The area is underlain by the Lower Cambrian part of the Eagle Bay Formation consisting of siliceous and graphitic phyllites, phyllitic limestones and greenschist. The metavolcanics and metasediments generally strike northeast and dip 10 to 40 degrees northwest. The rocks are cut by Late Cretaceous or Early Tertiary quartz-feldspar porphyry and mafic dykes with northerly trends.

Mineralization comprises sulphides of silver, lead and zinc within metasedimentary rocks on the north limb of the Nitwikwaia synform. The showings occur within a dominantly metasedimentary succession (EBGs) of siliceous and/or graphitic phyllite, calca- reous phyllite, streaky banded calc-silicate rock, limestone, and quartzite. The metasediments are stratigraphically underlain by chloritic schists and greenstone (EBG Preto et al in prepara- tion).

The mineralization occurs as layers, lenses and pods of semi-massive to massive sulphides, generally within a siliceous gangue. The sulphide horizons are generally well banded and conformable to the schistosity and, where observed, to the bedding. Intense deformation of the rocks has caused discontinuity and marked variability in the widths of the sulphide horizons which tend to thicken in the hinge zones of folds.

The Elsie deposit, 1200 metres southwest of the Lucky Coon (082M 012), consists of several showings and drill intersections along an 800 metre strike length. Mineralization, averaging 30 centimetres wide, is semi-massive galena, sphalerite, pyrite and minor chalcopyrite within greenschist underlain by black phyllites. A 0.75 metre sample from an adit assayed 357 grams per tonne silver, 26 per cent lead and 10.2 per cent zinc.