The Hesquiat Lake magnetite occurrence is located on the eastern shore of Hesquiat Lake, approximately 750 metres southwest of the Satchie Creek mouth.

In the area, northwest striking limestones and volcanics previously assigned to the Quatsino and Karmutsen Formations (Geological Survey of Canada Paper 53-17) have more recently been included with the Pennsylvanian to Permian Sicker Group (Geological Survey of Canada Map 1537A). These are intruded by felsic granitic rocks of the Jurassic Island Plutonic Suite (Muchalat Batholith). A dioritic to gabbroic border phase is 500 metres wide.

The occurrence is indicated on Geological Survey of Canada Map 53-17 as a copper-iron occurrence, lying along the contact between limestone and intrusive rocks. It is assumed to be a skarn-type occurrence similar to the geological setting and the tenure of other mineral occurrences in the Hesquiat Lake area.

In 1962, Paco Resources completed a program of geological mapping and a ground magnetometer survey on the area. In 1969, Lindale Copper completed a program of geological mapping, soil sampling and a ground magnetometer survey. In 1982, Cominco completed a program of prospecting and geochemical sampling on the area as the Basin and Lake claims. In 1984, Flow Resources completed a program of geological mapping, soil sampling, trenching, a ground electromagnetic survey and 13 diamond drill holes, totalling 643.2 metres. The drill program explored a strike length of 84 metres and a total down dip extension of 28.5 metres on the Brown Jug structure, approximately 2 kilometres south of the Hesquiat Lake occurrence.