Residual iron oxide deposits are common in the Taseko River region of southwestern Chilcotin where conditions are suitable for the development of these deposits, i.e. a source of iron (usually pyritic sediments and volcanics) and relatively stable depositional conditions.

The Denain Creek bog iron showing, 3.7 kilometres west-southwest of Mount Warner, consists of four separate patches of limonite overlying till on the southwest side of Denain Creek. The limonite ranges up to 60 centimetres thick in the larger patches, and locally includes much angular rock debris. The iron was probably leached from altered pyritic tuffs of the Upper Cretaceous Powell Creek Formation which outcrop on Wilson Ridge to the west. An inferred reserve of 20,000 tonnes grading 47 per cent was estimated (Geological Survey of Canada Summary Report 1920A).