The Ahbau Creek area is primarily underlain by schist. Placer gold deposits occur on bedrock and also to a large extent on false bedrock of glacial material. The Ahbau Creek deposit is located at the junction of Ahbau Creek with Murray Creek. Quartz veins are known to occur at several points in the area.

Ahbau Creek was originally worked between 1864 and 1874. Government reports estimate a recovery of nearly 1.07 million grams of gold ($500,000 in gold at $16/oz), by the crudest methods during this time (Property File Cyprus Anvil Mullett, W.S., 1961).

Lodi Mines Limited. worked a number of placer leases between Lodi and Ahbau Lakes for a distance of 6.4 kilometres, including the lower portions of Murray and Gold creeks. A camp was located below Hay Lake on Ahbau Creek. In 1960, a three-hole churn-drill program was conducted. Hole No.1 was drilled to a depth of 8.92 metres and the results were inconclusive. Hole No.2 was drilled to a depth of 8.62 metres with average values running 0.66 grams of gold per cubic metre. Hole No.3 was drilled to a depth of 6.6 metres with average values running 0.66 grams of gold per cubic metre (Property File Cyprus Anvil Mullett, W.S., 1961). Notes from 1960 by Lodi Mines Ltd. staff indicated a possible 150,000,000 cubic metres of workable material. A test bulk sample of 765 cubic metres from No.2 Bench Sand had a value of 1,372 grams of gold per tonne at Au fines of 900+ (Property File Cyprus Anvil Lodi Mines Ltd., 1960). In 1963, assays of two churn-drill cores were conducted by Coast Eldridge Engineers and Chemists for Lodi Mines Limited with returns in gold, silver and platinum. Between June 11 and August 17, 1964, Lodi Mines Limited reported assays from the Canadian Mint of 1,891 grams of gold and 328 grams of silver (Property File Cyprus Anvil Sharpes, H., 1963).

"Data from the Cariboo mining district indicate that supergene leaching of gold dispersed within massive sulphides by Tertiary deep weathering followed by Cenozoic erosion is the most likely explanation for the occurrence of coarse gold nuggets in Quaternary sediments" (Exploration in British Columbia 1989, page 147).