Madison's Mt. Kare resource increase
Madison Enterprises Corp MNP
Shares issued 22,962,569 Feb 9 close
$0.83 Thu 10 Feb 2000 News Release Mr.
Chet Idziszek reports Mt. Kare Contained ounces increase by 20 per cent;
tonnage increases by 27 per cent -- The resource estimate update by
Watts, Griffis & McOuat estimates 2.24 million ounces in 25.5 million
tonnes, up from 1.87 million ounces in 20.1 million tonnes estimated
in the previous Mt. Kare resource estimate from November, 1998 (using a
one gram per tonne Au equivalent cutoff and with the cutting of
high-grade Au assays to 30 grams per tonne). Tonnage of indicated
resources increase by 37 per cent, a very significant increase in the
confidence level of the reosurce -- Infill drilling completed on the
known deposits during the last phase of drilling confirms excellent
continuity and consistent grade of individual zones and that the known
zones all merge together at depth. Metallurgical testing returns positive
results -- Completion of the initial phase of metallurgical testing
confirms gold recoveries of 90 to 95.5 per cent from Mt. Kare
mineralization. Madison has released an update to the initial resource
estimate for the Mt. Kare gold exploration project in Papua New Guinea in
which Madison holds a 90-per-cent interest, along with further
metallurgical results for the project. The objective of Madison's
1999 exploration program at Mt. Kare was twofold, firstly, to
fill in the gaps in WGM's November 1998 resource estimate for the Mt.
Kare deposit using 3-D block modelling. The update includes the
results of all drilling completed to date at Mt. Kare, including the
216 holes drilled by Madison. WGM estimate a 20-per-cent increase in
contained ounces to 2.24 million ounces up from 1.87 million ounces
estimated in the previous Mt. Kare resource estimate from November, 1998,
and a 27-per-cent increase in tonnage to 25.5 million tonnes up from 20.1
million tonnes (using a one gram per tonne equivalent Au cutoff and
with the cutting of high-grade Au assays to 30 grams per tonne).
A comparison between the November, 1998, resource estimate and the
current update is shown on the attached schedule. Madison's last round of
drilling confirmed the excellent continuity and consistent grade of
individual zones and that the known zones all merge together at depth.
The known zones of mineralization which are included in the current
resource all start at surface and the majority of the
mineralization included in the resource occurs within 100 to 150 metres
of surface. While infill drilling has diminished the influence of some of
the earlier high-grade holes, the calculation of the contained gold
equivalent without the cutting of high-grade assays to 30 grams per
tonne still results in a substantial increase in the contained gold
equivalent from the number of contained ounces calculated with grade
cutting to 30 grams per tonne. Madison believes that this is a
result of the influence of high-grade intersections which represent
distinct bodies of high-grade quartz-roscoelite-gold mineralization.
Madison has also released very favourable results from
metallurgical testing carried out on its behalf by the Project
Development Division Research Centre of Placer Dome Inc. on nine
representative drill core samples (totalling 675 kilograms of drill
core) from the Mt. Kare deposit. Overall gold recoveries from a simple
baseline circuit consisting gravity concentration and CIL
cyanidcation averaged 67 per cent (which is higher than expected), while
a more comprehensive circuit, consisting of flotation, pressure
oxidation and CIL cyanidation of oxidized ore and flotation tailings,
resulted in excellent overall gold recoveries of between 90 per cent
and 95.5 per cent. The mineralization at Mt. Kare remains open to
expansion in all directions and future drilling will focus on
outlining the limits of the known mineralized zones as well as
exploration drilling on the six highest priority targets in the
Black zone north/Realgar, Black zone south, Middle Maratani, Pinuni Creek,
Orosa and C9 zone areas. On Feb. 3, Madison arranged a brokered
private placement to raise $5.6-million to be used for drill testing these
high-priority targets at Mt. Kare.
Mt. Kare Project
Update to Mt. Kare Resource Estimate
by Watts, Griffis & McOuat
Resource classification
-----------------------
Resource with Au grade cut to 30 g/t
Millions Au Ag Au equiv.
of Tonnes (g/t) (g/t) (g/t)
--------- ----- ----- ---------
1 g/t cutoff grade
Indicated resource
14.68 2.36 33.7 2.98
Inferred resource
10.85 1.98 22.7 2.40
Total of indicated and
inferred resources
25.53 2.20 29.0 2.73
1.5 g/t Au cutoff grade
Indicated resource
10.10 3.00 42.6 3.78
Inferred resource
6.40 2.70 29.3 3.23
Total of indicated and
inferred resources
16.50 2.88 37.5 3.57
Based on WGM's estimate of the resources in the area drilled to
date, Madison estimates that the Mt. Kare deposit has the following
contained ounces of gold equivalent.
Mt. Kare Project
Estimate of Contained Gold Equivalent
Cutoff Grade:
-------------
1.0 g/t Au equiv. cutoff
With high-grade Au assays cut to 30 g/t**:
2.24 million ounces (69.7 million g)
W/out cutting of high-grade Au assays:
3.35 million ounces (104.2 million g)
Cutoff Grade:
-------------
1.5 g/t Au equiv. cutoff
With high-grade Au assays cut to 30 g/t**:
1.89 million ounces (58.8 million g)
W/out cutting of high-grade Au assays:
2.99 million ounces (93.0 million g)
** Total of indicated and
inferred resources |
