The Shan South occurrence is located about 3 kilometres west of the Skeena River approximately 25 kilometres northeast of Terrace, and 4 kilometres north of Usk.

Triassic volcanics and metavolcanics are intruded by quartz diorite and granodiorite of the Cretaceous to Tertiary Coast Plutonic Complex. The volcanics consist mainly of rhyolites, porphyritic flows and minor basalt. All rocks are cut by faults and shear zones with associated quartz veins.

Molybdenite, associated with pyrite, occurs as disseminations, rosettes and smears in widely spaced quartz veins and shears over a 900 by 400 metre area that trends south-southwest. The mineralized zone, occurring mainly in the intrusive rocks, exhibits quartz-sericite-clay alteration. In the north part of the zone, several north-northwest trending mineralized veins occur. These veins measure up to 100 metres long and 3 metres wide. At a higher elevation 600 metres to the south, several drillholes intersected molybdenite within quartz veins and veinlets. One hole intersected 15 metres of 0.218 per cent molybdenite and a second hole, 270 metres to the west, intersected 49 metres of 0.108 per cent molybdenite (Property File - Drilling notes, 1970).

In 1967, Kokanee Moly Mines Limited conducted a program of diamond drilling on the Shannon Creek claims. This included 1624 metres of drilling over 11 holes. In 1971, New Star Gold Mines conducted a soil survey. Between 1979 and 1980, Rio Tinto Canadian Exploration Ltd. conducted an exploration program that included geological mapping, a soil survey, a stream sample survey, an induced polarization survey and two drillholes.

In 2005, BCM Resources Corp. (formerly known as BC Moly Ltd.) acquired the property. In November 2006, BCM Resources reported initial assay results for the Las Margaritas zone of the Shan South property, including 0.118 per cent molybdenum over 59.65 metres (Press Release - BCM Resources Corp., November 30, 2006). In January 2007, further results included 0.107 per cent molybdenum over 122.8 metres (Press Release - BCM Resources Corp., January 5, 2007).

In 2011, BCM Resources Corp. completed 3421.4 metres of diamond drilling in 16 holes. Highlights include drillhole LM054, which assayed 0.064 per cent molybdenum over 189 metres, including a 42-metre section that assayed 0.119 per cent molybdenum (Press Release - BCM Resources Corp., August 29, 2011).