The Squat area is underlain by Carboniferous rocks of the Stikine Assemblage consisting of fine-grained, clastic sediments and intercalated volcanic rocks which are altered to greenstone, phyllite, chert, and minor limestone. These rocks are intruded by Paleocene to Eocene felsite and quartz-feldspar porphyry dikes of the Sloko-Hyder plutonic suite, related genetically related to the Sloko Group volcanics.

Pyrite, chalcopyrite, sphalerite, and galena are reported to occur in a brecciated zone in the Paleozoic schists. The deposit appears to be bedded.

The Squat claims were first located in 1980 and were owned by Redfern Resources Ltd and Comaplex Resources International Ltd (Exploration in British Columbia 1980). In the early to mid 2000s, the Squat area was staked as part of the Taku property by Optima Minerals Inc. The showing was not visited by Optima Minerals.