The Cap Sheaf occurrence area is underlain by massive basalt of the Upper Triassic Karmutsen Formation (Vancouver Group) and locally interbedded limestone lenses intruded by diorite.

A massive magnetite lens is developed in a garnet-epidote skarn in the basalt and limestone near the contact with intrusive rock. The skarn as well as the basalt contains veinlets of calcite and quartz throughout. The magnetite lens hosts disseminations and blebs of pyrite and chalcopyrite. Grab samples of dump material around a shaft that was sunk on the lens assayed up to 4.6 per cent copper, 18.51 grams per tonne gold and 17.14 grams per tonne silver (Assessment Report 5749).

Seven hundred metres to the northwest from the Cap Sheaf shaft, grab samples from a showing on the Milner claim (Lot 77) assayed 4 to 16 per cent lead, 5 to 15 per cent zinc, 0.68 to 1.37 grams per tonne gold and 171.4 to 445.64 grams per tonne silver (Assessment 5749).

CanQuest Resource Corporation conducted geological, geochemical and geophysical surveys from 1990 to 1995 on the Magnolia property.