The Grey Eagle claim (Lot 793) is located 800 metres south of the Phoenix pit (082ESE020). It adjoins the Knob Hill claim to the northwest, the Aetna (082ESE022) to the north and the War Eagle claim (082ESE019) to the east. The claim was Crown granted to J.P. Graves in 1899.

Prior to 1912, the ore body was diamond drilled and developed by open cuts and stripping which exposed a body of magnetite as much as 10 metres thick with a lateral extent of more than 370 square metres. In 1916, the ore body, which was opened up by No. 2 Tunnel, amounted to 45,360 tonnes, running 0.2 per cent copper, 36 per cent iron and 0.7 gram per tonne gold (Annual Report 1916, page 259).

The magnetite occurs in flat lying sharpstone conglomerate of the Triassic Brooklyn Group. The ore is dense, massive magnetite containing disseminated grains of pyrite and a small amount of chalcopyrite. It is similar to the upper ores on the Knob Hill and Ironsides claims which have an 'iron cap'. Garnet in masses and as solitary crystals occurs as inclusions in the ore. Owing to the small size of the ore body and the small copper content, there has been no sustained mining of this deposit.

See Phoenix for additional details on development, geology and mineralization in the area.