The Watermelon occurrence is located east of Madson Creek, at an elevation of 1112 metres.

The region is underlain by mainly sedimentary rocks of the Lower Cretaceous Jackass Mountain Group, cut by several cross faults and splays of the Fraser fault. Intruding the Jackass Mountain Group are numerous dikes and small stocks of quartz feldspar porphyry.

Locally, an altered siltstone hosts a 4 centimetre wide arsenopyrite-pyrite bearing quartz vein. In 1988, a sample (1478) assayed 1.36 grams per tonne gold; while a re-sample across 1.0 metre yielded 0.735 grams per tonne gold (Assessment Report 17781).

About 10 metres to the south a stock work system of veins hosting pyrite and chalcopyrite is exposed. In 1988, a sample (1478B) assayed greater than 0.1 per cent copper (Assessment Report 17781).

In 1998, diamond drilling in the area intersected 1.22 grams per tonne gold over 0.8 metre from a depth of 40.8 to 41.6 metres in Hole M97-01 (Assessment Report 25599).

In 2007, a sample (W1) of mineralized quartz vein from a hand trench assayed 7.27 grams per tonne gold (Assessment Report 29465).

During 1983 through 1985, Utah Mines completed programs of geological mapping, geochemical sampling and an induced polarization survey on the area as the Mad claims. In 1987 and 1988, Southern Gold Resources completed programs of geological mapping and rock and soil sampling. In 1997 and 1998, First Point Capital, on the behalf of BHP Minerals, completed programs of rock, silt and soil sampling and 7 diamond drill holes, totalling 797.9 metres. In 2006 and 2007, Durfield Geological completed programs of geological mapping, geochemical sampling and an induced polarization survey.