on the western bank of the Taseko River, approximately 5 kilometres northeast of Elkin Lake.

The area is underlain by Mesozoic andesitic volcanic and pyroclastic rocks of the Kingsvale Group. These have been locally intruded by strongly altered quartz diorites.

Locally, a 500 by 1000 metre carbonate-clay-hematite and silica altered zone is characterized by a dense network of carbonate veins, pervasive hematite and weak magnetite bearing lenses. Realgar is noted to occur as stringers, blotches and disseminations.

From 1984 to 1985, Brico Mining Limited completed programs of geological mapping, geochemical sampling, four diamond drill holes totalling 492 metres, and aeromagnetic and VLF electromagnetic surveys. In 1989, Placer Dome staked the area and completed programs of soil and rock geochemical sampling. From 1993 to 1994, the Path claim was staked by E. Alionis and a three-hole diamond drill program, totalling 321.9 metres, was completed.