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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (2112)	3/3/2002 2:05:10 PM
From: russwinter	Read Replies (1) \| Respond to of 39344

<Since MNP acquired Mt. Kare the property has swallowed C$39 million and has had 235 drill holes poked into it.> True, but at a dime we get the benefit of paying only a three million market cap (with a million cash) for those 267 holes. Clearly an unfinished project that should be handled by a much larger company (I'd say about a US$7 million 50% exploration earn in with PDG, or with one of the Aussie firms at Porgera), but not one without some merit and I think should be more than just a promo play. Unfortunately a million bucks doesn't buy much exploration there, so you may get your wish.

To: Elizabeth Andrews who wrote (2112)	3/3/2002 2:42:42 PM
From: russwinter	Respond to of 39344

The Feb, 2000 IR: unfinished but progress has been made. Not a start from scratch project by any stretch. They rolled the dice on the high priority targets after the last PP (see last sentence), and either missed (don't think so completely) or were unable to finish (see Jan. 30, 2001 IR:http://www.sedar.com/csfsprod%2Fdata23%2Ffilings%2F00328998%2F00000001%2Fg%3A%5CDATA%5CSEDAR%5CMADISON%5C2001%5CNewsrls%5Cmnp0130.PDF). I admit confusion over what happened here and as I've said before the company sort of went underground afterwards. I still lean towards unfinished work at PC as I don't think it was ever drilled: Madison announces increase in Mt. Kare resources Contained Ounces Increase By 20%; Tonnage Increases By 27% -The resource estimate update by Watts Griffis & McOuat ("WGM") 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 1.0 g/t Au(equiv) cut-off and with the cutting of high grade Au assays to 30 g/t). Tonnage of Indicated Resources Increase By 37%, A Very Significant Increase In The Confidence Level Of The Resource - 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 90.0 to 95.5% from Mt. Kare mineralization. Madison Enterprises Corp. ("Madison") is pleased to announce an update to the initial resource estimate for the Mt. Kare gold exploration project in Papua New Guinea in which Madison holds a 90% 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 model and; secondly, to confirm extensions to the resource model and define high-priority follow-up targets. These objectives were met as this phase of exploration resulted in increases to the known resource, confirmed that all known deposits remain open to expansion and identified six high-priority follow-up targets. On behalf of Madison, WGM carried out an independent update to its November 1998 resource estimate for the Mt. Kare deposit using 3-D block modeling. 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% 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% increase in tonnage to 25.5 million tonnes up from 20.1 million tonnes (using a 1.0 g/t Au(equiv) cut-off and with the cutting of high grade Au assays to 30 g/t). 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 meters 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 g/t still results in a substantial increase in the contained gold equivalent from the number of contained ounces calculated with grade cutting to 30 g/t. 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 is also pleased to report 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 (totaling 675 kilograms of drill core) from the Mt. Kare deposit. Overall gold recoveries from a simple baseline circuit consisting of gravity concentration and CIL cyanidation averaged 67% (which is higher than expected), while a more comprehensive circuit, consisting of floatation, pressure oxidation and CIL cyanidation of oxidized ore and floatation tailings, resulted in excellent overall gold recoveries of between 90.0 and 95.5%. 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 February 3, Madison announced that it has, subject to regulatory approval, arranged a brokered private placement to raise $5.6 million to be used for drill testing these high-priority targets at Mt. Kare.