The Dragon occurrence is located 6 kilometres northeast of Toby Creek in the Golden Mining Division. The occurrence is situated on the northern side of a small unnamed tributary of Toby Creek at an elevation of 1646 metres above sea level.

Regionally, the area is underlain by Proterozoic clastic sedimentary rocks of the Purcell and Windermere supergroups and by lower Paleozoic strata of the Beaverfoot and Mount Forster formations (Geoscience Map 1995-1).

The Purcell Supergroup strata include the Aldridge, Creston, Kitchener, Dutch Creek and Mount Nelson formations. The Windermere Supergroup unconformably overlies the Purcell Supergroup rocks and includes the Toby Formation and Horsethief Creek Group (Paper 1990-1).

In the vicinity of the occurrence, rocks of the Kitchener and Dutch Creek formations have been further subdivided and assigned to the Van Creek and Gateway formations. The Van Creek Formation correlates with the Lower Kitchener Formation while the Gateway Formation is equivalent to the lower portion of the Dutch Creek Formation. The Mount Nelson Formation has been subdivided into seven discrete members, a lower quartzite, a lower dolomite, a middle dolomite, a purple dolomite, an upper middle dolomite, an upper quartzite, and an upper dolomite (Open File 1990-26).

Rocks of the Horsethief Creek Group, Beaverfoot and Mount Forster formations are folded and overthrusted by rocks of the upper portion of the Dutch Creek Formation and the lower members of the Mount Nelson Formation. The sedimentary rocks have undergone regional metamorphism to at least greenschist facies.

The Dragon prospect was explored with a 12 metre long adit in 1924 and by four drillholes in 1965 (Minister of Mines Annual Reports 1924 and 1965). The occurrence consists of a quartz vein 1.2 to 1.5 metres wide containing disseminated pyrite and chalcopyrite concentrated in erratic pockets the entire length of the adit. The vein is hosted in argillite of the Gateway Formation. A grab sample from a mineralized section of the vein assayed 13.36 per cent copper and 15 grams per tonne silver (Minister of Mines Annual Report 1924).