The Kaouk occurrence is located on the north side of Kaouk River, approximately 11 kilometres west-northwest of the river mouth.
The area between Kaouk and Artlish Rivers is underlain by Jurassic granodiorite of the Island Plutonic Suite. Lower Jurassic Bonanza Group volcanics and sediments lie to the west and north (Geological Survey of Canada Map 4-1974).
A property examination (Property File - H. Veerman) indicates a northwest trending belt of Quatsino(?) limestone extending between the two rivers, possibly as a roof pendant within the intrusive rocks. The examination indicates pods of magnetite mineralization in the location given.