The occurrence is located on the northern slopes of Lone Cone on Meares Island, approximately 11 kilometres north of Tofino.

Meares Island is underlain mainly by rocks of the pre-Jurassic Westcoast Complex. This complex is a heterogeneous assemblage of hornblende-plagioclase gneiss, amphibolite, magmatite, mafic migmatite, quartz diorite or tonalite and minor metasedimentary and metavolcanic rocks. This complex is considered to be derived from Sicker and Vancouver groups rocks which were migmatized in early Jurassic time. Its mobilized granitoid part is thought to have become the source of the Jurassic Island Intrusions.

The western part of the island has been in part mapped as volcanics and sediments of the Paleozoic Sicker Group. The strata are disrupted by a stock of Tertiary intrusions that may be related to the Tofino Intrusive Suite.

At the Lone Cone North occurrence, chalcopyrite lies along fracture planes and as scattered disseminations adjacent to these fractures near the contact of a quartz diorite intrusion on the northern flank of Lone Cone Mountain. The country rock, consisting of gabbro and diorite gneiss (Westcoast Complex) and andesite (Sicker Group?) hosts most of the mineralization, with a lesser amount found within the intrusive. Some pyrrhotite is found with chalcopyrite along dacite dikes within this zone.

The area was first explored in 1898 with the discovery of the Iron Cap deposit (MINFILE 092F 158), 2 kilometres to the southeast. In the 1960's and 1970's, Falconbridge staked and/or optioned the area and performed various exploration programs including geological mapping, self-potential and magnetic surveys and 6 diamond drill holes, totalling 66 metres. In 1982, the Lagoon claims were staked by D. Melrose and later optioned to Noramex Minerals. Between 1987 and 1990, Iron River Resources explored the area as the Lone Cone claims and performed programs of geological mapping, prospecting, magnetometer surveys and geochemical sampling.