Madison Minerals Inc. Gold nugget (top)
Mt. Kare Project Gold nugget (middle)
Gold nugget (bottom)

Mt. Kare Project, Papua New Guinea
General Summary
Madison Enterprises Corporation owns a 90% interest in the Mt. Kare gold exploration project in Papua New Guinea, since the acquisition in November 1999 of the 25% interest formerly held by its Australian joint venture partners Carpenter Pacific Resources. Madison holds the final 10% interest in the project in trust for the landowners of Mt. Kare. Madison has been exploring the Mt. Kare project since 1996 and has, along with its JV partners, expended Cdn$38 million and completed 36,934 meters of diamond drilling in 235 holes. In February, 2000, Watts, Griffis & McOuat updated the November 1998 Resources Estimate*. The results of their calculation have been summarized in the table below:

Mt. Kare Property
February 10, 2000 Resource Estimate
by Watts, Griffis & McOuat
  Resource with Au grade cut to 30 g/t
M Tones g Au/t g Ag/t
1.0 g/t Au Cut-off Grade

Indicated Resource
Inferred Resource
 

14.68
10.85
 

2.36
1.98
 

33.7
22.7
1.5 g/t Au Cut-off Grade

Indicated Resource
Inferred Resource
 

10.10
6.40
 

3.00
2.70
 

42.6
29.3

Mt. Kare Project
Estimate of contained gold and silver
as calculated by Madison
  Resource with Au grade cut to 30 g/t
estimated million ounces of gold estimated million ounces of silver
1.0 g/t Au Cut-off Grade

Indicated Resource
Inferred Resource
 

1.1
0.7
 

15.9
7.9

*Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this web site, such as "resources," "indicated resources," and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 0-29250, available for us at Suite 2000, 1055 West Hastings Street, Vancouver, B.C., Canada V6E 2E9. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Papua New Guinea

Mt. Kare locationPapua New Guinea (PNG) covers an area roughly the same size as the state of California. It has a population of about 4.5 million people, and it contains 4 of the largest gold and gold/copper mines in the world. The country lies directly east of Irian Jaya (Indonesia) and 160 kilometers due north of Australia. PNG is an independent democratic state with a government based on the British parliamentary system. The PNG government encourages mining and petroleum development, which dominate the national economy and provide 72% of export revenues.

Mt. Kare Project
Location

Mt. KareThe Mt. Kare property is comprised of exploration license EL1093, covering 220 square kilometers in the central highlands of mainland PNG at 3000 meters above sea level. It is contiguous to the Porgera Mine property operated by Placer Dome. Current exploration work at Mt. Kare is helicopter supported; however a road leading to the Porgera Mine comes within 3 kilometers of the property boundary and a high voltage power transmission line running to the Porgera Mine crosses the southeastern corner of the property.

Previous Exploration on the Mt. Kare Property

Gold mineralization was first discovered on the Mt. Kare property in 1986 by CRA Exploration during a regional stream sediment sampling program. At that point Mt. Kare was an uninhabited subalpine valley where local people occasionally came to hunt. CRA's activities on the property attracted the attention of local people who found abundant alluvial and colluvial gold in the area. Over the next several years a major gold rush took place on the property with an estimated one million ounces of gold being recovered from alluvial and colluvial deposits by up to 10,000 people working the field.

PeopleCRA continued with its hardrock exploration program, including drilling 32 diamond drill holes. In addition CRA acquired a portion of the alluvial gold rights through a joint-venture with the local landowners, built a plant and started small scale production of colluvial and alluvial gold. However carrying out exploration and alluvial mining in the middle of a major gold rush proved to be very difficult at Mt. Kare. Relations between CRA and the landowners deteriorated to a point where CRA decided to abandon the property and in 1993 it allowed its exploration license to lapse.

Madison became involved in the Mt. Kare property in 1996 and since then has completed 36,934 meters of diamond drilling, in addition to completing extensive programs of airborne and ground geophysics, soil geochemistry, mapping and trenching.

Gold Potential and Exploration Model

Tectonic Elements and Gold/Copper Occurances of PNGThe country of Papua New Guinea has been the site of many exploration successes which have produced world class mines such as Porgera, Panguna, Ok Tedi and Lihir. To understand the potential scale of the exploration target at the Mt. Kare property, one need only look at Madison's next door neighbor, the Porgera Mine. Including past production, the total geological resource of the Porgera deposit is now in excess of 28 million ounces of gold**. In addition to providing an effective exploration model, the close proximity and geologic similarities that the Mt. Kare property shares with the Porgera Mine indicates the world class size potential of the Mt. Kare property. The Porgera Mine opened in 1990 and over the last 10 years has averaged 800,000 ounces per year of gold production. It is interesting to note that in early reports by both geologists at Porgera and CRA geologists at Mt. Kare, the geological similarities between the two deposits were so striking that they were thought to be faulted-off extensions of the same ore body.

World class gold and gold-copper depositsPapua New Guinea forms part of an island arc; it is located in an area where plates of the earth's crust have interacted in recent geological times. The Mt. Kare property and Porgera deposit occur at a point where large scale northwest-southeast structures running parallel to the island arc are intersected by the northeast-southwest trending Porgera Transfer Structure, a very important regional feature controlling gold mineralization in this area. The intersection of these two major structures has produced a conduit from the upper mantle along which a unique suite of mineralized mafic intrusives have risen. These mafic intrusive rocks are closed related to all known gold mineralization in this area. At both the Porgera Mine and Mt. Kare property, epithermal gold mineralization is genetically related to a mafic intrusive complex which was emplaced within the Porgera Transfer Structure. The emplacement of these intrusives at Mt. Kare and Porgera produced zones of brecciation and shattered rock providing a plumbing network through which mineralized fluids have circulated and deposited gold. Mafic intrusive rocks of the unique age and composition of those at Porgera and Mt. Kare are not known to occur anywhere else in Papua New Guinea.

 There are two distinct types of gold mineralization at Mt. Kare, both of which correspond directly with the two types of ore being mined at Porgera: Early, mesothermal, carbonate-base metal-gold mineralization, which occurs in broad zones of brecciation which trend NE, paralleling the Porgera Transfer Structure. This type of mineralization has been defined in several zones at Mt. Kre and has been tested in trenches and numerous drill holes, such as hole 97 M-17. Late stage, epithermal, very high grade quartz-roscoelite-gold mineralization. This style of mineralization is analogous to the bonanza high-grade gold mined underground at Porgera. The high grade quartz-roscoelite-gold mineralization occurs in fault controlled dilatant features occurring within and proximal to the breccia zones which host carbonate-base metal-gold mineralization. These dilatant features can occur in variable orientations within the Porgera Transfer Structure. At the Porgera Mine, bonanza high grade quartz-roscoelite-gold mineralization occurs in the east-west trending Roamane Fault. At both Mt. Kare and Porgera much of the gold is tied-up in pyrite and is therefore refractory to conventional cyanide extraction. All ore at Porgera is processed in autoclaves to pressure oxidize the pyrite. Madison contracted the Placer Dome Research Laboratory to carry-out initial metallurgical testing on the Mt. Kare mineralization. Initial results have been very encouraging and achieved gold recoveries, after pressure oxidation, between 90.0 and 95.5%. Mineralization defined to date at Mt. Kare occurs in the Western Roscoelite, Central, Black and C9 zones. Currently known high grade Quartz-Roscoelite-Gold mineralization at Mt. Kare occurs in the Western Roscoelite Zone which strikes NNE and dips 65 to the east. The zone has now been traced along strike for over 700 meters by drilling and shows excellent continuity of mineralization. Soil geochemistry shows the surface trace of the Western Roscoelite Zone extending for up to 1,500 meters, and open along strike in both directions. Six hundred meters east of and sub-parallel to the Western Roscoelite Zone is the 1600 meter long multi-element Black Zone. It has now been traced over 500 meters by drilling and over 1,500 meters by soil geochemistry and trenching. The zone is still open down-dip. The Central Zone is a continuous, flat-lying, near surface mineralized zone lying between and above the Black and Western Roscoelite zones. It covers an area 300 meters wide by 600 meters long and remains open to expansion to the northeast. The total area of the surface expression of mineralized zones and untested anomalies at Mt. Kare now exceeds the surface area containing gold mineralization at the adjacent Porgera Mine. With a neighbor like the Porgera Mine, and the results obtained thus far, Madison has high hopes for Mt. Kare to become the next world class gold mine in Papua New Guinea.

**This web site contains information about adjacent properties on which we have no right to explore or mine. We advise the U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

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