The Sugar 2NE occurrence is located about 20 kilometres north-northeast of the Stikine Iskut Rivers confluence. The general area is underlain by sedimentary and volcanic rocks of the Devonian to Permian Stikine Assemblage intruded by a pluton of the Triassic to Tertiary Coast Plutonic Complex consisting of dioritic rocks.

A dark brown-orange, green-dark grey fine grained mafic volcanic with disseminated pyrite and 1 mm quartz veinlets assayed 0.37 gram per tonne gold. (Sample 1253, Assessment Report 19196). Located about 500 metres to the west-soutwest, a sample of metasediment subcrop with pyrrhotite and chalcopyrite assayed 54 parts per billion gold and 0.065 per cent copper (Sample 30426, Assessment Report 19196).

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.