The Sugar Lake Two showing is located about 8 kilometres southeast of Sugar Lake.
The area is underlain by metamorphic rocks of the Proterozoic to Paleozoic Kootenay Assemblage. Gneiss is the most predominant lithology, except in local areas that have escaped intense metamorphism. The principal minerals in the gneiss are quartz, feldspars, biotite, muscovite, hornblende, pyroxene, sillimanite and garnet. Kyanite occurs as an accessory mineral. Kyanite occurs as a minor constituent in schist, pegmatite or vein quartz. The individual bladed blue crystals commonly attain lengths of 5 centimetres or more.
Staurolite occurs in thick prisms, commonly 7 centimetres long. The mineral is reddish brown to black and commonly exhibits the cruciform twinning.
The amount of kyanite and staurolite at this location is not enough to be of commercial value, but richer deposits may exist in the area.