The Lake 2 occurrence is located 1.8 kilometres northeast of Contact Peak and 3 kilometres east of Midas Lake, about 310 kilometres north of the community of Smithers. It lies within the Omineca-Cassiar mountains in the north-central part of the Toodoggone gold camp.

The showing is situated within a Mesozoic volcanic arc assemblage which lies along the eastern margin of the Intermontane Belt, a northwest-trending belt of Paleozoic to Tertiary sediments, volcanics and intrusions bounded to the east by the Omineca Belt and to the west and southwest by the Sustut and Bowser basins.

Devonian-Permian Asitka Group crystalline limestones are the oldest rocks exposed in the region. They are commonly in thrust contact with Upper Triassic Stuhini Group andesite flows and pyroclastic rocks. These Stuhini rocks have been intruded by plutons and other bodies of the mainly granodiorite to quartz monzonite Early Jurassic Black Lake Suite and are in turn unconformably overlain by or faulted against Lower Jurassic calcalkaline volcanics of the Toodoggone Formation (Hazelton Group).

The dominant structures in the area are steeply dipping faults which define a prominent regional northwest structural fabric trending 140 to 170 degrees. In turn, high angle, northeast-striking faults (approximately 060 degrees) appear to truncate and displace northwest-striking faults. Collectively these faults form a boundary for variably rotated and tilted blocks underlain by monoclinal strata.

The Stuhini Group surrounding the Lake 2 showing consists of intermediate to basic flows, pyroclastics and sediments. A series of limy beds, interbedded with laminated tuffaceous mudstone, tuffs, cherts and rhyolites strike northwesterly over a distance of 3.5 kilometres. These rocks are intruded by a medium grained, porphyritic biotite granodiorite to quartz diorite stock. A major fault structure trends north along the Upper Belle and Midas lakes valley (Assessment Report 20087). To the west of this fault lie undifferentiated volcanics of the Lower-Middle Jurassic Toodoggone Formation (Hazelton Group). To the north, an east-trending fault also separates Stuhini Group volcanics from undifferentiated Toodoggone Formation volcanics (Assessment Report 20087).

The emplacement of the biotite granodiorite to quartz diorite stock in the vicinity the showing has resulted in the development of abundant stratabound skarn mineralization over 40 metre widths within favorable limy horizons of the Stuhini Group volcanics. Mineralization within these skarns consists of pyrite, pyrrhotite, sphalerite, chalcopyrite and arsenopyrite (Assessment Report 15068).

In 1985, two chip samples of mineralized skarn yielded 1.3 and 2.5 per cent zinc with 2.2 and 1.1 grams per tonne silver over 5.7 and 5.0 metres, respectively, while grab samples from the area yielded up to 4.6 per cent zinc, 4.3 grams per tonne silver and 0.10 gram per tonne gold (Assessment Report 14935).

Rock chip sample LC85-425, taken from the south-facing slope of a cirque 1.8 kilometres northeast of Contact Peak, analyzed 8.9 grams per tonne silver and 0.03 per cent zinc; this sample was described as feldspar porphyry (Assessment Report 15068). No significant mineralization was reported for this sample and it is not known whether it is skarn-type mineralization as is described occurring elsewhere in assessment reports.

During 1977, Cominco limited discovered stratabound base metal sulphides north of Contact Peak. This mineralization was later covered by Lake I and Lake II claims.

In 1985, a soil geochemical survey was carried out on the Lake I-IV, Oro I and II and URSUS I-IV claims by Toodoggone Syndicate. Only the Lake II and IV had work done on them. Soil sampling and prospecting resulted in the collection of 188 soils, 8 silts and 29 rock samples. In 1986, reconnaissance work by D.L. Cooke on the Lake claims indicated that the greater portion of the Lake I to Lake IV claims (which lie on and east of Midas Lake) are underlain by intermediate to basic flows and pyroclastics of the Stuhini Group. In 1986, an airborne magnetometer and VLF-electromagnetic survey was flown across the Lake I-IV claims on behalf of PMA Technologies Inc. Some 265 line-kilometres of data have been examined to evaluate the area for base and precious metal mineralization.

The 1989 work program of PMA Resources on its Lake claims was carried out in the area surrounding Belle and Midas lakes. This area had been relatively unexplored due to the ruggedness of the terrain. Reconnaissance work included: mapping at a scale of 1:500, rock sampling, geochemical sampling, pan concentrates, and silt sampling. Silt sampling was done on numerous creeks in the drainage. No anomalous values resulted from the seven samples taken. Two pan concentrates did not yield anything of significance; 18 rock and float samples also did not yield anything of significance.

In 2006, A. Birkeland collected several samples on his Peak, Midas and JL claims which covered the Lake 2 showing and Ursus 4 showing (094E 018) area. However, most of the sampling occurred well to the east of the Lake 2 showing and about 1 kilometre east and south of the Ursus 4 showing.