The Gus No. 1 prospect is by the road on the north side of Lardeau Creek, approximately 2.5 kilometres west of Ferguson Creek. It is at approximately 1000 metres elevation on the slope below the old Rattler (L.7048) crown grant, west of Six-Mile Creek. Moly Gold Resources Limited drilled a single diamond drill hole there in 1984.

The Trout Lake area is underlain by a thick succession of sedimentary and volcanic rocks of the Badshot Formation and Lardeau Group near the northern end of the Kootenay arc, an arcuate, north to northwest trending belt of Paleozoic and Mesozoic strata that is now classified as a distinct, pericratonic, terrane. The arc rocks are bordered by Precambrian quartzite in the east and they young to the west, where they are bounded by Jurassic-age intrusive complexes. They were deformed during the Antler orogeny in Devonian-Mississippian time and were refolded and faulted during the Columbian orogeny, in the Middle Jurassic. A large panel, the "Selkirk allochthon", was later offset to the northeast by dip-slip motion along the Columbia River Fault.

The Badshot Formation is composed of a thick Cambrian limestone that is a distinctive marker horizon in the Trout Lake area. It is underlain by Hamill Group quartzite and it is overlain by a younger assemblage of limestone, calcareous, graphitic and siliceous argillite and siltstone, sandstone, quartzite and conglomerate, and also mafic volcanic flows, tuffs and breccias, all of which belong to the Lardeau Group. The rocks are isoclinally folded and intensely deformed, but only weakly metamorphosed. They occur as intercalated beds of marble, quartzite and grey, green and black phyllite and schist. Fyles and Eastwood (EMPR BULL 45) subdivided the group into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) are restricted to the Trout Lake area. The Jowett is a mafic volcanic unit.

The geology of the area is poorly defined. However, it is underlain by folded and deformed phyllites and schists of the Lardeau Group. In 1984, Moly Gold Resources Limited drilled a single diamond drill hole to test for mineralization reported in a nearby, caved adit. The hole returned intersections of siliceous phyllite and meta-argillite containing numerous barren quartz veinlets and sweats with 1-2 percent pyrite, and a 0.06 metre wide zone containing semi-massive pyrite, galena and sphalerite. The mineralized section assayed 10.59 grams per tonne gold, 103 grams per tonne silver, 1.58 per cent lead and 1.98 per cent zinc over 1.83 metres. The adit was in the eastern part of the Gus #1 claim, and may have been on the old Bell Boy (L.7442) claim. It had been driven to the north into the hill.