The Chip-Dixie (FY 2) occurrence is located east of Chip Creek, approximately 800 metres north of the Barriere River.

Regionally, the area is underlain by andesitic volcanic rocks, mudstone, siltstone, shale and fine clastic sedimentary rocks of the Devonian to Mississippian Foghorn Mountain and Slate Creek units of the Eagle Bay Assemblage. To the northwest marine sedimentary and volcanic rocks of the Devonian to Permian Fennell Assemblage are exposed.

Locally, as defined by diamond drilling, an andesite feldspar crystal tuff hosts narrow quartz veins with disseminated to massive, banded, coarse-grained sphalerite and galena mineralization.

To the southwest, near Chip Creek, a sulphide-bearing gossan zone, measuring 950 by 200 metres, is composed of rusty weathering and slightly friable crystal and "quartz eye" tuff, sometimes silicified and sheared. A heavily mineralized outcrop of quartz-feldspar porphyry is also exposed in the gossan zone.

In 1984, a grab sample from the gossan zone assayed 0.02 per cent copper and 20 parts per billion gold, whereas a sample of the porphyry assayed 0.066 per cent zinc and 0.01 per cent copper (Assessment Report 13036).

In 1988, diamond drill hole Bar-23 yielded up to 0.133 per cent copper, 5.46 per cent lead, 13.20 per cent zinc, 203 grams per tonne silver and 0.91 gram per tonne gold over 0.40 metre (Assessment Report 18489).

In 1981, Craigmont Mines examined the area as the CH claims and completed a ground geophysical survey.

In 1984 and 1985, Zone Petroleum Corp. completed programs of rock and soil sampling, geological mapping and ground geophysical surveys on the area as the Chip and Dixie claims. Also, at this time Tylox Resources completed a program of soil sampling, geological mapping and ground geophysical surveys on the area immediately east as the Faye claims. In 1986, Falconbridge Copper mapped and sampled the area immediately west as the Anna claims.

In 1987, Minnova Inc. completed a program of rock sampling, geological mapping and a 15.0 line-kilometre ground electromagnetic survey on the area as the FY 2 claim. Also, at this time Minnova Inc. completed eight diamond drill holes, totalling 829.3 metres, and a 36.5 line-kilometre ground electromagnetic survey on the area immediately west and north as the SC and Anna claims. In 1988, four diamond drill holes, totalling 600.9 metres, were completed on the FY and Dixie claims. In 1989, a further program of soil sampling and five diamond drill holes, totalling 534.8 metres, were completed.