The Daly Shaft occurrence is located on the western slopes of Armstrong Creek, approximately 4 kilometres northeast of Keremeos.

The area is underlain by cherts, tuffs and greenstones of the Triassic Shoemaker Formation. These have been intruded by a Jurassic ultra basic body, primarily pyroxenite, to the northwest.

Locally, rusty and brecciated zones are hosted in greenstone and chert basement rocks. These rocks contain up to 5 to 10 per cent pyrite and magnetite with lesser pyrrhotite and chalcopyrite.

From 1984 to 1986, Grand National Resources completed programs of geological mapping, geochemical sampling and various geophysical surveys on the Daly claims. In 1989, the area immediately to the north was prospected as a part of the EPI 1-13 claims. Previous unrecorded exploration work consists of a number of trenches, open cuts and shafts, possibly related to historic work on the nearby Juniper (MINFILE 082ESW170) and Dolphin (MINFILE 082ESW012) crown grants.

In 1984, a grab sample of quartz rich dump material (65027) from a former vertical shaft returned 6.44 per cent lead, 11.34 per cent zinc and 35.9 grams per tonne silver (Assessment Report 12516).