The Sugar 4NE Northeast occurrence is located about 20 kilometres north-northeast of the Stikine Iskut Rivers confluence. The general 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 Triassic to Tertiary Coast Plutonic Complex dioritic rocks. An Early Jurassic granodioritic stock of the Early Jurasic Texas Creek Plutonic Suite intrudes the strata to the north.
The showing is hosted by silicified metamorphic schist intruded by feldspar porphyry and granodiorite. The schists were originally described as a possible shale or mafic volcanic rock. The location is near the mapped northwest trending contact of Stikine assemblage limestones and Stuhini Group marine sediments.
Prsopecting by Lacana Exploration in 1988, resulted in the reporting of chalcopyrite bearing quartz or chalcopyrite as disseminations in country rock, over a length of at least 1 kilometre. A 1988 grab sample assayed 1.63 grams per tonne gold, 34.5 grams per tonne silver, 0.45 per cent copper, 0.17 per cent zinc and 0.098 per cent lead (Sample 1994, Assessment Report 19196). This sample was described as “dark orange brown weathered mafic volcanic (or shale), very fine grained with pyrite and chalcopyrite veinlets with quartz and carbonate veinlets”. Follow up sampling by Lacana in 1999 yielded only one sample high in copper (0.2 per cent) but with little significance in assay values from other elements or from other samples (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.