The Sugar 10 occurrence is located 20 kilometres north-northeast of the confluence of the Stikine and Iskut rivers. The Sugar region is underlain by limestones, limey sediments and marine sedimentary and volcanic rocks of the Devonian to Permian Stikine Assemblage and marine sedimentary and volcanic rocks of the Upper Triassic Stuhini Group. The stratigraphy is intruded by Triassic to Tertiary Coast Plutonic Complex dioritic rocks. An Early Jurassic granodioritic stock of the Early Jurassic Texas Creek Plutonic Suite intrudes the strata to the immediate north and the Middle Jurassic Warm Springs Mountain Pluton, consisting of monzodiorite to gabbro intrudes the strata to the immediate south along the Choquette River.

The Sugar 10 showing area is underlain by rocks of the Upper Triassic Stuhini Group consisting of rhyolite and dacitic tuffs and andesite. Feldspar porphyry and granitic plugs and dikes intrude the stratigraphy.

In 1988, a prospecting traverse started on a saddle north of Sugarloaf Mountain. To the northeast, a competent quartz vein was discovered that contained a high percentage of chalcopyrite, tetrahedrite and hematite. The vein narrows up the mountain and is covered in talus below.

The quartz vein is from 15 to 20 centimetres thick and contains malachite chalcopyrite, hematite within fractures in hornfels. The vein assayed 0.5 gram per tonne gold, 429 grams per tonne silver and 9.6 per cent copper (Sample1789, Assessment Report 19207). Another sample of quartz vein (apparently the same vein as sample 1789) with chalcopyrite, malachite and hematite assayed 2.69 grams per tonne gold, 137 grams per tonne silver and 1.02 per cent copper (Sample 1790, Assessment Report 19207).

Twelve claims covering an area of 6 kilometres (east-west) by 15 kilometres (north south) were staked as the Sugar 1-12 claim group in 1988 by Lacana Exploration Inc, a subsidiary of Corona Corporation. Prospecting in 1988 by Lacana on the Sugar 1-12 claims resulted in the collection of 299 rock samples and 15 silt samples. In 1989, Lacana prospected and mapped the claims, and collected 259 rock samples. Thirteen areas (or “showings”) of interest were reported by Lacana.