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« Back to news list... Madison at Mt. Kare
Madison Enterprises Corp. ("Madison") is pleased to announce preliminary results of metallurgical test work and assay results from the latest phase of drilling on its Mt. Kare property. Madison has received preliminary results of metallurgical test work on nine representative samples from the Mt. Kare Deposit. The Mt. Kare metallurgical testing is being carried out, on a contract basis, by the Project Development Division Research Centre of Placer Dome Inc. Although test work is still in its early stages Madison is very encouraged by the preliminary results. The Mt. Kare deposit shares striking geological similarities to the adjacent Porgera deposit where past production and current resources total 28 million ounces of gold. Gold recoveries at Porgera are reported by Placer Dome Inc. to have averaged 73% in 1997, 75% in 1998 and 75% in the first quarter of 1999. Preliminary metallurgical testing on Mt. Kare samples has shown significantly better gold recoveries as well as silver credits from the Mt. Kare mineralization (Mt. Kare mineralization contains a significantly higher silver component than the Porgera mineralization). Preliminary floatation test work carried out on three of the nine samples resulted in average gold recoveries of 90% and average silver recoveries of 75%. Madison expects that these results will increase through optimization of grind size and addition of appropriate reagents. Preliminary tests of whole ore pressure oxidation followed by cyanidation, have been completed on two of the Mt. Kare samples with higher sulphide content, and resulted in average gold recoveries of 95% at approximately 90% sulphide oxidation. Results for silver recoveries are pending. Madison expects that optimization of autoclave retention time will increase sulphide oxidation and further increase gold recovery.
The following table includes some of the significant mineral intercepts encountered since the release of the initial resource estimate. The information for holes up to hole 178 have previously been announced, while hole 187 (shown in bold italics) and following are new holes.
Significant Drill Hole Results
Holes 183 to 186, 191, 192, 196, 202 to 207 continued to explore the northeasterly extent and define the limits of the Central Zone. Drilling continued to encounter significant gold mineralization and expand the zone of mineralization. The holes furthest to the east encountered narrow intercepts. Holes 187 to 190, 193 to 195, 201, 208, 209, 212, 213, 214 and 216 tested gaps within the resource outlined by WGM and extended its limits. Holes 197 to 200, drilled to test the southern limit of the Western Roscoelite Zone, did not encounter any significant mineralization. Step out drilling successfully tested the intersection of the Black Zone and the Central Zone with holes 210 and 211, resulting in the discovery of the Realgar Zone. This new discovery is 220 metres along strike to the north of previous drilling on the Black Zone. Hole 215 was collared 70 metres to the northwest of holes 210 and 211 and did not encounter any significant results.
A hole location map and a table listing the significant drill results from the latest phase of drilling is attached. Surface exploration continues at Mt. Kare and Madison believes that the short term potential for major expansions to the mineralized zones is considerable. Madison also reports that a shareholders meeting has been convened for 10:00 a.m. on Friday, October 15, 1999 to seek shareholder approval for its proposed acquisition of the 27.78% interest in Mt. Kare held by its Australian joint venture partner, Carpenter Pacific Resources NL ("Carpenter"). Under the terms of the agreement in principal announced on July 23, 1999, Madison will issue to Carpenter 10,000,000 shares of Madison and 3,175,000 three year share purchase options exercisable at $1.00 for two years and at $1.50 in the third year. Madison expects that the formal documentation for the acquisition will be signed sometime this week. Madison and Carpenter presently own a 72.22% and a 27.78% interest, respectively, in the Mt. Kare property. They collectively hold a 10% interest in trust for the traditional landowners of Mt. Kare. Upon the completion of the Carpenter acquisition, Madison will own a 90% beneficial interest in the Mt. Kare property and will continue to hold the remaining 10% interest in trust for the landowners. Madison and Carpenter believe that the consolidation of ownership of Mt. Kare will enhance the overall value of the project and facilitate financing to enable Madison to vigorously pursue its ongoing exploration of Mt. Kare. Madison and Carpenter believe that the acquisition will ultimately result in the consolidated interest having a higher value than if the interests of Madison and Carpenter were to remain separately held.
On behalf of the Board of Directors of
"Nell Dragovan" |
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