The Lady Luck 7 occurrence is located 9 kilometres south west of Terrace, 4 kilometres west of Lakelse Lake. In 1966–1967, a mineral exploration program of combined photogeological and field geological analysis, photogeology, soil geochemical and geophysical surveys were conducted in the area by Cree Lake Mining Company Limited.

Paleozoic volcanics, consisting of greenstone, and sediments, consisting of limestone, quartzite and shale, are intruded by diorite and granodiorite of the Cretaceous to Tertiary Coast Plutonic Complex. The sediments are altered to skarn composed of epidote and garnet with minor pyrite, chalcopyrite, and molybdenite as disseminations and small patches.