The Kandy occurrence is located in the north eastern head waters of Knauss Creek, at an elevation of approximately 1400 metres.

The area is underlain by Lower Jurassic volcanics of the Hazelton Group and Upper Jurassic sediments of the Bowser Lake Group. The strata are comprised of laminated argillites, bedded tuffs and interbedded andesite flows. These have been intruded by granitic to dioritic rocks of the Eocene Carpenter Creek Plutonic Suite.

Locally, a quartz vein in shales and schists hosts sulphide mineralization. In 2004, a sample (K4) assayed 0.31 gram per tonne gold, 119.0 grams per tonne silver, and 1.12 per cent copper (Assessment Report 27676).

During 1996 through 2004, the area was prospected as the Kandy claims.