The Lexington Mountain region is underlain by a series of metamorphosed Cambrian to Devonian sedimentary and volcanic rocks of the Lardeau Group which overlies the Lower Cambrian Badshot Formation in the east. The predominant structural features in the area are northwest trending and plunging overturned folds and regional semiconcordant to concordant faults. The strata within these structures are steeply east dipping with a variable plunge to the northwest.

Three distinct northwest striking limestone-chlorite schist contact zones spaced at roughly 1 kilometre intervals cross the property. The Index Formation (Lardeau Group) hosts similar mineralization within these zones and may represent either folded repetitions of the same contact or stratigraphic repetitions of similar depositional environments. The mineralization occurs as both disseminated and massive zones of galena, pyrite and sphalerite associated with dolomitized limestone and silicification invariably developed with siderite-rich zones containing hematite and magnetite localized along the limestone-chlorite schist contacts.

The mineralization at the Daffodil showing is similar to the Royal showing (082KNW202) where low grade galena ore occurs in two parallel quartz veins. Mineralization in a series of occurrences along strike to the southeast (Banner, 082KNW163; Royal, 082KNW202; Kitsap, 082KNW148; and Alma, 082KNW124) consists of intermittent lenses of galena-sphalerite in crosscutting fractures and quartz-carbonate veins within siderite or ankerite alteration zones. Alteration consists of sericitization of phyllite, ankerite-siderite alteration of dolomite and dolomite alteration of limestone.

This area was originally explored in the late 1800s and early 1900s when prospectors discovered widespread precious and base metal mineralization.