Madison Mineral


Mt. Kare Property, Papua New Guinea Madison Minerals has conducted extensive exploration programs for almost a decade at the Mt. Kare Property, which hosts significant gold-silver resources and covers 220 square kilometres of prospective ground in Papua New Guinea. In mid-2005, the company granted privately held Longview Capital Partners an option to acquire up to 100% of its 90% interest in the Mr. Kare Property. These rights were subsequently assigned to Buffalo Gold Ltd., which has launched a major exploration and development program aimed at advancing the project to pre-feasibility by July 2007. Buffalo Gold can acquire a 51% interest in a Madison subsidiary that holds 90% of the property by completing a pre-feasibility study by July 4, 2007, and making staged payments totaling $1.15 million (in cash or shares) by mid-August, 2007. This can be increased to 65% by completing a bankable feasibility study no later than 18 months after electing to undertake the study. Once it has acquired a 51% interest, Buffalo Gold can acquire the balance of Madison’s interest based on an independent valuation for cash, shares or a combination of both. If Buffalo elects not to acquire the remaining interest, Buffalo and Madison will enter into a joint venture to continue development of Mt. Kare. Based on an estimate prepared by the independent consulting firm of Watts, Griffis & McOuat, Mt. Kare hosts indicated mineral resources of 14.68 million tonnes grading 2.36 grams gold and 33.7 grams silver per tonne, plus another 10.85 million tonnes grading 1.98 grams gold and 22.7 grams silver in the inferred category. This represents about 1.8 million ounces of gold and 23.8 million ounces of silver (using a 1 gram gold-equivalent cut-off grade, and cutting high-grade assays to 30 grams). Buffalo Gold has completed its infill diamond-drill program targeting the Western Roscoelite Zone. The remaining assays from this program are expected to be received in the first quarter of 2007. All results will be used in the pre-feasibility study, which is scheduled for completion in July, 2007. Another phase of drilling has the objectives of drill-testing both known gold occurrences and new exploration target areas. Buffalo expects this phase of the program to be completed by March of 2007. Buffalo’s 2006/2007 program will continue to drill closely spaced holes in areas of known mineralization to increase the level of confidence in the data and test extents of mineralization. The company has advised Madison that the data will be used in a new resource calculation and will include results from the drilling at the Western Roscoelite Zone, Black Zone, Central Zone and C9 Zone at the Mt. Kare Property. Details of Buffalo Gold’s ongoing work programs can be found at www.buffalogold.ca. The Mt. Kare property lies with a mineral-rich district that forms part of the “Pacific Rim of Fire” and hosts many large, world-class mineral deposits in PNG and nearby nations, such as the vast Grasberg copper-gold mine in Papua, Indonesia. On a local scale, Mt. Kare is contiguous with, displays the identical geological host stratigraphy, and is situated on the same regional structure that controls mineralization at the Porgera mine owned by Barrick Gold. Porgera is a world-class deposit that produces about 800,000 oz. gold annually. The deposit hosts more than 28 million oz. of gold, including reserves, resources and past production.

Mt. Kare Property, Papua New Guinea

Madison Minerals has conducted extensive exploration programs for almost a decade at the Mt. Kare Property, which hosts significant gold-silver resources and covers 220 square kilometres of prospective ground in Papua New Guinea. In mid-2005, the company granted privately held Longview Capital Partners an option to acquire up to 100% of its 90% interest in the Mr. Kare Property. These rights were subsequently assigned to Buffalo Gold Ltd., which has launched a major exploration and development program aimed at advancing the project to pre-feasibility by July 2007.

Buffalo Gold can acquire a 51% interest in a Madison subsidiary that holds 90% of the property by completing a pre-feasibility study by July 4, 2007, and making staged payments totaling $1.15 million (in cash or shares) by mid-August, 2007. This can be increased to 65% by completing a bankable feasibility study no later than 18 months after electing to undertake the study. Once it has acquired a 51% interest, Buffalo Gold can acquire the balance of Madison’s interest based on an independent valuation for cash, shares or a combination of both. If Buffalo elects not to acquire the remaining interest, Buffalo and Madison will enter into a joint venture to continue development of Mt. Kare.

Based on an estimate prepared by the independent consulting firm of Watts, Griffis & McOuat, Mt. Kare hosts indicated mineral resources of 14.68 million tonnes grading 2.36 grams gold and 33.7 grams silver per tonne, plus another 10.85 million tonnes grading 1.98 grams gold and 22.7 grams silver in the inferred category. This represents about 1.8 million ounces of gold and 23.8 million ounces of silver (using a 1 gram gold-equivalent cut-off grade, and cutting high-grade assays to 30 grams).

Buffalo Gold has completed its infill diamond-drill program targeting the Western Roscoelite Zone. The remaining assays from this program are expected to be received in the first quarter of 2007. All results will be used in the pre-feasibility study, which is scheduled for completion in July, 2007. Another phase of drilling has the objectives of drill-testing both known gold occurrences and new exploration target areas. Buffalo expects this phase of the program to be completed by March of 2007.

Buffalo’s 2006/2007 program will continue to drill closely spaced holes in areas of known mineralization to increase the level of confidence in the data and test extents of mineralization. The company has advised Madison that the data will be used in a new resource calculation and will include results from the drilling at the Western Roscoelite Zone, Black Zone, Central Zone and C9 Zone at the Mt. Kare Property. Details of Buffalo Gold’s ongoing work programs can be found at www.buffalogold.ca.

The Mt. Kare property lies with a mineral-rich district that forms part of the “Pacific Rim of Fire” and hosts many large, world-class mineral deposits in PNG and nearby nations, such as the vast Grasberg copper-gold mine in Papua, Indonesia. On a local scale, Mt. Kare is contiguous with, displays the identical geological host stratigraphy, and is situated on the same regional structure that controls mineralization at the Porgera mine owned by Barrick Gold. Porgera is a world-class deposit that produces about 800,000 oz. gold annually. The deposit hosts more than 28 million oz. of gold, including reserves, resources and past production.