MADISON MINERALS ANALYSIS
Madison Minerals Inc. is a gold and silver exploration company with two key assets in its portfolio. Both projects are strategically located next to gold mining projects owned and operated by senior gold mining companies and both projects possess enormous potential.
Mt. Kare Property, Papua New Guinea
The Mt Kare project in Papua New Guinea (PNG) has a resource of approximately 2 million ounces of gold and 20 million ounces of silver. The property is contiguous with and shares a similar geological and structural setting as the world-class Porgera Mine (8.2 million ounces of gold in reserves) owned and operated by Barrick Gold. Mt. Kare hosts an NI 43-101 compliant indicated resource of 1.4 million ounces of gold contained in 18.83 million tonnes grading 2.31 g/t gold and 17.31 g/t silver, using a 1 gram gold-equivalent cutoff grade, plus another 288,000 ounces contained within an inferred resource of 5.75 million tonnes at 1.56 g/t gold and 9.5 g/t silver. Madison worked on the Mt Kare property for close to ten years and has spent in excess of $33,000,000 Canadian to date. Madison Minerals presently owns a 100% interest in the Mt. Kare Property, which includes a 10% interest held in trust for local landowners.
F.W. Lewis property in Nevada
The second asset is the F.W. Lewis property in Nevada and it directly abuts Newmont Mining’s Phoenix-Fortitude complex that has over 6,000,000 ounces of gold in its resource base, millions of ounces of both gold and silver having been already produced. The company traced the extension of the Virgin Zone north from the Newmont boundary onto the Lewis Property for at least 4.5 kilometers, of which only a small portion has been drill-tested to date. Madison's drilling has also tested a series of associated structural splays, one of which returned bonanza grades of 17.5 g/t gold and 48.1 g/t silver over 32 meters at its intersection with the Virgin Zone.
Belencillo Project, Panama
Madison Minerals, through a wholly owned Panamanian subsidiary, holds a 31.12% interest in the Belencillo Concession situated in the Petaquilla Mineral District of eastern Panama. The remaining interest is owned by Petaquilla Minerals Ltd., the operator of the nearby Molejon Gold Mine scheduled to begin production in 2009. Upon receipt of all permits, the newly constructed, 2,200-tonne-per-day Molejon Mine is expected to produce 100,000 ounces of gold in its first full year of operation. Madison is seeking to sell this interest on the most favorable terms obtainable.
CONCLUSION
Because of the two-decade bear market in the gold and silver sector which has now been proven by the Gate organization to have been caused by illegal collusion by the world central banks , the capital investment from the senior precious metals companies exploration programs collapsed. During that same period, only high-grade gold was mined in a process known as “high grading”. Companies fought for their very survival by mining their high grade ore that was easily assessable when gold was at historically low prices. The result is that their major reserves and resources have been severely depleted so they are constantly on the lookout for new discoveries to replenish their asset base.
The senior companies that need large deposits due to economies of scale are currently scrambling to buy up the junior exploration companies with large deposits that will be viable within their operation and organizational structures. What is just beginning and will continue for the next ten years is the last great gold rush(all precious metals) and to be followed later by the rare earth metal rush on this earth. This will build into a feeding frenzy in the next two years for the last great asset grab on earth in the metals. This is one of the compelling reasons for Madison’s ultimate success in addition to the fact that they have a management team that is proven and successful. This is a team that has made a practice of finding quality properties close to or contiguous to those successful projects operated by senior mining companies. Mergers and acquisitions will continue to dominate the industry as the senior mining companies seek to increase their depleted resource base with companies like Madison Minerals.
This company has been building a foundation for many years based in trust, projects, exploration, evaluation, and joint ventures. This long term patience in company building by Madison has built a large base of loyal shareholders who know what is going to occur when projects like the Lewis project is fully realized. Madison is going to be an overnight success once they are recognized by investors for the company has spent the last tens years reaching the point they are at now. Quality projects usually take a great deal of money and a great deal of time. Madison has expended both on their major projects and that gives them excellent value at this stage of the game. I fully expect that the company will be bought out by either Newmont or Barrick for the known resource base of Madison and that today's share holders will be owners of stock in the winning company. Madison in the coming months is just waiting of it's share price to rise for better parity stock swap from it's Prince Charming. Buy Madison at these cheap prices before it goes up and get an incredible stock swap deal from either Barrick or Newmont in the next 12 months. With only 37.4 issued and outstanding shares and a total of 41.7 fully diluted as of May 2010, the stock swap will be an incredible deal for current Madison stock holders.
