Graphite is reported to occur at the Gem occurrence at or near the north shore of Kynoch Inlet, about 70 kilometres north of Bella Bella.

The mineralized rocks occur within a metasedimentary belt about 8 kilometres wide that extends northwest from Cascade Inlet to the head of Mussel Inlet and farther north into the Douglas Channel area. Typically, this Upper Paleozoic(?) package is comprised of biotite-hornblende schist, quartzite and limestone.

Several graphite occurrences, staked in the 1920s, were held by Western Canada Graphite Limited of Vancouver, of which the Gem was one. In a highly promotional prospectus (in Property File) published in 1929, the company described several graphite occurrences along Kynoch Inlet and one near Mussel Inlet to the north. The report states that graphite "has been found running through all these claims in such masses as to make the working of it practically a stoping or quarrying proposition. The veins containing it vary from 4 feet (1.2 metres) to 300 feet (91 metres); and the assays of samples taken show from 15% to 100% pure graphite".

Besides the Gem, the other graphite properties held by Western Canada Graphite were called Black Lead (103A 010), Giant (103A 011), Green Giant (093D 018), Grey Giant (093D 020) and Zenith (093D 021). No record of development exists for these properties.