The Sugar 7 occurrence is located about 20 kilometres north-northeast of the Stikine Iskut Rivers confluence. Government maps indicate the showing area as being underlain by the Devonian to Permian Stikine Assemblage though similar rocks of the Upper Triassic Stuhini Group occur nearby.

An area of quartz breccia in andesitic flows is shown on 1989 geology map by Lacana Exploration. A grab sample across a 1 metre pyritic zone with traces of chalcopyrite was collected and assayed 0.08 per cent copper (Sample 30733, Drawings 5 and 6, 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, mapped the claims and collected 259 rock samples. Thirteen areas (or “showings”) of interest were reported by Lacana.