The Carlos occurrence is located near a south-flowing tributary of Two Lake Creek, approximately 161 kilometres northwest of the community of Germansen Landing.

The regional geology is similar to that of the Sustut deposit (094D 063) located 8.3 kilometres east.

The area occurs within a large fault block which is composed of rocks assigned to the Lower Jurassic Telkwa Formation (Hazelton Group). The rocks within the claim group are predominantly vari-coloured tuffs with lesser maroon to purple agglomerates, andesitic dikes and amygdaloidal andesitic flows. Most of the major faults trend north; subsidiary faults and shears trend northwest. Many of the shears and faults are occupied by andesitic dikes ranging from ten's of centimetres to 10 metres in thickness. The major structures exhibit chlorite and epidote alteration over a couple of metres.

Numerous small showings and malachite stains are found in small patches related to the faults and andesite dikes. The faults typically carry chalcocite and lesser bornite, as discrete grains, in parallel veins of calcite and epidote. Copper minerals are found finely disseminated along chloritic shear zones up to 2 metres in width.

Amygdules in the andesitic flows are locally filled with quartz, calcite, epidote, chlorite, sericite, chalcocite and native copper (Assessment Report 4710).

In 1973, a wide shear zone assayed 0.86 per cent copper and 17.14 grams per tonne silver over 1.53 metres. A grab sample from one of the larger copper mineralized amygdules assayed 1.98 per cent copper (Assessment Report 4710).

In 1973, Dorita Silver Mines Ltd. optioned 142 claims in the Sustut Peak area on the basis of their geological environment and proximity to a recently discovered significant copper deposit (Sustut Copper, 094D 063) in that area. Reconnaissance geological mapping, prospecting and geochemical (526 samples) surveys were carried out.