Madison also eyes property’s placer potential

Junior Madison Enterprises (MNP-V) has released more encouraging drill results from the Mt. Kare gold project in Papua New Guinea.

Diamond drilling has expanded the Black Zone area, resulting in the discovery of limestone-hosted gold-silver mineralization. This new zone, dubbed the Black Zone South Extension, is about 400 metres southwest of the Black Zone.

Ten diamond drill holes tested the new zone along a 110-metre strike length. Highlights include the following:

• Hole 109 intersected 21 metres averaging 1.92 grams gold and 8.9 grams silver per tonne, starting at a down-hole depth of 46.5 metres. Included in this intersection was a 4.5-metre interval of 2.75 grams gold and 19 grams silver, starting at a down-hole depth of 46.5 metres.
• Hole 111 cut 7.5 metres of 2.34 grams gold and 33.9 grams silver starting at a down-hole depth of 126 metres. This was followed by a 3-metre-intercept averaging 1.26 grams gold and 2.6 grams silver, starting at a down-hole depth of 163.5 metres.
• Hole 131 returned 9 metres of 1.4 grams gold and 6.6 grams silver starting at a depth of 4.5 metres down-hole.
• Hole 135 cut 3 metres of 1.86 grams gold and 4.9 grams silver starting at a down-hole depth of 49.5 metres.

  Deeper drilling in the area encountered strong pyrite mineralization, and Madison plans to conduct further drilling to evaluate this new target.

  Extensive drilling along the northern margin of the Black Zone has expanded mineralization there by about 23%.

  Watts Griffis & McOuat estimated that the new resource weighs in at 2.3 million tonnes grading 2.9 grams gold and 110 grams silver. The estimate was calculated using a cutoff of 1.5 grams gold and uncut assay results.

  Highlights from the 16-hole program are as follows:

• Hole 130 cut 85.5 metres averaging 7.2 grams gold and 71.6 grams silver, starting at a down-hole depth of 48 metres. Included in the interval was a 52.5-metre intercept of 10.39 grams gold and 97.2 grams silver.
• Hole 116 intersected 78 metres averaging 2.83 grams gold and 26.3 grams silver, starting at the surface. Included in this interval was a 15-metre intercept of 11.78 grams gold and 58.8 grams silver.
• Hole 119 returned 93 metres averaging 1.34 grams gold and 84.2 grams silver starting from the surface. Included in this interval was a 78-metre intercept averaging 1.52 grams gold and 100.1 grams silver.
• Hole 122 intersected 55.5 metres averaging 1.89 grams gold and 11.7 grams silver, starting at a down-hole depth of 57 metres. Included in this intersection was a 9-metre intercept of 1.54 grams gold and 50.6 grams silver.
• Hole 123 cut 63.5 metres averaging 3.81 grams gold and 45.2 grams silver starting from a down-hole depth of 12 metres.
• Hole 124 intersected 60 metres averaging 2.24 grams gold and 68.9 grams silver starting at a down-hole depth of 15 metres. Included in this interval was a 6-metre intercept of 4.6 grams gold and 86.5 grams silver. Another interval averaged 8.37 grams gold and 65.8 grams silver over 12 metres.
• Hole 126 cut 3 metres averaging 3.05 grams gold and 63.5 grams silver starting at a down-hole depth of 30 metres. At 42 metres down-hole, the drill intersected 42 metres of 3.21 grams gold and 33.1 grams silver, including a 25.5-metre interval of 5.08 grams gold and 41.2 grams silver.
• Hole 127 hit 60 metres of 1.34 grams gold and 63.3 grams silver, including 18 metres which assayed 1.19 grams gold and 134.4 grams silver.

Four holes were collared on the Lower Maratani target, situated 1 km south of the Central zone, though only anomalous gold results were returned.

Concurrent with its diamond drill program, Madison is evaluating the property for its placer potential. As a result of overburden sampling 5 km northeast of the Black Zone, the company discovered what could be an alluvial or a colluvial gold prospect. Samples of sub-crop taken from the base of overlying gravels are said to contain visible gold. The company states that up to 20% of this gold occurs as fresh platey specks and nuggets that appear to have been derived from a local hardrock source.

Madison intends to carry out an aggressive surface program aimed at defining drill targets based on the relationship between surface gold showings and the underlying magnetic anomalies.

Two drill rigs are operating at the Mt. Kare project, continuing Madison’s program of infill and expansion drilling. Assays from hole 46, which is reported to have intersected coarse gold, are expected shortly.