The South Gracey showing is located on a ridge top east of Gracey Creek approximately 17 kilometres south of the confluence of Gracey Creek and Unuk River. It is approximately 65 kilometres southwest of Bell 2 Lodge on Highway 37, and 53 kilometres northwest of Stewart, B.C.

The South Gracey area is underlain by sediments and volcanics of the Upper Triassic Stuhini Group which are intruded to the west by the Early Tertiary quartz monzonitic Saddle Lake Pluton.

Prospecting and sampling in the Gracey Creek area discovered a roughly 600 by 200 metres northwest-trending zone of elevated silver and molybdenum plus possible gold, copper and lead in amphibolite-grade gneissic rocks, possibly metamorphosed Stuhini Group rocks, about 500 metres from the contact with the Saddle Lake Pluton. The gneiss is cut by quartz with possible pyrite, chalcopyrite, molybdenite, pyrrhotite, and galena veins striking 340 to 035 degrees and either dipping steeply or horizontally. The best sample from Colorado's 2016 program at this site contained 0.87 gram per tonne gold, 259 grams per tonne silver, 0.53 per cent copper and 0.864 per cent molybdenum (Sample 2640181, Assessment Report 36656). Molybdenite is typically present along quartz vein margins and there were minor occurrences of disseminated sulphides in gneiss. Veins were up to 1 metre wide but were limited in length and discontinuous.

Work History

In 2006 and 2007, Hathor Exploration Ltd. completed a 7228.7 line-kilometre airborne geophysical survey on the area as the Gracey claims of the Iskut project. In 2008, Max Minerals Ltd. examined the property.

In 2016, Colorado Resources Ltd completed a reconnaissance exploration program on their KingPin Property which covered the Dunn 2 and 35 other MINFILE occurrences on the property. Work included the collection of 147 rock chip and grab samples and a total of 129 soil samples (Assessment Report 36656).