The Lady of the Lake occurrence is located near the western shore of Loon Lake.

Regionally, the area is underlain by hornblende schists, limestone and banded quartzite of the Upper Mississippian to Permian Milford Formation and basaltic volcanic rocks of the Carboniferous to Permian Kaslo Group. Granodioritic intrusive rocks of the Middle Jurassic Nelson Batholith are exposed to the west.

Showings on the Lady of the Lake property consist of rusty siderite and quartz containing galena and sphalerite along a poorly defined vein in a limestone. The vein trends northward parallel to the formations.

A total of 9 tonnes were mined in 1895 and 1937 from which 25 500 grams of silver and 4564 kilograms of lead were recovered.

Work History

In 1890, a tunnel was driven approximately 18 metres. Further unspecified work was carried out in 1892. In 1894, Loon Lake was partially drained to aid exploration efforts. The following year, a shaft was sunk approximately 12 metres and there was minor production. In 1937, a minor quantity of ore was mined by leases.

In 1979, David Minerals Ltd. conducted a program of geochemical (stream and silt) sampling on the area as the Peanut Butter claims of the Ainsworth property. In 1989, South Kootenay Goldfields Inc., on behalf of Dragoon Resources Ltd., conducted a program of prospecting, geological mapping and rock sampling on the area as the Peanut Butter property. In 2012, David Wallach prospected and rock sampled the area as the Ainsworth property.