The Sugar 9 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. The stratigraphy is intruded by dioritic rock of the Triassic to Tertiary Coast Plutonic Complex.

In 1988, Lacana Exploration carried out prospecting traverse within the cirque draining into the Stikine River from Warm Springs Mountain. The rocks in this cirque are predominantly volcanic but were metamorphosed by local intrusions. A diorite to granodiorite plug was observed to the north. Within the volcanics are lenses of pyrite and pyrrhotite. Banded sediments are evident along the cliffs of the cirque. A sample of semi massive sulphides assayed 0.4 per cent copper and 7.5 grams per tonne silver (Sample 1525, Assessment Report 19195).

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.