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Gold/Mining/Energy : Madison Enterprise, MNP/VSE -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (215)	2/11/2000 12:36:00 AM
From: m jensen	Read Replies (1) \| Respond to of 285

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