Madsen boosts reserves at namesake gold mine

Underground drilling is enabling Madsen Gold (MGF-T) to increase reserves at its Madsen mine in the Red Lake camp of northwestern Ontario.

During the fourth quarter of 1996, the company outlined, in the upper three levels, an additional 10,249 oz. gold within 37,927 tonnes grading 8.4 grams gold per tonne. As a result, reserves in these levels now stand at 201,126 diluted tonnes averaging 7.99 grams gold, equivalent to 51,623 contained ounces.

Highlights from drilling in the 3-1 and 4-1 zones include 7.03 grams gold over a 1.22-metre horizontal width for hole 3M-70, and 24.51 grams over a 1.28-metre horizontal width for hole 3M-55. Visible gold was reported in both holes.

In the 2 East McVeigh zone, the most significant hole, 2M-156, intersected a horizontal width of 8.84 metres with a cutoff grade of 8.37 grams gold.

In addition, in the separate No. 7 lens, hole 3M-48 returned a cut value of 20.09 grams gold over a horizontal width of 2.13 metres. In preparation for long-hole mining, the company is opening up the lens where it intersects the second level.

Four diamond drills are on site and a fifth will be added. Two of the rigs are continuing with delineation drilling on the second and third levels of the 3-1 and 4-1 area, while the other two are concentrating on exploring for further resources contained in the western end of the North Tuff horizon.

The company has outlined, in the horizon, reserves of 89,349 tonnes grading 7.99 grams gold, which are contained in three lenses: 2-11 McVeigh, 2 East McVeigh and North Tuff. According to Madsen, the horizon is favorable for hosting further reserves, as only the easterly 91 metres of the 610-metre strike length have been drill-tested by previous owners. With the new increases, total reserves at the deposit exceed 1 million diluted tonnes grading 9.5 grams gold, equivalent to 316,019 contained ounces.

The company will soon begin a geophysical survey on surface in the northern part of the 4,047-ha property. The survey will attempt to identify ultramafic volcanic units that are similar to the those hosting the No. 8 zone.