Residual iron oxide deposits are common in the Taseko River region of the southwestern Chilcotin where conditions are suitable for the development of these deposits, i.e. a source of iron (i.e. usually pyritic sediments and volcanics) and relatively stable depositional conditions.

The Limonite bog iron showing, 3 kilometres north-northeast of Mount McClure, consists of a strip of limonite, of varying width and orientation, that stretches from 1950 metres to 1675 metres elevation between Honduras and McClure creeks. The limonite is estimated to range up to 3 metres in thickness. The iron was leached from silicified pyritic tuffs, probably of the informally named Upper Cretaceous Powell Creek Formation, which outcrop upslope to the south. It was transported downhill as sulphate solutions and deposited as bog iron near the break in slope. An inferred ore reserve of 348,000 tonnes was estimated, grading 50 per cent iron (Geological Survey of Canada Summary Report 1920A).