The Sugar 12 occurrence is located 20 kilometres north-northeast of the confluence of the Stikine and Iskut rivers.

The Sugar region 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 Jurassic Texas Creek Plutonic Suite intrudes the strata to the immediate north and the Middle Jurassic Warm Springs Mountain Pluton, consisting of monzodiorite to gabbro intrudes the strata to the immediate south along the Choquette River.

The Sugar 12 showing area is underlain by rocks of the Upper Triassic Stuhini Group intruded by the Warm Springs Moutain Pluton.

The target of prospecting traverses in 1988 and 1989 was a large gossan evident along the cliffs above Choquette Glacier. The rocks are skarn altered volcanics and sediments. Skarn rocks are garnet, diopside in composition with various amounts of massive magnetite, pyrite and pyrrhotite. Alteration of chlorite and epidote is also common. Also noted in outcrop was pyrite with molybdenite (sample 20569) and chalcopyrite (sample 1536) (Assessment Report 20129). Large boulders sampled in 1989 yielded up to 1.4 per cent molybdenum (sample 30742) and a sample of talus assayed 0.26 per cent copper (sample 30724) (Assessment Report 20129).

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, collected 259 rock samples. Thirteen areas (or “showings”) of interest were reported by Lacana.