The Klawli River placer gold occurrence is located along the southern portion of the Klawli River and centred approximately 4 kilometres north of the east end of the upper Nation Lakes.

Regionally, the area is underlain by undivided volcanic rocks of the Lower Jurassic Chuchi Lake Succession (Takla Group), quartz monzonitic to monzogranitic intrusive rocks of the Lower Jurassic Hogem Plutonic Suite and gabbroic to dioritic intrusive rocks of the Middle Jurassic Aplite Creek Plutonic Suite, which may be related to the Hogem Plutonic Suite.

Locally, subangular placer gold is reported along the lower (southern) portion of the Klawli River. The majority of the east bank of the Klawli River is characterized by a low flat bench just above river level. This is in contrast to the west bank of the Klawli River where a steep slope of glacial overburden extends for approximately 50 m. At numerous locations the river is actively cutting into this bank and a constant supply of sediment is added to the river. Certain productive areas of the river are reported to be replenished on an annual to semi-annual basis.

No production records are known from the area, but active placer claims are reported.

Reconnaissance prospecting and panning, in 2013, is reported to have identified small grains, up to 1 millimetre in size, with moderately abundant flour gold. The grains are reported to show various shapes and geometries, including kidney-shaped, angular and flattened flakes.