The Spanish Mountain Placer property is located approximately 6 kilometres east of the village of Likely and 70 kilometres northeast of Williams Lake. Access to the area is provided by a 85 kilometre paved secondary road from 150 Mile House on Highway 97 to Likely, and then for approximately 10 kilometres by the gravel-surfaced Spanish Lake Road forestry roads.

Pleistocene gravels, which host much of placer gold in the Spanish Mountain area, are often truncated and/or overlain by the basal and lodgement till which also mantles much of the topography in this area. Post-glacial processes have since reworked or buried these deposits during the formation of alluvial fans along the hillsides and gravel terraces in the valley bottoms. Nearby bedrock consists of Upper Triassic Nicola Group black graphitic shales, shaly siltstone and massive siltstone with lesser volcanic tuff intruded by dikes and small stocks of feldspar porphyry.

In 1994, material had been stripped in the process of exposing a small area from which a small test mining operation was tested for its placer gold potential. Three (30 to 40 kilogram) samples were, at that time, processed in a placer recovery jig and one bank run sample of approximately 50 yards was run through a placer recovery plant. This work indicated a grade that ranged between 0.025 to 0.081 ounces per yard (0.86 to 2.78 gram per yard). In 2004 and 2005, several reverse circulation holes penetrated some intervals similar to that which had been tested in 1994. It was for this reason that during the 2004 and 2005 drill programs these intercepts were measured, sampled and analysed to assess the placer gold potential of this area by Skygold Ventures Ltd. and Wildrose Resources Ltd.