The Penny occurrence is located south west of Waukwaas Creek, approximately 6.5 kilometres south east of the creek mouth on Rupert Inlet.

The region is underlain by northwest trending Upper Triassic volcanics and sediments of the Vancouver Group (Karmutsen, Quatsino and Parson Bay formations) and Lower Jurassic Bonanza Group volcanics and sediments. These rocks have been intruded by stocks of the Jurassic Island Intrusions.

Locally, andesitic tuffs and flows of the Bonanza Group are mineralized with disseminated chalcopyrite and lesser bornite. Alteration where present consists mainly of chlorite and epidote. Chalcopyrite is also present in quartz stringers and amygdules.

In 1968 and 1970, Copper Giant Mining completed programs of soil sampling and geological mapping and a ground magnetometer survey on the area as the Penny claims.