The KR 7 showing, located 70 kilometres north-northeast of Haines, Alaska, was discovered in 1983 as a result of high gold values in panned silts. The Klehini River property is subdivided into two groups. This occurrence is in claim block KR 7 of the Delta Group. The occurrence is found between the Hubbard Fault and Denali Fault system of the Alexander Terrane. The area is underlain by complexly deformed, generally Paleozoic rocks. Locally, thermal metamorphism resulting from the Oligocene Tkope River Intrusion includes development of a hornfels texture, silicification, skarn mineralogy and recrystallization. Quartz veining is restricted to the intrusion and probably formed from volatiles released at a later stage of the intrusion. In this area the intrusion is a fine to medium-grained hornblende diorite with many large xenoliths of recrystallized wallrock.

Two steep, parallel, competent quartz veins occur in a diorite host. The first vein extends for about 1200 metres over an elevation difference of 1260 to 1480 metres. The vein is up to 3.5 metres thick and is surrounded by a band of schistose, buff to green coloured quartz-carbonate-sericite altered diorite. It is observed to branch, anastomose, pinch out, and is locally poddy.

The second vein is found 200 metres southwest of the above. It is exposed for a strike length of about 200 metres from an elevation of 1400 to 1500 metres before being covered by glacial ice. It is similar to the above vein, except that a 5 to 10 centimetre thick band of coarse pyrite and chalcopyrite is found in the centre of the structure at one exposure. The best assay values were 0.58 grams per tonne gold, 23.31 grams per tonne silver and 1.4 per cent copper (Assessment Report 14210).