The Saddle 2 showing, 70 kilometres north-northeast of Haines, Alaska, was discovered as a result of high gold values in panned silts. The Saddle 2 showing is located between the Hubbard Fault and the Delani Fault system of the Alexander Terrane. The area is under- lain by complexly deformed, generally low grade metamorphosed, pre- dominantly Paleozoic rocks. Locally, metamorphism resulting from the Oligocene Tkope River Intrusion includes development of hornfels texture, silicification, skarn mineralogy and recrystallization.

The mineral occurrence is hosted by a biotite schist which is iron rich and magnetic with a rusty brown color. The "subcrop" ex- posure is rubbly with malachite stained fractures and minor chalco- pyrite. A chip sample from the "subcrop" assayed 21.2 grams per tonne silver, 1.08 per cent copper, and 0.10 grams per tonne gold (Assessment Report 14222).