The Lyell Island Bitumen 2 occurrence is located on east- facing slopes, in the western head waters of Gate Creek on central Lyell Island.

The area is underlain by feldspar porphyry of the Lyell Island plutonic complex (Kano Plutonic Suite).

Locally, a bitumen occurrence is exposed in a roadside quarry. The bitumen consists of granular, black material filling open joints in an andesite porphyry.

In 1979 and 1980, J.C. Stephens Exploration completed programs of geochemical sampling and geological mapping on the area as the Tar claims.