Madison outlines gold-silver mineralization near Porgera

Junior Madison Enterprises (MNP-V) is encouraged by the results of 20 diamond drill holes at the Mt. Kare gold-silver joint venture in Papua New Guinea.

The project is owned 65% by Madison and 25% by Matu Mining, a wholly owned subsidiary of Australian-listed Carpenter Pacific Resources. Kare-Puga Development, a company representing the Mt. Kare landowners, holds a 10% interest that will be carried until a production decision is made.

Drilling has been focused on three zones of mineralization: Black, Western Roscoelite and Central. Results are as follows:

* Black zone — Eight new holes were drilled into this structure, with holes 92 and 93 indicating that the zone continues along strike to the northwest and remains open.

Hole 92, drilled at minus 45, intersected 24 metres grading 2.99 grams gold and 374.44 grams silver per tonne starting from surface. At a depth of 39 metres down-hole, the drill cut a 23-metre intercept grading 0.69 gram gold and 44.49 grams silver.

Hole 93, drilled from the same pad at minus 70, intersected 57 metres grading 1.39 grams gold and 204.63 grams silver starting from surface. Included in this interval was a 22.5-metre intercept averaging 2.81 grams gold and 261.2 grams silver. At a depth of 94.5 metres down-hole, a 4.5-metre interval averaged 0.78 gram gold and 1.8 grams silver.

Holes 90, 91, 108, and 110, all of which are infill, confirm the continuity and thickness of the Black zone.

Hole 90 was drilled at minus 45 and intersected 39 metres averaging 0.69 gram gold and 173.26 grams silver starting from surface. Included in this interval was a 22.5-metre intercept grading 1.03 grams gold and 258.4 grams silver.

Hole 91 was drilled from the same pad at minus 70 and hit 106 metres averaging 1.46 grams gold and 136.52 grams silver starting from surface. Included in this hole was a 24-metre interval grading 2.23 grams gold and 357.39 grams silver, followed by a 19.5-metre intercept averaging 2.82 grams gold and 40.91 grams silver.

* Western Roscoelite zone — Five holes tested this target, with holes 100-103 drilled near the structure’s northern limb. Results confirm that mineralization continues north as a plunging body and is steeper than company geologists originally thought.

Hole 100 intersected 13.5 metres grading 1.39 grams gold and 11.31 grams silver starting at a down-hole depth of 226.5 metres. At a depth of 250 metres, the hole cut a 3-metre interval grading 5.18 grams gold and 6.6 grams silver.

Hole 101 hit 3 metres averaging 1.18 grams gold and 8.8 grams silver, starting at a down-hole depth of 259.5 metres. At a depth of 268.5 metres, the hole cut 6 metres averaging 0.78 gram gold and 3.2 grams silver.

* Central and C9 zones — Holes 94 to 97 and 104 tested the C9 zone, which underlies the Central zone. Madison believes the mineralization encountered at depth may represent the top of a feeder system through which the gold mineralization of the Black and Western Roscoelite zones travelled.

Hole 94 intersected 2.09 grams gold and 14.98 grams silver over a 12-metre interval, starting at a down-hole depth of 171 metres. At a depth of 199 metres, the hole cut through 15 metres grading 0.97 gram gold and 3.5 grams silver. At 249 metres down-hole, a 4.5-metre interval averaged 1.9 grams gold and 4.2 grams silver. Farther down the hole, at a depth of 258 metres, a 6-metre interval averaged 1.67 grams gold and 3.95 grams silver. At 283.5 metres down-hole, a 46.5-metre interval averaged 1.68 grams gold and 6.73 grams silver.

Holes 98 and 99 indicate that the Central zone mineralization continues along strike to the north and east. Hole 107 has extended mineralization in the Central zone south by 100 metres, and the zone appears to continue farther to the south.

Hole 107 intersected multiple intercepts starting from surface. The first 36 metres averaged 1.62 grams gold and 40.54 grams silver. At a down-hole depth of 166.5 metres, a 39-metre interval averaged 1.26 grams gold and 6.48 grams silver. At a depth of 216 metres, a 21-metre interval assayed 2.12 grams gold and 28.53 grams silver. At 265.5 metres down-hole, a 10.5-metre intercept ran 1.24 grams gold and 10.97 grams silver. The last interval cut 6 metres and assayed 1.75 grams gold and 13.2 grams silver at a depth of 292.5 metres down-hole.

Stepout drilling in the Black zone is now focused on an area 450 metres south of previous drill holes. Results are pending.

Two distinct types of mineralization are recognized at Mt. Kare. The first is early mesothermal carbonate base metal-gold mineralization occurring in broad zones of northeasterly trending brecciation running parallel to the Porgera Transfer structure. This type of mineralization, defined in the Central and Black zones, is analogous to that being mined at Porgera. The second type, described as a late-stage, epithermal, high-grade quartz-roscoelite, is found in the Western Roscoelite zone. This mineralization resembles the bonanza-grade reserves previously mined underground at Porgera.

Watts Griffis & McOuat has been retained to perform a resource calculation, based on available drill data.

Currently, two drills are being employed in an open-ended program designed to determine the extent of known mineralization and follow up on showings and new discoveries.

The Mt. Kare property covers 220 sq. km in the central highlands of mainland Papua New Guinea. It lies 15 km southwest of the Porgera open-pit gold mine, which contains proven and probable reserves of 79.8 million tonnes grading 4.3 grams gold. Additional measured and indicated resources weigh in at 28.3 million tonnes grading 2.4 grams gold, and mineralized material in the inferred category is estimated at 26.8 million tonnes grading 2.7 grams gold.