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

To: Dan P who wrote (173)	11/27/1998 8:16:00 AM
From: Dan P	Respond to of 285

Karl, and others: Here is the release, as referred to by Karl: Dan FOR FURTHER INFORMATION PLEASE CONTACT: Madison Enterprises Corp. Nell Dragovan Chairman (604) 331-8772 (604) 331-8773 (FAX) No stock exchange has approved or disapproved the information contained herein. NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: MADISON ENTERPRISES CORP. VSE SYMBOL: MNP NOVEMBER 26, 1998 Madison Releases Initial Resource Estimate From the Mt. Kare Project VANCOUVER, BRITISH COLUMBIA--Madison Enterprises Corp. ("Madison") is pleased to announce an initial resource estimate for the Mt. Kare gold deposit in Papua New Guinea in which Madison holds a 65 percent interest. Madison contracted the engineering firm of Watts, Griffis & McOuat (WGM) to carry-out an independent resource estimate for the project which incorporates all data available as of September 10, 1998. Included in WGM's resource estimate were the 32 drill holes completed by CRA and holes 1 thru 108 and 110 completed by Madison. Assays for holes drilled subsequently, holes 135 and 136 are in progress, are expected to be released in the near future. WGM completed a mineral resources estimate using 3-D block modeling. In addition, WGM completed a project audit. Based on WGM's estimate of the resources in the area drilled to date, the Mt. Kare property has the following contained ounces of gold equivalent: /T/ Calculation of Contained Gold Equivalent Total of Indicated and Inferred Resources Resource without Resources with Au Grade Cutting Grade Cut to 30 g/t 1.0 g/t Au Cut-off 4.0 Million ounces 1.87 Million ounces (124.4 Million grams) (58.3 Million grams) 1.5 g/t Au Cut-off 3.80 Million ounces 1.64 Million ounces (118.1 Million grams) (51.1 Million grams) - Conversion of gold from metric to imperial are based on 1 troy oz = 31.104g - Gold equivalent determination based on a gold price of US $300 and a silver price of US $5.50. - Grade cutting indicates that all gold values in excess of 30 g/t were reduced to 30 g/t. /T/ As indicated in the above chart the use of uncut gold assays results in a 110 percent increase in grade and a 1.5 percent increase in tonnes above a 1 g/t Au cut-off, the latter increase due to the inclusion of additional blocks in the 3D model. This increase is the result of bonanza grade gold being included in the resource (gold assays greater than 30 g/t). The presence of bonanza grade gold associated with quartz roscoelite is a common occurrence in the Roamane Fault at Porgera and was instrumental to the positive economics of that mine. The high grade intersections at Mt. Kare occur in a similar style of quartz roscoelite mineralization and Madison believes that continued exploration will confirm the importance of bonanza grade gold in the Mt. Kare resource. The independent resource calculation prepared by WGM conforms to the July, 1996 version of the Australian "JORC" code, which Canada is in the process of adopting. WGM reported the following estimated resources by category for the Mt. Kare Project: /T/ Resource Classification Resource without Grade Cutting M Tonnes g Au/t g Ag/t g Aueq/t 1.0 g/t Au Cut-off Grade Indicated Resource 9.8 5.6 33.0 6.2 Inferred Resource 10.6 5.6 24.8 6.0 Total of Indicated and Inferred Resources 20.4 5.6 28.7 6.1 1.5 g/t Au Cut-off Grade Indicated Resource 7.1 7.3 40.4 8.1 Inferred Resource 7.3 7.7 30.2 8.2 Total of Indicated and Inferred Resources 14.4 7.5 35.2 8.2 Resource Classification Resource with Au Grade Cut to 30 g/t M Tonnes g Au/t g Ag/t g Aueq/t 1.0 g/t Au Cut-off Grade Indicated Resource 9.3 2.6 33.6 3.2 Inferred Resource 10.8 2.3 24.7 2.7 Total of Indicated and Inferred Resources 20.1 2.4 28.8 2.9 1.5 g/t Au Cut-off Grade Indicated Resource 6.8 3.2 41.2 3.9 Inferred Resource 7.4 2.8 30.1 3.4 Total of Indicated and Inferred Resources 14.2 3.0 35.4 3.6 - Gold equivalent determination based on Au price of US $300 and Ag price of US $5.50. /T/ The following excepts have been taken directly from the Summary and Conclusions of the WGM report: "With significantly higher gold prices, the "blue-sky" potential of the area presently drilled is indicated by the 31.8 (million tonnes) of (uncut) mineralization grading 3.8 g Au/t and 21.0 g Ag/t (or 4.2 g Auequiv/t) which is estimated to be present if a 0.5 g Au/t cut-off is used. With high assays cut to 30 g Au/t , this mineralization is reduced to 31.4 Mt grading 1.8 g Au/t and 21.1 g Ag/t (or 2.2 g Auequiv/t)." "With completion of the drilling within solids currently defined as part of WGM's resource estimate, and not allowing for enlargement of these outlines (which is likely), we believe the total resources at cut-offs of 1.0 g Au/t and 1.5 g Au/t may increase by 8.1 Mt and by 5.3 Mt, respectively." "WGM sees absolutely no reason to limit the potential for additional economically interesting mineralization at Mt. Kare. This is clearly one of the better gold projects we've seen in some time; we would not be surprised if Madison, through continuing drilling, achieved an major increase in its resource base." "On the basis of check sampling and assaying carried out under WGM's sole direction and supervision, we conclude that there is no justifiable reason to doubt the veracity of previously reported gold and silver contents of drill core and other samples formerly analysed from the Mt. Kare Project in Papua New Guinea." "WGM was impressed by the infrastructure in place on the project site and the overall management of the project. WGM was especially impressed by the efforts made by Madison to communicate with the local tribesmen and to include local geologists in its operations. WGM is satisfied that the Madison exploration crew is technically capable of performing the tasks required to explore the Mt. Kare Prospect, and of managing the day to day operations on the site. We also believe that the drilling contractor is using appropriate drilling techniques to maximize core recoveries thereby insuring sample integrity, and is taking appropriate measures to safeguard the core while it is in his possession." "We believe the exploration model is supported by the geological setting of the Mt. Kare area, and is being applied by Madison personnel in a flexible manner taking into account local factors. The exploration program is appropriate and well planned and Madison has gone to great lengths to insure the project is adequately supported from a logistical perspective. Exploration techniques are executed in a professional manner consistent with good exploration practice. Most importantly, drill core is halved for analysis; half is retained as a permanent record of the hole and excess sample material is retained on site in locked steel storage containers. High quality and weatherproof plastic core trays are used to protect the core." As illustrated on the accompanying figure the surface projection of the resource blocks at a 1.0 g/t cut-off covers only a fraction of the total area thought to contain significant gold mineralization at Mt. Kare. Madison is continuing its aggressive exploration program at Mt. Kare. Two diamond drills are currently operating with the objectives of expanding the resource base within the known zones of mineralization, and continuing to test significant outside targets. On behalf of the Board of Directors of MADISON ENTERPRISES CORP. Nell Dragovan, Chairman Map available upon request -30-

To: Dan P who wrote (173)	11/27/1998 8:59:00 AM
From: Karl Zetmeir	Read Replies (1) \| Respond to of 285

Here's a summary of what this is all about: Madison Enterprises (MNP VSE) Madison Enterprises has released their initial resource estimate on their Mt. Kare Project in Papa New Guinea. The resource estimate, calculated by the respected and independent consultants Watts, Griffis and McOuat, has identified a resource of 4.0 million ounces gold equivalent using a cut off grade of 1.0 g/t and 3.8 million ounces using a cutoff of 1.5 g/t. The report notes that these are uncut grades and include the high grade bonanza gold found in the quartz roscoelite sections. This is in line with the same situation found at the adjacent Porgera Mine largely controlled by Placer Dome. The report further notes that there exists the potential for further expansion in the area, including a potential 40% increase in the immediate vicinity. Should strong gold prices return, the economic resource will be further enhanced by using a lower cut off grade. These numbers should not come as a surprise and in fact the mention of the large variation between the uncut and cut grades (1.87 Million Ounces ) could be viewed as negative while it is not necessarily the case given the characteristics of the area. We continue to view Madison positively with further upside shareholder value, not necessarily share price in the short term, resulting from an increasing reserve base and increasing gold values.