The Sugar 11 occurrence is located about 20 kilometres north-northeast of the confluence of the Stikine and Iskut rivers. The area 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 the Middle Jurassic Warm Springs Mountain Pluton consisting of monzodiorite to gabbro.

The geology on the south side of Warm Spring Mountain includes the contact of granodiorite with minor amounts of sediments. The majority of the rock is homogenous unaltered intrusive. The contact zones show trace amounts of chalcopyrite and pyrite.

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.