The Red Cliff property is a former producing copper and gold property located 25 miles north of Stewart,
B.C. in the Skeena Mining Division of British Columbia. It consists of 8 mineral claims.
On October 28, 2008, the Company entered into an option agreement with Mountain Boy Minerals Ltd. (“Mountain Boy”), a company with directors in common with the Company to acquire up to a 60% interest in the Red Cliff property. In order to earn the 60% interest Decade was required to incur exploration expenditures of $1,250,000 over three years.
The Company incurred all the required exploration expenditures to earn its 60% interest in the Red Cliff property and pursuant to a joint venture agreement the Red Cliff property was operated on a joint venture basis with Mountain Boy.
On October 31, 2011, the Company was informed by Mountain Boy that it could not fund its share of the Red Cliff exploration expenditures and thereby would have its interest diluted under the formula set out in the joint venture agreement. At October 31, 2011, the Company was owed $548,285 in exploration expenditures by Mountain Boy. Effective November 1, 2011, Mountain Boy agreed to dilute its interest in the Red Cliff property by 5% in lieu of paying $435,785. Decade’s interest was increased to 65% and Decade was paid $112,500 by Mountain Boy.
During the nine months ended January 31, 2018, the Company charged $690,354 in exploration expenditures to Mountain Boy. During the year ended April 30, 2017, the Company charged $169,098 in exploration expenditures to Mountain Boy.
At January 31, 2018, Mountain Boy owed the Company $425,571 (April 30, 2017: $102,787) in exploration expenditures which is included in accounts receivable.
On October 16, 2017, the Company entered into a royalty purchase agreement to acquire 65% of the 1% net smelter return (“NSR”) royalty on certain mineral claims on the Red Cliff property. In consideration, the Company paid $6,500 and committed to issue 280,000 common shares to the vendor. On November 13, 2017, the Company issued the 280,000 common shares fair valued at $0.085 per common share totalling
$23,800 and the NSR was cancelled.
Decade’s fieldwork identified premier porphyry rocks on the property. The premier porphyry rocks are associated with the mineralization of the Silbak Premier mine located eight kilometres from Red Cliff on the west side of the Bear River Ridge. The Red Cliff property is on the east side of the ridge. The Silbak-Premier mine produced over two million ounces of gold.
From June to November 2009, Decade completed a total of 5,227 metres of drilling in 36 holes on drill roads and drill pads constructed during the field season. Drilling tested the Montrose zone in three areas, namely north of the previous mining activities in Lydden Creek, in the Lydden Creek canyon just west of the previous mining activities and along the possible south extension. Drilling extended the zone well below the lowest working as well as indicating that it extends to the north from the adit in Lydden Creek. In addition, drilling intersected a wide zone of intensely silicified and pyritic rocks to the west of the Montrose zone.
Some of the drilling intersection highlights on the Montrose zone include values up to 7.5 g/t gold over 32.5 metres in DDH-2009-MON-1, 4.17 g/t gold over 48.48 metres in DDH-2009-MON-2, 7.3 g/t gold over 28.4 metres in DDH-2009-MON-3, 5.78 g/t gold over 28.17 metres in DDH-2009-MON-4, 4.75 g/t gold over
39.63 metres in DDH-2009-MON-5 and 20.87 g/t gold over 24.7 metres in DDH-2009-MON-6. This drilling indicated a zone of higher grade mineralization that would be defined in future programs. Full assay results can be found on Decade’s website.
On May 26, 2010, the Company received the necessary government permits for the 2010 exploration program on the Red Cliff property. Decade commenced a 7,000 metre drill program in accordance with recommendations included in an independent NI 43-101 report.
The program recommended drilling to extend the Montrose zone both to the south and in the area of 2009 drilling, drilling to extend the Red Cliff zone above and west of the Red Cliff underground workings, drilling below the south extension of the Montrose zone and drilling between the Montrose and Red Cliff zones to check for continuity of the zones in talus covered areas.
Drilling was conducted at the south end of the property in the area of the Red Cliff underground workings, 1.5 km from 2009 discovery holes DDH-MON-2009-1 to DDH-2009-Mon-11. The holes were drilled off a drill station that has been created at the top of cliffs approximately 100 metres west of and 200 metres above the underground workings. All holes intersected zones varying from 3 to 17.68 metres long, some of which contain chalcopyrite-pyrite-fine visible gold mineralization in quartz veins and veinlets that appear to be identical to the Montrose mineralization intersected in discovery holes DDH-2009-Mon-1 to DDH-2009- Mon-11.
Based on surface exploration conducted early in 2010, Decade believes that the Red Cliff zone initially trends northwest in the area of the workings but flexes into a north trending zone and is part of a 1.5 km zone that includes the Montrose zone to the north. Rusty outcrop exposures occur midway between the two previously explored portions of the mineralized zone are believed to be surface expressions of the gold bearing zone.
An initial drill program comprising 28 diamond drill holes was completed on the Montrose zone on the north side of Lydden Creek. The drill holes were on 5 different panels testing south of and beneath the area of drilling in 2009. Most of drilling was from pads 60 metres below and 100 metres south of the 2009 drill pads. The 2010-UMon-1 to 4 holes were collared 20 metres south of DDH-2009-Mon-5 and 6 and tested south of these holes.
The interval in DDH-UMon-2010-1 is 2.18 g/t gold if the 0.3 interval of 2847 g/t gold is excluded. The results of DDH-2010-UMon-1 confirm the high grade nature of the structure in the area of DDH-2009-Mon- 5 and 6. DDH-2009-Mon-6 intersected 24.7 metres grading 20.87 grams per tonne gold with 2.13 metres averaging 142.2 grams /tonne gold. The intersections are believed to represent 70% of true width.
A second drill program comprising 18 diamond drill holes was completed and this drilling explored the area of DDH-2010-MON-1 which returned 49.2 grams per tonne gold over 18.45 metres, 28.4 metres of 7.3 grams per tonne gold in DDH-MON-2009-3 and 24.7 metres grading 20.87 grams per tonne gold in DDH-MON- 2009-6. This drilling expanded the area of high grade gold mineralization south, north and to depth and provided information that will allow the joint venture partners to make a decision on underground exploration.
Full assay results for the 2010 drilling program and pictures of the intersected mineralization can be viewed on the Company’s website.
The Company’s modeling indicates there are two different gold bearing zones rather than a single zone along the north side of Lydden Creek, as first thought. In addition, it has been determined that the upper Montrose Zone strikes southwest-northeast, dipping at shallow angles to the northwest, not striking to the northwest and dipping to the east as earlier interpreted. Indications are that several of the holes drilled in 2010 at Red Cliff were drilled parallel to or beneath the zone due to this early misinterpretation. Two plan maps outlining the previous and recent interpretations of the Montrose Zone have been added to the Company’s website.
Previous modeling work indicates that a 2007 drill hole completed 200 metres south of the present drilling is the extension of Upper Montrose zone. This hole intersected 12.8 metres of 2.75 g/t gold with a 3.05 m section assaying 9.22 g/t gold. This indicates that the Upper Montrose is at least 400 metres in strike length.
A total of 44 drill holes were completed on the Upper Montrose Zone during the 2011 exploration season to intersect below and southwest of DDH-MON-2009-1-6 and below the furthest southwest holes completed in the 2010 drilling. A photo showing the direction and location of 2010 drilling as well as the recent 2011 work is shown on the Company’s website.
The Company has now received all of the assay results from the 2011 drill program completed on the Upper Montrose zone. The majority of the results show a continuation of high gold values. The results of the 2011 drilling program confirm that the zone does trend southwest-northeast and dips to the northwest. Detailed assay results are available on the Company’s website.
Based on the 2011 drilling, the Upper Montrose zone is open along strike and down dip. The 2011 drilling has extended the Upper Montrose 100 metres to the south of previous drilling. DDH-MON-11-11 extends the mineralization 75 metres southwest of previously completed drilling, for a total strike length now exceeding 500 metres.
The 2011 field season extended the gold bearing zone 500 metres along strike and 250 metres of depth. It remains open in all directions. The 2011 drilling has greatly aided in defining the strike and dip of the Upper Montrose zone as well as its configuration.
Modeling of the data is continuing and has been very positive to date. Using a 0.5 g/t gold cutoff the modeling has shown that the Upper Montrose zone is 20-25 metres wide (true thickness) and has a depth of at least 250 metres.
Gravimetric Assay Rechecks for Random Intervals for the 2010 – 2011 Drilling Indicates Increased Values Due to the Coarse Nature of the Gold
On September 5, 2012, the Company provided an update on recheck gravimetric assays for high grade gold sections for 2010-2011 drilling for the Red Cliff project. The re-assaying indicated several intervals that showed consistent gold values. The greatest increase came in DDH-MON-2011-27 which increased 600 %.
The 2012 Red Cliff drilling program was designed to test the Lower Montrose and Upper Montrose zones.
Exploration work in 2012 showed that the mineralization on the property consists of gold bearing zones within a 30 metre wide shear zone that has been followed for over 2 kilometres in a north-south direction along the property. Anomalous geochemical stream sediment samples to the north of present work indicate a potential for an additional kilometre of strike length. The Red Cliff copper-gold zone is present along the south end of this shear with the Chimney, Road and Waterpump zones in the middle and the Upper Montrose zone at the north end. Modeling of the Upper Montrose zone has shown that high grade gold zones occur as flat lying sections along the dip of the mineralization.
The 2012 drill program at Red Cliff was comprised of 73 drill holes and indicated the following:
- A wide zone of brecciated dyke with pyrite-minor chalcopyrite and massive hematite stringers along fractures 650 metres north of Lydden
- Surface mineralization at the Montrose Crown/Silver Crown boundary is identical to that intersected at a depth of 700 metres below
- Three holes testing this area of mineralization all intersected a wide zone of brecciation with associated pyrite, hematite and chalcopyrite within fractures along this
- The presence of several gold bearing zones along the 30-40 metre wide shear system hosting the Upper Montrose structure. One is associated with semi-massive chalcopyrite-pyrite veins and the other is associated with a chalcopyrite-pyrite stockwork.
- A deep gold bearing zone within a chalcopyrite-pyrite stockwork containing visible gold, that is 50 metres south and 100 metres below the 2009-2011 drilling
Due to the great depth extent of mineralization and great strike extent, the Company is confident that continued drilling will outline a significant gold deposit.
On December 16, 2014, Decade announced the filing on SEDAR of a NI 43-101 report for the Red Cliff property. The National Instrument 43-101 report on the Red Cliff property prepared by Dr. Lawrence Dick, PhD, PGeo, states that a preliminary characterization of the mineralized system hosting gold at Red Cliff is as follows:
- Mineralization consists of gold-bearing zones that are hosted by a 30-metre-to-40-metre-wide, near- vertically dipping shear zone, which can be traced for over two kilometres, trending north-south, within the
- Gold-bearing mineralized zones, within the shear zone, have been intersected over a vertical distance of approximately 700
- Multiple gold-bearing mineralized zones have been identified within the wide shear
- Gold is associated with abundant chalcopyrite and pyrite, most commonly in sulphide-bearing veins within the shear, as well as gold-bearing stockwork zones outside of the vein
- Gold is associated with fine galena-sphalerite veinlets along fracture zones peripheral to the chalcopyrite-pyrite
- Gold is associated with sparse chalcopyrite, pyrite, hematite and epidote in quartz
Highlights of drilling along the 2.5 kilometre shear zone outlined to date include some of the following gold intersection results:
- 63 grams per tonne gold over 12.2 metres of core length in DDH 2009 MON-2;
- 94 grams per tonne Au over 25.91 metres of core length in DDH 2010 MON-31;
- 91 grams per tonne Au over 7.47 metres of core length in DDH 2011 MON-11;
- 53 grams per tonne Au over 30.64 metres of core length in DDH 2011 MON-27;
- 85 grams per tonne Au over 10.28 metres of core length in DDH 2011 MON-29;
- 32 grams per tonne Au over 8.32 metres of core length in DDH 2011 MON-37;
- 51 grams per tonne Au over 4.27 metres of core length in DDH 2012 MON-03;
- 88 grams per tonne Au over 14.02 metres of core length in DDH 2012 MON-24 Complete results can be viewed in the NI 43-101 report on SEDAR.
On March 8, 2016, the Company announced that it had commenced geochemical sampling to establish continuity along the shear zone, particularly south of the exposed Waterpump zone. The Waterpump zone, which is on the south side of the Lydden Creek canyon, is about 100 metres southeast of the Montrose zone, which is on the north side of the canyon. The Montrose zone has been extensively drilled between 2009 and 2013, but the Waterpump zone has seen limited exploration.
On May 24, 2016, the Company reported that it had completed the first phase of surface geochemical and rock sampling in areas that were exposed by melting snow. The first phase of surface geochemical sampling returned high gold in panned silt samples assaying up to 263.81 grams per tonne. Sampling consisted of gathering approximately 25 kilograms of creek material from three creeks that was screened to a 20-mesh size and then panned with the heavy portion analyzed for gold.
On September 20, 2016, the Company reported that the 2016 drill program had commenced to test the Waterpump zone.
The only description of the Waterpump zone that the Company has is from a 1988 assessment report (17465) filed with the Ministry of Mines. In this report, the description is based on sampling on a cliff face 30 metres above the Lydden Creek canyon floor. The description states:
- Adjacent to a two-to-three-metre-wide diorite dike which appears to be the locus for the mineralization, the alteration and mineralization become most intense.
- Outward from this dike, the alteration can be traced for roughly 10 metres, where it is accompanied by one to three finely disseminated
- Immediately adjacent to the dike, the mineralization takes the form of a stock-work of crosscutting quartz pyrite veins one to three centimetres wide, which constitutes in places up to 20 of the rock.
- Within these veins, the pyrite is predominately coarse grained and is accompanied by minor amounts of
On March 16, 2017, the Company announced that it had received the ICP results from the 2016 drill program on the Red Cliff property. Drilling during 2016 was intended to intersect the Waterpump zone, located through previous work, at surface in the 100 to 200 metre deep Lydden Creek canyon and one historic drill hole completed in 1988. Exact locations of this historic work were not available to the Company and drill pads were located approximately 200 metres higher in elevation and west of the reported showings in Lydden Creek. Drilling intersected wide zones of silicified, pyritic rocks with minor chalcopyrite in 10 of the drill holes completed. Low gold values were obtained from the intersected zone. Upon comparing the previous ICP results from the Montrose zone (Waterpump-south extension) with the 2016 results, it appears that the drilling intersected the Waterloo zone.
Results from 2009-2012 drill programs on the north side of Lydden Creek indicate that the Waterloo zone consists of an epidote altered, silicified and pyritic zone carrying chalcopyrite but low gold values. It is up to 50 metres wide occurring along the west side of the Montrose zone. The lack of elevated lead, zinc and silver plus the presence of epidote indicate the intersection of the Waterloo zone. The Montrose zone is distinctive in that it contains elevated zinc, lead and silver along with gold.
Decade has conducted metallurgical testing on core from the Montrose zone. The drill hole selected is DDH- 2012-61 which contains two different styles of gold-bearing mineralization. The total width of the drill intersection is 35.06 metres of 7.8 grams g/t gold, 9.04 g/t silver, 0.42% copper, 0.097% lead and 0.29% zinc at 173.93 to 208.99 metres. The hole was drilled at minus 75 degrees and the Company believes that the zone was approximately 15 metres in true width. Within the intersection, there is a zinc-rich portion carrying fine visible gold and a deeper copper-rich section with coarse visible gold. Testing included gravity and flotation methods for recovery of gold and other metals.
Samples were from cut core and included the interval from 173.93 to 190.24 metres (Red Cliff 1) and 200 to
- metres (Red Cliff 2). Within the intervals, gold is associated with sphalerite-galena stringers as well a separate pyrite-chalcopyrite stockwork. A summary of the work by SGS Minerals Ltd. is quoted
“Gravity tests were conducted on the two composites by passing the ground pulp to a Knelson concentrator followed by Mozley table upgrading. The composites responded well to gravity concentration and 54.2% and 78.2% of gold on average were recovered into gravity concentrate at 447 g/t Au and 1618 g/t Au grade respectively for Red Cliff 1 and Red Cliff 2.”
“Batch cleaner flotation tests were performed on whole ore from the two composites to produce a Cu-Pb bulk concentrate and a zinc cleaner concentrate. The composites responded well to conventional flotation. For Red Cliff 1, the Cu/Pb bulk cleaner concentrate assayed 25.8% Cu, 7.86% Pb, 4.12% Zn and 323 g/t Au at recoveries of 88.1% copper, 79.2% lead and 81.7% gold. For Red Cliff 2, the concentrate assayed 25.7% Cu, 6.98% Pb, 3% Zn and 256 g/t Au at recoveries of 93.1% copper, 67.1% lead and 76.0% gold. The results were achieved from batch cleaner tests and the recoveries will be higher when locked cycle flotation tests are conducted. Optimization is needed to improve zinc flotation for both composites.”
“Pre-concentration and flotation tests were performed on the two composites and very good results were obtained. The copper grades were 25.2-25.4% at recoveries of 80.8-81.9%. The lead grades in the bulk cleaner concentrates were 6.95-8.58% at recoveries of 66.6-71.5%. The combined Pb recoveries (gravity + flotation) were 76% and 83.1% respectively for Red Cliff 1 and Red Cliff 2. Gold recoveries were high for the two composites and the total gold recoveries (gravity + Cu-Pb Conc) were 90.4% and 96.4% respectively for Red Cliff 1 and Red Cliff 2. The zinc rougher tailings were subjected to cyanidation and additional 4.4% and 1.2% of gold were leached out. The overall gold recoveries were 94.8% and 97.6%, respectively for Red Cliff 1 and Red Cliff 2.”
Decade’s 2017 drill program is continuing on the Red Cliff property. To date, 5 holes were completed on the Red Cliff zone and 35 holes were completed on the Montrose zone, approximately 1.2 kilometres to the north.
- Indication of multiple gold-bearing sections within the Montrose zone;
- Extension of the Montrose to depth and along strike;
- Intersection of 19.9 grams per tonne gold over 4.12 metres at 311 m depth in DDH-17-M0N-5;
- Intersection of 14.93 grams per tonne gold over 8.38 metres in DDH-17-M0N-18;
- Intersection of 9.5 grams per tonne gold over 10.98 metres in DDH-17-M0N-27.
- Chip sampling of 19.2 g/t gold over four m on the Waterpump zone;
- Chip sampling of 390 g/t gold over five m on the Lower Montrose
- Numerous gold-bearing zones within the Montrose structure in DDH-2017-7;
- Intersection of 14.6 grams per tonne gold over 2.20 metres in DDH-17-MON-8;
- Intersection of 13.9 g/t over 2.04 m in DDH-17-MON-31;
- Intersection of 13.7 g/t over 3.05 m in DDH-17-MON-31;
- Intersection of 13.88 grams per tonne gold over 7.5 m in DDH-17-MON-38;
- Intersection of 10.41 g/t gold over 22.87 m in DDH-17-MON-40;
- Intersection of 7.21 g/t gold over 7.16 m in DDH-17-MON-41 During the 2017 program, exploration was aimed at the following:
- Testing for depth extent of gold mineralization below previous drilling on the Montrose zone;
- Extending the copper-gold mineralization at the Red Cliff zone;
- Completing the surface geological mapping;
- Locating and sampling the Waterpump zone;
- Locating additional mineralization in the area of drilling;
- Sampling previous drill holes from 2007 to 2016 that had weakly mineralized
The drill has been moved from the north side of Lydden Creek and 8 to 10 holes will be completed on the Waterpump zone. In addition, a surveyor is creating a database with GPS (global positioning system) locations for all holes as well as the elevations. These data, in conjunction with all the drill hole assays, will be used to create a new model that shows gold grade shells. The Company will also use the existing data from 2007 to 2012 and 2017 to prepare a preliminary resource calculation that has never been done for the Montrose zone.
On September 8, 2017, the Company was granted the option to acquire an 80% interest in the Red Cliff Extension Property. The property is subject to a 2% net smelter return royalty which may be reduced to 1% at any time after one year of commercial production for a payment of $1,000,000.
*Click on map to view full size
Based on the modeling of the Upper Montrose, the zone is open in all directions and strikes north-south. It has a true width of approximately 22 m and extends at least 200 m along dip. This work has shown that drilling in 2009 to the north was too far west to intersect the zone. The drilling to the south does not have a close enough spacing that would allow modeling at present. Drilling in 2012 will provide further information that will allow for modeling of data in this south area. Based on historical drilling from the 1987 period, the Upper Montrose zone extends at least 200 m south of the present modeling. Based on historical surface exploration, the Upper Montrose zone extends for at least another 300 and possibly 400 m to the north of the modeled data.
The Lower Montrose is a separate zone exposed in the Lydden Creek canyon. It is an east-west zone that is up to 10 m wide exposed over 25 m of height in the canyon. Recent drilling indicates that it extends al least 100 m below the canyon floor.
The Waterpump zone is up to 12 m wide and is exposed 100 m east of the Lower Montrose. It is separate from the Upper and Lower Montrose zones. It strikes in a north-south direction.