Madison Copper Gold Project, Montana USA
APM has acquired the fully permitted Madison Copper Gold Project near Silver Star Montana, USA from Madison Metals. The Madison Copper Gold Project is located in the heart of Montana’s prolific copper-gold belt only 38km southeast of the world-renowned Butte Mining District. The Project consists of 136 unpatented and 6 patented claims (2514 acres), accessed via improved dirt roads. The project is currently under an earn-in, joint venture agreement announced by Broadway Gold on April 30, 2019, whereby Kennecott Exploration Company, part of the Rio Tinto Group (ASX, LON: RIO) may spend $30 million USD to earn up to 70% of the project. Click here to listen to the April 14, 2020 2:15PM PST Webinar.
- UG17-05: 24.5 g/t Gold over 30m (from 8.2m)
including 68.6 g/t Gold over 4.6m (from 22.8m)
and 82.9 g/t Gold over 2.7m (from 9.1m)
- UG17-06: 41.7 g/t gold over 11m (from 8.2m)
including 51.8 g/t gold over 4.6m (from 9.1m)
- C17-13: 6% copper over 4.6m (from123.4m)
including 11.45% copper over 1.8m (from 124.4m)
Key terms of the Broadway/APM Madison Transaction:
- APM will issue 20 million APM shares to Madison Metals post-consolidation (subject to a 6 month hold period in escrow)
- APM will issue 5 million APM warrants priced at $0.25 to Madison Metals post-consolidation (18 month expiry)
- Madison Metals will add one member to the APM Advisory board
Rio Tinto JV Terms
Rio Tinto/Kennecott must spend US$30 million over 11 years to earn 70% of the project
- USD$5-million earn-in over five years that generates a 55% interest for Rio Tinto
- USD$15-million earn-in over eight years that generates a 65% interest for Rio Tinto
- USD$30-million earn-in over 11 years that generates a 70% interest for Rio Tinto
Other Key Highlights
- 2% NSR on 104 of the unpatented and patented claims
- Small Miners Exclusion permit allows 5 acres of disturbance
- Water discharge permit in place with the State of Montana
- Storm water discharge permit current with Montana Department of Environmental Quality
- All easement accesses are current
- UG workings have been substantially rehabbed
- Favorable geology and structural setting provide numerous exploration targets
Broadway Mine Production*
- 144,000 oz of gold with average grades of 9 g/t from 1.8 km length of underground workings (depth of 230m)
Madison Gold and Copper Shipments**
- 2008: First oxide gold averaging 19 g/t Au shipped to Barrick Gold’s nearby Golden Sunlight Mine (Whitehall, Montana)
- 2009: First sulphide gold averaging 20 g/t Au shipped to Kinross Gold’s Republic Mine (Republic, Washington)
- 83% average gold recovery from 12 shipments
- 20,000 tons (14597 tons of gold skarn, 5,208 tons of copper skarn) shipped as bulk sample during underground development and milled recoveries of 7,570 ounces of gold and 3,020,000 pounds of copper***
* Hosted within Madison Project
** Shipments- stockpiling oxide gold, massive sulphide gold and copper mineralization for subsequent mill shipment
***Source: Madison Project report June 2016, Page 1
Combined Madison Drill Results
The project, a high-grade Cadia-like skarn over porphyry system, encompasses 2,514 acres consisting of six patented lode claims and 108 unpatented mineral claims. Recent interpretations identified multiple priority target areas believed to be associated with large-scale porphyry mineralization at depth and located within a well-mineralized, two-mile-long geological, geophysical and geochemical trend. The project is permitted for mining, surface and underground exploration.
The Broadway mine produced 144,000 ounces of gold from 1880-1950. The Madison mine was developed between 2005-2011 and generated 7,570 ounces of gold and 3,020,000 pounds of copper from bulk samples of 19,803 tons (average 0.52 ounce/ton Au and 25% Cu). Approximately 3,000 total feet of underground workings go to a depth of 215 feet underground. Broadway Gold Mining Ltd. refurbished parts of the Madison Mine in 2017, rehabilitating the underground workings in order to access certain stopes and mineralization, allowing for a successful exploration drill program to take place as well.
Currently, known skarn mineralization, gold-bearing jasperoid and massive sulphide gold and copper mineralization is proposed to be linked to a deeper porphyry system.
Click here for the NI 43-101 report on the Madison Project effective March 4, 2019, prepared by Philip S. Mulholland, C.P.G.