The August 2 skarn is found where feldspar- and hornblende-porphyritic dikes intrude Permian limestone of the Stikine Assemblage.

The August 2 showing occurs as massive magnetite (up to 60 per cent) and chalcopyrite (up to 15 per cent) zones with 5 per cent pyrite and traces of sphalerite. They are very irregular in distribution with the longest continuous mineralization extending for 19 metres. Most often, the mineralization is strongly oxidized to goethite, jarosite, and malachite. Past results have shown that the highest gold values are associated with the magnetite-rich lenses. Several chip and representative grab samples were taken in 1990 by Gigi Resources. Sample 28230 yielded 6 grams per tonne silver, 0.69 gram per tonne gold, 3.4 per cent zinc and 0.41 per cent copper (Assessment Report 21061). The sample was taken at the contact of limestone intruded by hornblende porphyry dike where small pods contained strongly oxidized patches with no sulphides. The discontinuous nature of the skarn mineralization limits the immediate potential of these showings.