Mt Kare drilling and exploration results
Madison Enterprises Corp MNP
Shares issued 16,577,900 Feb 6 close $2.10
Mon 9 Feb 98 News Release
Ms Nell Dragovan reports
The company has received the results from 26 additional diamond drill holes
at its Mt Kare project in central Papua New Guinea. These holes, M-64 to
M-89, are comprised of five holes from the Central zone/Red zone margin and
21 holes distributed across approximately 1,000m strike length of the
Western Roscoelite zone.
Detailed infill drilling continues to show excellent grade and thickness
continuity within the Western Roscoelite zone. Results from step-out
drilling on the Western Roscoelite zone are encouraging, particularly the
high grade intervals reported for holes M-86 and M-77 which intersected the
upper portion of the zone. These results also indicate that the
mineralization outlined by detailed drilling plunges to the northeast and
lies beneath holes M-84 and M-86, a primary future drilling target.
The following table outlines the most significant results from the 21 holes
being reported from the Western Roscoelite zone:
Hole Interval Length Au Ag
No. (m) (m) g/t g/t
---- ----------- ------ ---- -----
M-64 85.5- 90.0 4.5 1.35 5.7
M-68 67.5- 69.0 1.5 3.78 7.6
M-69 93.0-117.0 24.0 2.44 12.2
Incl 106.5-117.0 10.5 4.59 22.3
M-73 76.5-111.0 34.5 6.20 47.6
Incl 78.0- 99.0 21.0 9.22 72.7
M-75 36.5- 39.5 3.0 0.56 112.0
112.4-113.5 1.1 0.83 35.0
124.0-125.5 1.5 1.21 18.0
M-76 40.0- 41.5 1.5 1.38 270.0
116.6-121.0 4.4 1.37 23.6
125.5-128.5 3.0 2.20 34.0
163.0-165.2 2.2 5.82 85.0
M-77 187.2-188.7 1.5 100.80 16.0
203.5-208.0 4.5 3.73 2.1
M-78 84.0-132.5 48.5 2.46 113.1
Incl 84.0- 93.0 9.0 5.45 178.3
Incl 124.5-132.5 8.0 3.79 157.1
M-80 17.0- 73.5 56.5+ 2.51 36.8
Incl 51.0- 58.5 7.5 4.32 16.5
and 64.5- 73.5+ 9.0+ 9.71 47.6
M-82 15.0- 37.5 22.5 0.99 50.9
64.5- 72.0 7.5 2.53 7.0
79.5-121.5 42.0 5.97 32.1
Incl 82.5-106.5 24.0 9.44 35.0
M-83 22.5- 45.0 22.5 1.35 189.0
70.5-141.0 70.5 2.74 35.5
Incl 109.5-136.5 27.0 4.81 7.0
M-84 0.0- 6.0 6.0 1.86 7.0
M-86 183.0-184.5 1.5 29.62 20.0
M-87 52.5- 54.0 1.5 0.79 57.0
M-88 33.0- 37.5 4.5 1.19 446.7
54.0- 55.5 1.5 0.81 170.0
M-89 48.0 - 49.5 1.5 0.30 400.0
93.0 - 94.5 1.5 0.62 34.0
126.0 -127.5 1.5 0.85 28.0
No significant results were obtained from holes M-72, M-74, M-79, M-81 and
M-85. Holes M-79, M-81 and M-85 were drilled as a 350m step-out profile and
were apparently drilled above the zone.
In preparation for an independent resource calculation, Madison has just
completed detailed geologic interpretation of the Western Roscoelite zone,
including the relogging of all drill core, surface geological and
structural mapping. The following table provides a section by section
summary of the primary Western Roscoelite intersections reported thus far
within the central core area of this developing important gold and silver
deposit:
Hole Au Ag Length
No. g/t g/t (m)
---- ----- ----- ------
M-61 3.77 20.0 39.0
M-63 5.02 24.8 16.5
M-78 2.46 113.1 48.5
M-03 3.32 5.1 27.0
M-28 7.04 31.0 9.3
M-29 2.04 13.3 23.0
M-55 2.11 101.9 55.6
M-58 2.74 30.5 60.0
M-60 2.60 24.1 12.0
M-17 7.63 37.4 100.5
M-19 3.21 25.0 81.0
M-20 1.48 25.3 33.0
M-22 3.27 39.3 4.5
M-80 2.51 36.8 56.5+
M-82 5.97 32.1 42.0
M-83 2.74 35.5 70.5
M-11 1.80 47.7 73.9
M-12 3.05 43.0 67.3
M-16 5.27 9.3 42.0
M-24 3.18 15.5 33.5+
M-69 2.44 12.2 24.0
M-73 6.20 47.6 34.5
M-44 13.68 42.7 30.0
M-50 4.46 32.8 8.7
Compilation of recent drilling, geochemical sampling and geologic mapping
now confirms that the Central zone, Red zone and Water Tank zone are a
single continuous, flat-lying, near-surface mineralized zone. All three
areas are now referred to as the Central zone. Previous work at this zone
includes CRA drill holes C3 (1.9 g/t gold and 8.6 g/t silver over 46m), C9
(18.9 g/t gold and 3.0 g/t silver over 22m) and C10 (0.9 g/t gold and 22
g/t silver over 24m), as well as trench results of 2.85 g/t gold over 55m
near drill hole C9 and 3.8 g/t gold over 40m near Madison drill holes M-8
and M-10. It covers an area of approximately 150m to 400m by 600m and
remains open to expansion towards the northeast. Compilation work confirms
the importance of the Central zone, which probably can easily be mined with
open-pit methods. Further shallow drilling will be required to complete its
definition.
The following table outlines the significant results from Madison's recent
drill holes completed in the vicinity of CRA hole C3 to evaluate the
orientation of mineralization encountered in that hole. The results of
holes M-65, 66 and 67 suggest a continuous zone of mineralization which is
continuous with that encountered in hole C3, the most northeastern hole of
the Central zone.
Hole Interval Length Au Ag
No. (m) (m) g/t g/t
---- ----------- ------ ---- -----
M-65 0.0 - 4.5 4.5 1.35 5.7
M-66 0.0 - 6.0 6.0 1.84 5.8
M-67 0.0 - 6.O 6.0 2.24 3.7
Drill holes M-70 and M71 returned no significant results.
Recent surface exploration (detailed mapping, trenching and auger soil
sampling program) has also outlined a new potentially mineralized zone with
many characteristics similar to the Western Roscoelite zone. This new zone,
the Lower Maratani zone, has thus far been traced for approximately 300m in
a north-south direction and is centred 1,000m to the south of Madison's
southernmost drill holes on the Western Roscoelite zone. A number of
similar alteration/mineralization characteristics, have been recognized at
these two zones, including vuggy, silicified breccia, banded sulphides,
intense bleaching and clay alteration. Initial sampling, which resulted in
the discovery of this new zone, returned up to 0.5 g/t gold in soil and 8.9
g/t gold from float samples.
A geochemical compilation, in conjunction with geologic mapping and
trenching along the 1,500m trend of the Black zone and Black zone
extension, has also been completed. The Black zone has been extended from
an initial 450m extent to 1.5km by the recent work. Initial drilling at the
northeast end of the zone returned up to 9.64 g/t gold and 67.6 g/t silver
over 39m in drill hole M-6 and 13.7 g/t gold and 42.7 g/t silver over 30m
in hole M-44. Drilling is planned to further evaluate this important
target. Madison's geologic model suggests that the highly altered limestone
comprising the majority of the Black zone extension is underlain by
intrusives, which play an integral part in mineralization controls at Mt
Kare.
Madison has been advised by its Mt Kare joint venture partner, Matu Mining
Pty, that Matu's minority shareholder, Ramsgate Resources NL, has agreed to
sell its 33% interest in Matu to Matu's majority shareholder, Carpenter
Pacific Resources NL, for A$9,400,000. Matu owns 25% of Mt Kare. The
remaining interest is owned by Madison as to 65% and by the traditional
landowners at Mt Kare as to 10%.
CPR's purchase of an effective 8.332% interest in Mt Kare ascribes a value
of A$1.128 million or C$1.104 million to each 1% interest in Mt Kare. If
this value was used as a basis to determine the value of Madison's 65%
interest in Mt Kare, it would result in a value of C$71.8 million for
Madison's interest or C$4.33 per share, based on the number of Madison's
shares which are currently issued.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
