The Nika occurrence is located on a south-southeast–facing slope, northwest of the Ingenika River and approximately 7.6 kilometres southeast of the south end of McConnell Lake.

Regionally, the area is underlain by marine sedimentary and volcanic rocks of the Pennsylvanian to Permian Lay Range Assemblage and undivided volcanic rocks of the Upper Triassic Takla Group, which have been intruded by monzodioritic to gabbroic rocks of the Lower Jurassic Melville and Lehto plutons (Mitchell Intrusions).

Locally, a northwest-trending, chloritized, sheared and gneissic zone in a monzodiorite hosts gold and silver values.

Work History

In 1981, Golden Rule Resources Ltd. completed a program of prospecting, geochemical (rock and soil) sampling and a 22.5 line-kilometre airborne magnetic and electromagnetic survey on the area as the Nika 1 claim. A single rock sample (N-RD-1) assayed 1.04 grams per tonne gold and 29.0 grams per tonne silver (Assessment Report 10338).

In 1983, Golden Rule Resources completed a further program of prospecting, geological mapping, soil sampling and a 11.5-line-kilometre ground electromagnetic survey on the Nika 1 claim. This work indicated that the 1981 sample might have come from a large, mineralized boulder.