The Sugar 5-6-8 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.

In 1990, Lacana Exploration reported that on the Sugar 5, 6 and 8 claims quartz veining of weak to moderate strength stockworks contained traces to notable amounts of chalcopyrite and sphalerite. Veins range from 5 cm to 2 metres in width. The plotted location of the Sugar 5-6-8 occurrence is for an area of “chalcopyrite quartz veins” indicated on the Geology Map (South Sheet) from Assessment Report 20192. At the time, Lacana reported these systems to be too widespread to be of economic interest.

Twelve claims covering an area of 6 km (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, collected 259 rock samples. Thirteen areas (or “showings”) of interest were reported by Lacana.