The Haida Gold (Blue Mule) occurrence is located on the west side of Moresby Island, approximately 1.2 kilometres north of the south arm of Kootenay Inlet. Three adits are located in the area and occur between elevations of approximately 60 and 220 metres.

The area is underlain by basaltic volcanic rocks of the Upper Triassic Karmutsen Formation (Vancouver Group). To the south, limestone, marble and undivided sedimentary rocks of the Upper Triassic Kunga Group are exposed and have been intruded by diabase and basaltic intrusive rocks of an un-named Eocene to Oligocene subvolcanic intrusion.

Locally, an east-striking, steeply south-dipping quartz-calcite vein system hosting sparse pyrite, chalcopyrite and free gold occurs in massive greenstone. The vein walls are slightly silicified and chloritized. The veins vary from 0.30 to 2.25 metres in width and have been traced over a 310-metre strike length. Another parallel vein system is reported approximately 450 metres west of the first two adits, near the third adit, with at least six veins in total being identified, referred to as the A through F veins.

In 1932, a sample from a 0.3 to 0.4-metre wide quartz vein with minor chalcopyrite exposed in the face of an opencut assayed 21.9 grams per tonne gold and 10.3 grams per tonne silver (Property File - J.T. Mandy [1932-12-03]: Annual Report - Kootenay Group).

In 1933, two sets of samples from the no.1 tunnel (C vein) assayed 4.4 and 17.1 grams per tonne gold, respectively, over 0.54 metre for the first 13.5 metres of the tunnel, whereas the average of surface sampling above the tunnel yielded 10.1 grams per tonne gold across 0.725 metre (Property File - C.C. Starr [1933-10-15]: Report of Examination of the Haida Gold Mines Ltd. Property). Also at this time, sampling of the F vein yielded up to 25.0 grams per tonne gold over 0.16 metre (Property File - C.C. Starr [1933-10-15]: Report of Examination of the Haida Gold Mines Ltd. Property).

In 1934, detailed sampling in the 85-metre long drift adit (A-1 adit) showed values varying from 0.69 to 48.7 grams per tonne gold, with an average assay value of 7.3 grams per tonne gold across a width of 0.73 metre along the length of the tunnel (Annual Report 1934; B3,B4).

In 1979, a chip sample (5437) from the upper adit assayed 53.4 grams per tonne gold over 0.23 metre, whereas a chip sample from a vein located 150 metres east of the upper adit portal assayed 24.3 grams per tonne gold over 0.45 metre (Property File - Noranda Exploration Co. Ltd. [1979-07-30]: Assays - Kootenay Inlet Property). Sampling of the lower adit, approximately 6 metres from the adit portal, yielded 3.6 grams per tonne gold over 0.6 metre (Property File - Chevron Standard Limited [1979-06-13]: Correspondence and notes - Blue Mule property (Blue claims) - Queen Charlotte gold - M-466).

In 1983, 12 samples taken from underground workings averaged 8.6 grams per tonne gold, whereas a sample of a vein and ‘iron dike’ from the A-3 adit area assayed greater than 11.3 grams per tonne gold and dump samples yielded up to 31.8 grams per tonne gold (Property File - W.D. Groves [1985-03-10]: Progress Report on 1984 C.E.E. Underwriting: Haida Gold Project).

In 1984, a drillhole (84-5) intersected 2.02 grams per tonne gold over 0.9 metre, and a second assay returned 1.7 grams per tonne gold over 1.5 metres (Assessment Report 13649). Also at this time, six chip samples averaged 15 grams per tonne gold over a 1.5-metre width along 76 metres of strike length (Northern Miner Nov. 13, 1984).

In 1987, sampling of the upper and lower adits yielded up to 24.3 and 11.5 grams per tonne gold, respectively (Property File - R.A. Lake [1987-09-16]: Geological Survey of the Kootenay Claims).

The occurrence was discovered in 1919 and three claims were staked by Jones, Wiggs and McRae. In 1921, Jones and Larson leased the property for three years. Work on the largest vein consisted of opencutting and stripping for a length of 183 to 213 metres. In 1922, a sample of several hundred pounds of ore assayed at $23.60 a ton in gold, of which $14 was recoverable free gold. By 1923, a 10-ton Ross mill with a capacity of one ton per day, had been installed. In 1930, E.C. Stevens restaked the showings as the four-claim Rupert group. Opencutting and stripping located additional parallel veins. Haida Gold Mines, Limited, incorporated in 1933, surveyed the original claims and with additional staking expanded the property to 10 claims. Work done included surface stripping and trenching, crosscutting, and underground drifting on vein C. The property was closed in October 1934 due to lack of funds. In 1936, the property was examined by Vidette Gold Mines, Limited. Work was reported to have resumed during the year.

In 1933, a possible resource of 544 tonnes averaging 7.8 grams per tonne gold over the first 25.5 metres of the no.1 (A-2) tunnel to surface was reported (Property File - C.C. Starr [1933-10-15]: Report of Examination of the Haida Gold Mines Ltd. Property).

The lower (A-1) adit is located at 60 metres elevation and continues north for 105 metres, where drifts follow the main vein in both directions for greater than 50 metres each. The second (A-2) adit, originally the no.1 adit, is located approximately 90 metres uphill and to the north of the lower adit, at an elevation of approximately 150 metres. The adit is driven north at the portal but quickly turns east and follows the main (C) vein along strike for 75 metres. The third (A-3) adit, originally the no.2, is located approximately 450 metres west of the first two adits and at an elevation of approximately 205 metres. The adit primarily explores the F vein.

In 1979, Noranda and Chevron both examined and sampled the area. In 1983, Starscope Mineral Enterprises completed a program of geochemical sampling. In 1984, Cusac Industries Ltd. completed a program of geochemical sampling, trenching and seven drillholes, totalling 457 metres, on the area. In 1987 and 1988, the area was prospected and sampled as the Kootenay claims.