The "South Area" or "South Side" was discovered in 1987, about 3.5 kilometres southeast of the Smith-Nash vein (093E 014), on the opposite side of the valley. A total of sixteen gold-bearing veins have been found of which eight warrant further exploration. These are the Vance, Kayo, Pat, Main, Sven, Johnny, R and Z veins.

The geological setting is similar to that of the Smith-Nash occurrence. Intermediate to acidic intrusive rocks (diorite, granodiorite, granite, gneissic leucogranite) of the Tertiary-Jurassic Coast Plutonic Complex have intruded northwest striking, moderately east dipping metasediments of the Upper Triassic-Middle Jurassic Hazelton Group. The metasediments comprise metagreywacke, calcareous phyllite, chlorite schist, thin bedded cherty hornfels and quartzite with black shaly horizons. Greenstone is also prevalent in the area. Dikes composed of andesite, diabase and hornblende porphyry cut the metasediments.

North-northeast trending fractures and shearing control quartz veins. Mineralization consists of native gold, pyrite, chalcopyrite, bornite and tetrahedrite. Pyrite occurs in massive form, blebs, streaks, fracture fillings and pods within the quartz. Chalcopyrite is evident as disseminations and fracture fillings. A distinct brown iron alteration (limonite) envelope surrounds the quartz veining and is up to 2 metres wide.

In 1988, a trenching program on the Kayo vein was completed. The average of 6 samples from a trench yielded 6.57 per cent copper, 24.3 grams per tonne gold and 38.2 grams per tonne silver (Assessment Report 18479, page 7).