The Hotai occurrence is located 6 kilometres west of Highway 37 about 35 kilometres south of the community of Dease Lake.
The Hotai showing area is primarily underlain by the Late Triassic Latham Creek Pluton, a strongly foliated hornblende quartz diorite. This is in contact with weakly to moderately foliated quartz monzonitic intrusive rocks to the south. Shale and andesite of the Middle Triassic Hazelton Group also occur.
At Hotai, mineralization appears to have an association with two previously defined induced polarization (IP) chargeability anomalies with significant aerial extent. Rock sampling has identified alteration and mineralization styles consistent with those expected in the outer halo of a porphyry system. Rock results from the Hotai block yielded maximum gold values of 288 parts per billion (ppb) gold from a syenite with less than 1 per cent chalcopyrite and up to 1 per cent pyrite (sample THR-02). This sample also assayed 1098 parts per million (ppm) copper and is located about 1800 metres north of sample THR-15. Sample (THR-15) taken from an andesite with 3-4 per cent chalcopyrite assayed 3172 ppm copper (Assessment Report 37065).
From 2011-12, Quartz Mountain Resources Ltd. completed extensive geochemical, prospecting, mapping, geological, geophysical and drilling work in the area. The work identified several targets, including what are now the Lode (104I 170) and Hotai claim blocks.
Work over the Hotai block in 2012 included an IP survey which identified two significant chargeability anomalies; one in the south measures 750 by 1700 metres and is coincident with a magnetic high feature, and the second anomaly to the north occurs over 1100 by 1700 metres and is coincident with a ringed magnetic high with a magnetic low centre. Stream sediment sampling on the block returned values up to 98.2 ppm copper and soil grid sampling returned several elevated silver and copper anomalies. Rock sampling returned results up to 0.56 per cent copper and 3.7 ppm silver from potassic altered diorite outcrops.
In 2017, Kestrel Gold Inc. carried out surface exploration on the Dease Porphyry project (South Block) which consisted of geochemical soil, rock and biogeochemical sampling. A total of 92 rocks were collected over the property, 37 from the Hotai block and 55 from the Lode block (104I 170). A total of 29 soil samples and 91 biogeochemical samples were taken variably over prospective zones on the Hotai block.