The Lost Horse 86 showing is situated on a ridge between Larcan and Johns creeks, 8.5 kilometres south-southwest of the town of Hedley and 4 kilometres west of the Similkameen River.

This region, between Larcan and Johns creeks, is underlain by the sedimentary facies of the Upper Triassic Nicola Group, comprised of argillite, sandstone and tuff, locally with limestone and conglomerate. This sequence is intruded from the east by granodiorite of the Middle Jurassic Cahill Creek pluton.

The showing is hosted in a westward dipping (40 to 70 degrees) sequence of argillite, with minor interbedded siltstone, tuff and limestone of the Hedley Formation (Nicola Group). The sequence is intruded by sulphide-rich hornblende feldspar porphyritic sills and dykes of the Early Jurassic Hedley Intrusions. The argillite is extensively altered ("calcic hornfelsed") in a 500 metre wide zone trending northward for at least 800 metres, resulting in a white-weathering, variably coloured, siliceous and massive "chert", containing red-brown garnet and patches of dark-green diopside. Pyrrhotite and pyrite are the dominant sulphides in the calcic hornfels, generally occurring in quantities of up to 3 per cent each as blebs, disseminations and along fine fractures, with rare arsenopyrite and chalcopyrite. Sills and dykes of the Hedley Intrusions contain up to 5 per cent pyrrhotite as irregular blebs, up to 3 per cent arsenopyrite as disseminations and veins and up to 1 per cent disseminated pyrite. A chip sample taken across 0.5 metre of calcic hornfels, with 5 per cent disseminated pyrite, assayed 5.42 grams per tonne gold and 26 grams per tonne silver (Assessment Report 17085, page 16).

Between 1982 and 1986, the area covering the Lost Horse 86 showing was acquired by Montello Resources Ltd as the Lost Horse 1989 claim group. In 1986, Shangri-La Minerals Limited carried out an exploration program on behalf of Montello Resources consisting of geological mapping, soil geochemistry and ground geophysics. The claims were later optioned to Chevron Minerals Ltd in 1987. Between 1987 and 1988, Chevron Minerals carried out an exploration program consisting of geological mapping, soil geochemistry and trenching and tested the Lost Horse 86 showing with four diamond drill holes totalling 757 metres.

By 2009, the claim area had been acquired by Grant Crooker as part of his Hedley Gold Project property. In 2010, Crooker carried out stream sediment sampling, rock sampling, geological mapping and prospecting on the property. In 2011, Crooker expanded the Hedley Gold Project claim group by amalgamating his claims with those owned by Ron Schneider. The expanded property was then optioned to Westcan Uranium Corporation. That year, a 1:5,000 scale compilation map of the Chevron target area was produced using data from previous exploration programs and assessment reports. Rock geochemical sampling was also expanded in the central and northern portions of the property.