Lewis Property

Click for larger photoMadison is currently exploring the 5500 acre Lewis Property, strategically located within the Battle Mountain Mineral Belt, immediately north and contiguous to Newmont Mining Corporation's Phoenix-Fortitude Property. The southern boundary of the Lewis Property lies immediately north of the Fortitude Open Pit Mine that is host to a mineable reserve of 6,000,000 ounces of gold*. The Virgin Structural Zone, which has been mined in the Fortitude Pit, extends north onto the Madison Lewis property for some 15,000 feet. Madison's drilling on the Lewis Property has not only verified the continuation of the Virgin Structural zone to the north, but also intersected gold mineralization of similar and higher grade than was encountered in the Fortitude Pit.

Madison's Lewis Property is strategically located within the Battle Mountain Mineral Belt, immediately adjacent to the north and northwest of Newmont Mining Corporation's Phoenix-Fortitude Property. The Lone Tree deposit (53 million tonnes grading 0.061 oz/t gold), the Marigold deposit (11 million tonnes grading 0.03 oz/t gold) and the Trenton Canyon deposit (5 million tonnes grading 0.039 oz/t gold) are located, respectively, fourteen, eight and four miles north of the Lewis Property within the prolific Battle Mountain Trend* (See Figure 1).

Newmont Mining Corporation - Phoenix Fortitude Property
Newmont has reported current mineable reserves at the Phoenix-Fortitude Property of 174 million tons grading 0.034 oz/t gold, containing 6,000,000 ounces of gold at US$300 per ounce along with an additional 73.8 million tons grading 0.026 oz/t gold not included as mineable reserves. Past production for the Phoenix-Fortitude Property exceeded 2,000,000 ounces of gold. Newmont has reported that it intends to resume production at Phoenix-Fortitude in 2006 and estimates a mine life of fifteen years. On December 15, 2003, Newmont announced that it had received all necessary US federal government approvals to resume production at the Phoenix mine and that it would be carrying out drilling in 2004 for additional pit expansions, including the Fortitude pit. On January 6, 2004 Newmont announced that it had commenced the development of the Phoenix project, expected to deliver annual production of between 400,000 and 450,000 ounces of gold over the anticipated 15-year mine life Newmont's estimated capital costs of approximately US$205 million, cash costs of US$200 to US$225 per ounce (at US$300/oz gold) and estimated production of 400,000 ounces per year show that the Phoenix-Fortitude Property will have even more robust economics at US$400/oz gold, which bodes well for the Lewis Property.

Madison 2003 Exploration Program
Exploration of the Lewis Property during 2003 has successfully outlined a geological environment similar to that underlying the Phoenix-Fortitude Property, including a direct on-strike extension of the hosting stratigraphy, controlling structures and mineralizing styles. As shown in the following table, drilling results from the Lewis Property compare favourably with Newmont's reserve grades at the Phoenix-Fortitude Property. Many of Madison's drill hole intersections, however, have returned gold grades higher (over similar widths) than the average grade (0.034 oz/t gold) of the 6,000,000 ounces of reserves reported by Newmont to be present at the Phoenix-Fortitude Property and some are the highest grade gold intervals returned from the Battle Mountain Mineral Belt.

The following table outlines the most significant mineralized intervals from drilling to date on a section by section basis (please refer to the attached drill plan for drill hole locations):

Madison's work to date on the Lewis Property has focused on the Virgin Structural Zone where it has identified two distinct styles of mineralization: a sub-vertical, structurally controlled type and a sub- horizontal, stratigraphically controlled style. The bulk of Madison's drilling (Figure 2) has been directed at the immediate on strike extension of the Virgin Structural Zone north of the boundary with Newmont's Phoenix-Fortitude Property. Madison's drilling (thirty-three drill holes totaling 23,885 feet) on a section by section basis, as shown on the preceding table, has confirmed excellent lateral (section to section) and vertical continuity of mineralization from surface to a minimum depth of 700 feet below surface. The gold-bearing mineralization, at least 1,850 feet in extent, takes the form of a continuous, sub-vertical, body with a series of connected sub-horizontal, amoeba-shaped zones. Mineralization remains open to expansion both laterally and vertically within each style of gold mineralization.

As shown in Figure 3, in excess of 15,000 feet of the Virgin Structural Zone and its associated splays occurs within the Lewis Property. Two additional sub-parallel structural zones of exploration interest, the Buena Vista and Trinity systems, cross a large extent of the Lewis Property. Both of these fault systems are known to host gold mineralization, including small-scale historic production. Previous drilling at Buena Vista (adjacent to the Madison/Newmont boundary) has returned gold values of up to 0.130 oz/ton over 90 feet, including 1.42 oz/ton gold over five feet, from a depth of 400 to 490 feet. This hole, FWL-12, lies within the area to be impacted by Newmont's proposed westward expansion of the Fortitude pit and has yet to be followed up with additional drilling.

2004 Exploration
Madison's exploration of the Lewis Property will resume in early 2004. It will focus on establishing a preliminary resource estimate for that portion of the Virgin Structural Zone where Madison has carried out detailed drilling, as well as expanding step-out and detailed drilling northwards and southwards along the Virgin Fault. Madison will also begin exploration of the Buena Vista and Trinity Fault systems and the northward extent of the Virgin Fault.

Lewis Property Agreement
Madison and Great American Minerals, Inc. ("GAM"), are entitled, pursuant to an exploration and option to purchase agreement dated June 1, 2002 (the "Lewis Agreement") with F.W. Lewis, Inc. ("Lewis") to jointly acquire a 100% interest in the Lewis Property. Under the terms of the joint venture letter agreement between Madison and GAM, Madison has now acquired a 51% interest in the Lewis Agreement. Madison expects to increase this interest in the Lewis Agreement to 60% shortly at which point GAM has the right to elect to participate on a 60/40 joint venture basis or to allow Madison to acquire a further 15% interest (75% in the aggregate) by completing an industry standard bankable feasibility study and arranging on behalf of GAM non-recourse project financing for GAM's remaining 25% interest.

*This web site contains information about adjacent properties on which we have no right to explore or mine. We advise the U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

** Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this web site, such as "resources," "indicated resources," and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 0-29250, available for us at Suite 2000, 1055 West Hastings Street, Vancouver, B.C., Canada V6E 2E9. You can also obtain this form from the SEC by calling 1-800-SEC-0330.