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

The Rae Creek bog iron showing, 1.8 kilometres east-southeast of Palisade Bluff, consists of two elongate patches of limonite occurring along a small tributary on the north side of Rae Creek. The limonite ranges up to 60 centimetres thick and is much contaminated by pieces of talus and rock debris. Another elliptical patch of limonite, 60 centimetres thick, occurs 300 metres down the Rae valley. The iron was probably leached from silicified pyritic tuffs of the Upper Cretaceous Powell Creek Formation which outcrop along the ridges north and east of the showing.

A minimum estimate of inferred reserves are 9800 tonnes grading 49 per cent iron (Geological Survey of Canada Summary Report 1920A, pages 42A-70A).