The KC 1 occurrence is located on the slopes east of the headwaters of the north fork of Kliyul Creek, 9 kilometres south- southeast of Johanson Lake. It is within an area of bright red and yellow outcrop bluffs and talus slopes which define a zone of quartz-pyrite-sericite alteration within and peripheral to the northwest end of a mafic-ultramafic pluton that cuts volcaniclastic rocks of the Upper Triassic Takla Group (EMPR Open File 2005-4). This conspicuous alteration attracted early prospectors in the area, who discovered the Independence (MINFILE 094D 028) and Banjo (MINFILE 094D 029) gold-bearing quartz vein systems in the 1940s. The KC 1 occurrence, about 700 metres northeast of the Banjo, was discovered at a later date, during an exploration program by Golden Rule Resources in 1981 (Assessment Report 10346).

The KC 1 showing encompasses a system of northwest-striking shear zones and associated northwest-striking quartz-pyrite-chalcopyrite-galena veins that has been traced for a strike-length of about 1500 metres (EMPR Assessment Report 13580). Individual veins vary from 30 to 200 centimetres in width and have been traced for up to 37 metres (EMPR Assessment Report 10346). Several grab samples of mineralized vein material have yielded significant precious metal values, including one that contained 36.4 grams per tonne gold and 23.0 grams per tonne silver (Assessment Report 10346, Sample KC-DT-8).

In 1981, Golden Rule Resources on the Independence and Bap occurrences re-staked over BP's former claims and discovered small (0.3 to 2 metres) wide northwesterly-striking quartz-pyrite-chalcopyrite-galena veins on what is now the southern border of the Kliyul property.

In 1986, Ritz Resources optioned the KC 1 claims which included Independence (094D 028) and Banjo (Bap) (094D 029). They completed geochemical and geophysical surveys over two small grids in the northwestern corner of the property investigating the gold potential (Assessment Report 15583). The Banjo and North grid areas were surveyed for magnetics and VLF-EM.

In 1984, Golden Rule Resources, explored the potential of gold-bearing quartz veins on their KC claims which included Independence (094D 028) and Banjo (Bap) (094D 029). They reported an extensive 70 degree striking, variably silicified, fracture zone hosting 0.2 metre to 1.3 metre-wide quartz veins in regions of intense fracturing and silicification. Cross-fracturing in the quartz veins were described as mineralized with up to 30 pyrite and lesser galena, chalcopyrite and sphalerite; float samples assayed up to 122 grams per tonne gold and 70 grams per tonne silver (Assessment Report 13580).

In 1992 Noranda carried out 1:5,000 scale geological and alteration mapping and in 1993, they drilled 6 reverse circulation holes on the Kliyul skarn zone (Assessment Report 23033) and followed up with an airborne magnetic, electromagnetic, and radiometric survey (Assessment Report 23379). This airborne survey also covered (or nearly covered) 25 MINFILE occurrences including the KC 1 (094D 181) occurrence.

Refer to Independence (094D 028) and Banjo (Bap) (094D 029) for related geological and work history information.