The area is mainly underlain by Tertiary andesites and basalts and by some sediments of the Mississippian to Triassic Cache Creek Group. A mylonite of probable granitic origin is exposed in a creek bed and contains minor disseminated pyrite, chalcopyrite and pyrrhotite.

The Blackwater group of claims was staked in 1972 by Rudolf Bader and Gottlieb Gergorich and were sold to Bali Exploration Ltd who in 1972 and 1973 conducted 80 km of airborne magnetic and electromagnetic surveying, 50 km of ground VLF and magnetometer surveying and collected 472 soil samples. In 1976 Bali is reported to have excavated 6 pits and conducted prospecting.

The BW 1 and BW 2 claims were staked in 1984 by Eldor Resources Limited. Initial interest in the area resulted from a reconnaissance stream sediment survey conducted in 1982. Follow-up work in 1983 consisted of more detailed stream sediment sampling, prospecting, and reconnaissance till (heavy mineral) sampling. Work in 1984 included the collection of 47 till (heavy mineral) samples and 2 rock samples. The BW claims are in the area of the Bali’s G claims. Eldor Resources reported that the Bali’s assessment reports consisted of confused maps and misplotted claims and was not able to locate the showing.