Buffalo Gold Corp (fka BFG.U)

[Ed Monton]

Madison Minerals optionee drills 112 m of 5.04 g/t Au


2007-01-18 09:40 ET - News Release

Mr. Chet Idziszek reports

MADISON MINERALS INC.: ADDITIONAL DRILL RESULTS FROM MT. KARE

Madison Minerals Inc. has been advised by Buffalo Gold Ltd. of additional drilling results from Buffalo's 2006 exploration program on Madison's Mt. Kare property in Papua New Guinea. In a release issued today, Buffalo reported the final gold assay results from its first stage infill drill program, including:


112.0 metres of 5.04 grams per tonne gold in hole MK06-84;
including 25.0 metres of 13.86 g/t gold;
100.9 metres of 1.56 g/t gold in hole MK06-75; and
including 25.9 metres of 2.25 g/t gold.

All holes reported here are located in the Western Roscoelite zone (WRZ) at the Mt. Kare project, PNG, and represent the last of the infill drill holes from the first stage of the program that was completed in November. A summary of new drill intersections can be found below in table 1. Buffalo is on schedule for completing its stage 2 preliminary economic feasibility study at Mt. Kare by June, 2007, and will use these results in the recalculated resource estimate to be released in conjunction with the study.

Buffalo expands Mt. Kare camp -- four drill rigs on site and additions to the geological team

Following the success of the infill program at the WRZ, Buffalo now has four diamond drills at site to test additional objectives both in the vicinity of known mineralization and new exploration target areas.

In conjunction with the expansion of the drilling program, Buffalo is augmenting its geological team to assist with exploration at Mt. Kare.

Andrew Habets

Mr. Habets has more than 20 years of exploration experience covering all aspects of program design and implementation. Mr. Habets also has significant experience in interfacing with government and local authorities, remote communities and joint venture partners. Originally from Port Moresby, PNG, Mr. Habets has many local contacts and speaks the local language. Mr. Habets's multidiscipline background will be used in the supervising of exploration programs at the 100-per-cent-owned Buffalo licence area and the existing Mt. Kare property.

Stuart Munroe, PhD

Buffalo Gold has contracted SRK Consulting in Sydney to assist in the geological interpretation of the Mt. Kare project. Mr. Munroe will be the principal consultant working with Buffalo on the project. Mr. Munroe completed his PhD program on the world-class Porgera mine, now operated by Barrick just 17 kilometres from Mt. Kare. The SRK team will document the controls on mineralization and alteration systems at the Mt. Kare property, and build cross-section interpretations of the geology, alteration and structure. These sections will then be used to form a 3-D interpretation of the Mt. Kare deposit for input into resource models. The modelling will give a better understanding of the orientation of mineralization, which may have implications for additional drill targets to test possible along-strike and down-dip extensions to the system.

"I am excited about the world-class team we have assembled at Mt. Kare," commented Buffalo chairman and chief executive officer Damien Reynolds. "With this experienced group and four drills operating, management believes that we will successfully delineate the huge potential of these properties."

Lubu Creek stream sediment program defines targets

Lubu Creek lies approximately seven kilometres from the Mt. Kare deposit and features a magnetic anomaly coincident with known alluvial gold. Buffalo has completed a 263-sample stream sediment program at the Lubu Creek area that returned results ranging from two to 193 parts per billion (ppb). With these data Buffalo has defined a high-priority target together with a number of low level anomalous zones which are being further investigated by soil and pan concentrate sampling.

Airborne geophysical survey complete

GPX Airborne, on behalf of Buffalo, has now completed a 330-line, 4,000-kilometre airborne geophysical survey over the 220-square-kilometre Mt. Kare property and the adjacent 140-square-kilometre 100-per-cent-owned EL 1427 property. Results from previous airborne geophysical surveys have successfully identified magnetic anomalies and related structures, with which the known mineralization at Mt. Kare is associated. The new surveys will be used to identify additional magnetic anomalies and define exploration and drilling targets.


SUMMARY OF MT. KARE DRILL HOLE INTERSECTIONS RECEIVED
FROM OCT. 23, 2006, TO JAN. 11, 2007

 
                    From         To   Intercept      Gold    Silver 
 Drill hole No.       (m)        (m)        (m)      (g/t)     (g/t) 
  
 MK06-69           138.0      141.0        3.0       1.35     40.00 
                   155.9      157.0        1.2       3.78    100.00 
 MK06-70           122.0      126.3        4.3       2.46      6.78 
 MK06-71            56.0       60.0        4.0       2.66    150.73 
                   113.0      117.0        4.0       1.68      5.58 
 MK06-72           195.0      216.4       21.4       2.30      9.75 
 MK06-73           173.0      189.0       16.0       1.08      6.33 
 MK06-74            31.5       46.2       14.7       2.08      6.24 
 MK06-75            16.2       26.1        9.9       2.42      9.50 
                    98.2      199.0      100.9       1.56     15.50 
 Including          98.2      124.0       25.9       2.25     17.87 
 And               139.0      154.1       15.1       2.03     31.98 
 MK06-76          No significant intersections 
 MK06-77            52.0       61.0        9.0       2.57     12.34 
                   113.0      119.6        6.6       4.56     31.39 
 MK06-78           174.0      192.0       18.0       1.31      4.33 
 Including         174.0      179.0        5.0       2.21      5.26 
 And               185.0      192.0        7.0       1.48     13.19 
 MK06-79           174.0      229.1       54.1       1.27      9.43 
 Including         214.0      229.1       15.1       2.23     22.37 
 MK06-80             0.0       48.0       48.0       1.64      6.52 
 Including           0.0       28.6       28.6       1.96      5.73 
 And including      40.0       48.0        8.0       1.94     11.64 
 MK06-81             4.0       89.8       85.8       1.41     12.09 
 Including           4.0       17.0       13.0       2.45     10.90 
 And including      36.0       40.0        4.0       4.91     56.86 
 And including      57.0       59.0        2.0       4.10      2.55 
 And including      74.0       89.8       15.8       2.48      7.88 
 MK06-82          Borehole abandoned -- no results 
 MK06-83            54.3       71.4       17.1       0.74   pending 
 MK06-84            29.0       58.0       29.0       1.96   pending 
                    93.0      205.0      112.0       5.04   pending 
 Including         107.0      125.0       18.0       4.51   pending 
                   141.0      166.0       25.0      13.86   pending 
 Including         235.0      236.4        1.4      28.30   pending 
                  246.75      254.0       7.25       9.62   pending 
 MK06-85          No significant intersections              pending 
 

..........


Holes are not drilled in numerical or sequential order.


Buffalo has been modelling the results reported to date and has deemed that all reported intersections, including those in table 1, approximate true widths. Silver results reported in table 1 are similar to the range of results seen in the 2006 drill program results, which have a range of approximately one to 100 g/t. Gold and silver results received to date from the 2006 drill program are now posted to the Mt. Kare page of the company's website.

All samples were analyzed for gold by PT Intertek Utama Services in Jakarta, part of an internationally recognized lab testing group with ISO 17025 accreditation at the Jakarta facility. Samples were analyzed using a 50-gram fire assay with AA finish for gold and an aqua regia digestion, ICP-OES finish for silver.

Brian McEwen, PGeol, president and chief operating officer of Buffalo, is the qualified person for the Mt. Kare project and has approved the contents of this news release.