The Little Lake occurrence is located on a south facing slope between the Power and Ououkinsh rivers

The area is underlain by vertically dipping, northwest striking medium to thickly bedded basalt, rhyolite, andesite, andesite breccia, agglomerate and argillite of the Lower Jurassic Bonanza Group. The Bonanza Group rocks have been intruded by an 0.8 kilometre wide apophysis of diorite to quartz diorite stock located 1.6 kilometres to the southeast. The diorite is in turn intruded by diabase and quartz-porphyry dikes, possibly related to the quartz- monzonite porphyry stock at the head of Ououkinsh Inlet. These intrusives are part of the Early to Middle Jurassic Island Plutonic Suite.

The occurrence is a contact metasomatic magnetite-pyrite deposit where the sulphides have replaced volcanic flows and related pyroclastic and sedimentary rocks of the Bonanza Group. Magnetite mineralization is localized in fault zones and adjacent fractured or permeable beds, and limited by flat-lying or east dipping diorite dikes. Propylitic, chlorite and skarn alteration are common.

In 1974, sampling of 28 trenches on the South Grid area gave an un-weighted average of 47.82 per cent total iron, 1.113 per cent sulphur and 0.027 per cent copper over an average width of 3.6 metres (Assessment Report 5375, page 16).

In 1961, Rio Tinto completed a program of geological mapping and a ground magnetometer survey on the area as the Little Lake claims. In 1974, Texada Mines completed a program of rock sampling, geological mapping, trenching and a ground magnetometer survey on the area as the Lit 1-56 claims. In 1978, Geo-Lon Ventures acquired the property and completed a diamond drilling program of 8 holes, totalling 135.7 metres.