Madison Mineral


Lewis Property, Nevada The Lewis property covers 5,500 acres of prospective mineral claims in the prolific Battle Mountain Trend, which hosts a series of significant gold mines (Marigold, Lone Tree, Phoenix-Fortitude and others) that have resources or past production collectively totaling more than 25 million ounces of gold. The deposit types range from high-grade, vein-hosted gold deposits to large gold-copper porphyry systems, and include pluton-related or hot spring gold-silver deposits, and sedimentary-rock-hosted disseminated gold deposits. The Carlin, Battle Mountain and Cortez Trends account for most of Nevada’s gold and silver production, which in 2005 totaled 6.85 million ounces of gold and 10 million ounces of silver. The state accounts for 85% of U.S. gold production and is the third largest gold-producing district in the world. Madison Minerals operates and owns a 60% interest in the Lewis Property, with it's joint venture partner, Great American Minerals Inc., holding the remaining interest. The project has been explored intermittently by previous operators, with work focused mostly on the Virgin Structural Zone, a geological structure that controls mineralization at the adjacent Phoenix-Fortitude mine owned by Newmont Mining. This newly expanded open-pit mine hosts 8.5 million ounces of gold and 660 million pounds of copper in reserves and is expected to produce between 300,000 and 350,000 ounces of gold (and by-product copper) over at least a 15-year mine life. Exploration to date on the Lewis Property has confirmed a geological environment identical to that underlying the Phoenix-Fortitude Property, including the same two mineralizing styles: a sub-vertical, structurally controlled type; and a sub-horizontal, stratigraphically controlled type. Previous exploration at Lewis has largely focused on the strike extension of the Virgin Structural Zone, which has been recognized north onto the Lewis Property for at least 15,000 feet, and remains open for expansion. The 2006 exploration program at the Lewis Property was to include 22,000 feet of drilling, but was recently expanded to 50,000 feet. The first phase included step-out holes drilled laterally and along strike from previous Madison drilling along the Virgin Structural Zone. The next phase of drilling will also target a series of northwest-oriented structural splays associated with the Virgin Structural Zone and some near by pits and trenches with small-scale historic production. A hole previously drilled by Madison tested one of these splays near its intersection with the Virgin Structural Zone and returned 105 feet grading 0.512 oz. gold per ton (or 32 metres grading 17.5 grams gold per tonne). Ongoing drilling will test other vertical and horizontal splay systems, particularly those that potentially intersect (or are associated with) the Virgin Structural Zone. Another important target is the Buena Vista Area, adjacent to the Madison/Newmont boundary, and parallel to the Virgin Structural Zone. Historic drilling was limited, spotty and too shallow to intersect the favorable structural horizon, which lies below 400-600 feet of cover. The potential of this target area has been confirmed by more recent drilling that returned gold values of up to 0.13 oz. gold per ton over 90 feet (or 3.68 grams gold over 27.43 metres), including 1.42 oz. gold over 5 ft. (or 40.25 grams gold over 1.52 metres), from a depth of 400-490 ft. Along with step-out drilling, infill drilling will be conducted to follow-up areas that have returned significant results from historic and recent drilling campaigns. Once the expanded program is completed, a resource estimate is expected for the advanced Virgin Structural Zone. Madison’s drilling to date has returned significant results from a number of holes, with highlights indicated on the table below.

Lewis Property, Nevada

The Lewis property covers 5,500 acres of prospective mineral claims in the prolific Battle Mountain Trend, which hosts a series of significant gold mines (Marigold, Lone Tree, Phoenix-Fortitude and others) that have resources or past production collectively totaling more than 25 million ounces of gold. The deposit types range from high-grade, vein-hosted gold deposits to large gold-copper porphyry systems, and include pluton-related or hot spring gold-silver deposits, and sedimentary-rock-hosted disseminated gold deposits. The Carlin, Battle Mountain and Cortez Trends account for most of Nevada’s gold and silver production, which in 2005 totaled 6.85 million ounces of gold and 10 million ounces of silver. The state accounts for 85% of U.S. gold production and is the third largest gold-producing district in the world.

Madison Minerals operates and owns a 60% interest in the Lewis Property, with it's joint venture partner, Great American Minerals Inc., holding the remaining interest. The project has been explored intermittently by previous operators, with work focused mostly on the Virgin Structural Zone, a geological structure that controls mineralization at the adjacent Phoenix-Fortitude mine owned by Newmont Mining. This newly expanded open-pit mine hosts 8.5 million ounces of gold and 660 million pounds of copper in reserves and is expected to produce between 300,000 and 350,000 ounces of gold (and by-product copper) over at least a 15-year mine life.

Exploration to date on the Lewis Property has confirmed a geological environment identical to that underlying the Phoenix-Fortitude Property, including the same two mineralizing styles: a sub-vertical, structurally controlled type; and a sub-horizontal, stratigraphically controlled type. Previous exploration at Lewis has largely focused on the strike extension of the Virgin Structural Zone, which has been recognized north onto the Lewis Property for at least 15,000 feet, and remains open for expansion.

The 2006 exploration program at the Lewis Property was to include 22,000 feet of drilling, but was recently expanded to 50,000 feet. The first phase included step-out holes drilled laterally and along strike from previous Madison drilling along the Virgin Structural Zone. The next phase of drilling will also target a series of northwest-oriented structural splays associated with the Virgin Structural Zone and some near by pits and trenches with small-scale historic production. A hole previously drilled by Madison tested one of these splays near its intersection with the Virgin Structural Zone and returned 105 feet grading 0.512 oz. gold per ton (or 32 metres grading 17.5 grams gold per tonne). Ongoing drilling will test other vertical and horizontal splay systems, particularly those that potentially intersect (or are associated with) the Virgin Structural Zone.

Another important target is the Buena Vista Area, adjacent to the Madison/Newmont boundary, and parallel to the Virgin Structural Zone. Historic drilling was limited, spotty and too shallow to intersect the favorable structural horizon, which lies below 400-600 feet of cover. The potential of this target area has been confirmed by more recent drilling that returned gold values of up to 0.13 oz. gold per ton over 90 feet (or 3.68 grams gold over 27.43 metres), including 1.42 oz. gold over 5 ft. (or 40.25 grams gold over 1.52 metres), from a depth of 400-490 ft.

Along with step-out drilling, infill drilling will be conducted to follow-up areas that have returned significant results from historic and recent drilling campaigns. Once the expanded program is completed, a resource estimate is expected for the advanced Virgin Structural Zone. Madison’s drilling to date has returned significant results from a number of holes, with highlights indicated on the table below.