Three stratigraphic assemblages have been mapped in the area: (1) Upper Palaeozoic sediments and volcanics of the Stikine Assemblage, (2) clastic sediments of the Triassic Stuhini Group, and (3) Lower Jurassic sediments and volcanics of the Hazelton Group.

Four plutonic suites intrude the above; (1) Late Triassic calc-alkaline intrusions coeval with Stuhini Group stratigraphy, (2) Jurassic Copper Mountain, (3) Jurassic Texas Creek and (4) Tertiary Coast Plutonic suite. Metallogenically, Texas Creek potassium feldspar megacrystic porphyries are of primary interest as they are spatially associated with a number of gold deposits and showings in the area.

With the area of the C1 zone average assays of 34.28 grams per tonne gold occur in quartz veins that crosscut altered sediments and volcaniclastics. These showings lie below the Stonehouse Gold Deposit (104B 107) on Johnny Flats. The juncture below the Johnny Mountain main Gold zone and the hummocky Johnny Flats is marked by a strong northeast trending fault that appears to separate a feldspar porphyry/ volcaniclastic sequence from a thick, tightly folded greywacke, lithic wacke, siltstone sequence. Movement along this fault is right lateral and exhibits about 150 metres offset (Grove, 1987).

Rocks on the Johnny Flats comprise a sequence of intercalated phyllitic grit, siltstone and thin rhyolitic members. These rocks occur in an area mapped as being underlain by Upper Paleozoic strata.

Mineralization associated with the quartz veining within the altered sediments consists mainly of pyrite with some sphalerite, galena and chalcopyrite. In 1984, samples taken from this area assayed 25.0 grams per tonne gold, 78.51 grams per tonne silver, 1.8 per cent lead, 0.7 per cent zinc and 11.79 grams per tonne gold, 40.11 grams per tonne silver, 0.3 per cent lead with 1.0 per cent zinc. Another sample from a quartz vein assayed 33.57 grams per tonne gold, 50.06 grams per tonne silver with 2.8 per cent lead and 1.6 per cent zinc (Skyline Explorations Ltd., Reg Project, 1984 Promotional Brochure).

Assessment Report 28103 (from Spirit Bear Minerals) quotes the following from a private company report by Skyline Gold. The C-1 prospect occurs in Stonehouse Creek as quartz veins containing high grade gold and silver with galena, sphalerite and chalcopyrite. Three mineralized veins have been exposed by trenching. Previous detailed sampling of these veins yielded grades as high as 60.9 grams per tonne gold and 520 grams per tonne silver across 0.9 metre as well as 45.8 grams per tonne gold and 101 grams per tonne Ag across 0.8 metre. A single drill hole drilled beneath two of the trenches encountered low gold grade quartz veining. A third vein discovered just downhill from the drill pad yielded a grade of 45.8 grams per tonne Au over 0.8 metre after drilling was completed.

Refer to Johnny Mountain (Stonehouse) (104B 107) for details of a common property work history.