The Mercury 2 occurrence is located near the Tutizika River, approximately 7 kilometres southwest of its confluence with the Mesilinka River, 94 kilometres northwest of the community of Germansen Landing.

Cinnabar reportedly occurs (Geological Survey of Canada Memoir 274, page 203) in carbonatized fault zones which are part of, or are related to, major northwest trending block faults which have displaced all the rock units in the area. Hostrocks are thought to be sediments (volcaniclastic rocks) of the Permian Lay Range assemblage (Open File 1993-2).

In 1987, on behalf of Skylark Resources Ltd., geological mapping, prospecting, silt (4), soil (125) and rock chip (19) sampling was carried out on the Dolly 1, 2 claims which cover the Zip (094C 142), Stranger (094C 015), Mercury 1 (094C 041) and Mercury 2 showings.