The Groundhog vein is located on the west shore of Granby Peninsula on Observatory Inlet, about 6 kilometres south of Anyox. The location is reported to be 107 metres above the high water mark on the south side near the head of Granby Bay.

The region is underlain by a roof pendant, consisting of volcanic and sedimentary rocks, within the Eocene Coast Plutonic Complex. These rocks have been correlated with the Middle-Upper Jurassic Hazelton Group and the Middle Jurassic Bowser Lake Group. The volcanics consist of variably chloritized pillow and massive basalt with minor mafic tuffs. The overlying sediments consist of argillite, siltstone and sandstone with minor chert and limestone. There are two observable phases of folding in the area, an initial north-northeast trending phase followed by a later east-northeast trending phase.

The Groundhog occurrence consists of a 2 to 2.4 metre wide quartz vein hosted in argillite. The vein has been traced for 100 metres, strikes 040 degrees and dips 57 degrees southeast. A lamprophyre dike of similar orientation occurs within a few metres of the hangingwall of the vein. A streak of galena, sphalerite and pyrite, 25 to 40 centimetres wide, occurs in the footwall. This mineralization is reported to assay 5.48 grams per tonne gold, 17.65 grams per tonne silver and 32.5 per cent lead, and a sample across the width of the vein over 2.4 metres contained 4.8 grams per tonne gold and 82.3 grams per tonne silver (Minister of Mines Annual Report 1913, page 84).

Currently, a 100 metre long, 4 metre wide opencut is developed along the vein as a result of work that was unreported or included with the nearby Golskeish Quartz vein (103P 027) (D. Alldrick, personal communication, 1989).