Kelly Creek flows southward from the Vital Range into Byrnes Lake, approximately 32 kilometres northeast of Takla Landing. Placer gold was originally found at a point approximately 2.4 kilometres up from its outlet into Byrnes Lake in 1933, 64 years after gold was discovered on Vital Creek (093N 044), 7 kilometres to the northeast. Work was apparently carried out at the same time as that on Alice Creek (093N 048) to the southwest. Several old buildings and trails around this site have survived to today.
The creek drains an area underlain by a north-northwest striking, variably dipping sequence of interbedded phyllite, andesitic tuff and minor limestone assigned to the Carboniferous to Jurassic Cache Creek Complex. These rocks host numerous barren-looking, locally rusty, white quartz veins varying up to a metre in width.
The postglacial waters of the creek apparently cut down through glacial material masking the west side of the valley almost to bedrock, concentrating the gold and facilitating its extraction.
Production records for Kelly Creek are unavailable, but the creek is believed to have been worked up until 1940 and the gold was reported to be fairly coarse (Minister of Mines Annual Report 1933, page A107).
Arquerite, a natural amalgam of mercury and silver common in the area, was also reported to have been recovered from the creek.