Much of the $8 million Madison Enterprises (MNP-V) plans to spend on exploration this year will be directed at its Mt. Kare project in Papua New Guinea.
The Vancouver-based junior will conduct delineation drilling in a 1.6-by-1.1-km area of known mineralization, as well as explore for lateral extensions.
Structurally controlled quartz-roscoelite mineralization has been encountered at the project, with 11 outcrop and float samples averaging 182 grams gold and 1,170 grams silver per tonne.
Mt. Kare is contiguous with the western side of the concession, which hosts the Porgera gold mine.
A 32-hole drill program conducted between 1989 and 1990 returned 62 metres grading 3.5 grams gold in hole 9 and 38 metres grading 11.2 grams gold and 84 grams silver in hole 15.
Madison believes Mt. Kare has potential for hosting a gold deposit similar in scope and style to that found at Porgera.
To date, Madison has subjected the property to soil sampling, trenching, geological mapping, airborne geophysics and diamond drilling.
Results from hand-trenching include: 55 metres grading 2.8 grams gold; 25 metres of 3.7 grams gold and 162.4 grams silver; and 30 metres of 3.7 grams gold.
Meanwhile, a helicopter survey, exceeding 2,800 line km, has been completed over areas of known mineralization and extensions. High-resolution magnetic data from the survey are expected to determine the shape and size of the main mineralized intrusive complex.
Diamond drilling began late in 1996, only to be suspended for the Christmas break. Hole 1 was drilled to a depth of 235.8 metres, whereas hole 2, which has a planned depth of 275 metres, bottomed at 104.8 metres. Specks of fine-grained, visible gold were observed in hole 1 at depths of 96.7 and 137 metres, and in hole 2 at 15 and 49.2 metres. Drilling has since resumed.
Elsewhere, Madison is reviewing bids for a 15,000-ft. program of reverse-circulation drilling at its Apache Hills and Copper Dick properties near Deming, N.M. The target is a large-tonnage gold-silver deposit amenable to open-pit methods. Drilling is set to begin in March.
Farther afield, in Panama, the company is preparing to begin prospecting and mapping at its Belencillo property.
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