The Sugar 4 occurrence is located about 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.

Gossanous structures with a northeast southwest orientation cut and offset the northwest trend of the stratigraphy. This includes 3 structures that cut the south slope of Darsmith Creek southeast of Eagle Crag Mountain. Possibly associated with the central of the three above mentioned structure are limestone hosted, zinc bearing skarn, such as the Sugar 4 occurrence.

The Sugar 4 skarn occurrence is located in the area of a northwest trending contact of Stikine limestones and Stuhini marine sediments. The area immediately around the mineralized skarn consists of limestone and andesite intruded by diorite, granodiorite and feldspar porphyry dikes.

A 1.1 metre chip sample of altered, rusty host/skarn with massive pyrite, sphalerite, specular hematite and trace malachite assayed 0.15 per cent copper and 6.6 per cent zinc (Sample 30828, Assessment Report 20192). A sample of andesitic gossan consisting of dark green skarn with chalcopyrite, pyrite and sphalerite assayed 21.8 grams per tonne silver, 0.88 per cent copper and 0.07 per cent zinc and a trace of gold. (Sample 30872, Assessment Report 20192).

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.