Re Post from USER Caliche on StockhouseThis is some very informative discussion from a resource industry professional. Jay Taylor comments on BMG 2005 Madison Minerals Inc. Traded Toronto Venture Exchange MMR Price 2/25/05: $0.533 Shares Outstanding: 18,217,240 Market Capitalization: $9,708,878 Progress Rating: C Madison Minerals Inc. (Madison) has two gold exploration properties, both of which appear to have a good chance of hosting significant gold deposits. Given its current low market capitalization, two outstanding exploration properties , and a well-regarded management team, your editor thinks those who buy this stock at its current price have a real shot at seeing this company achieve 10-bagger status. No promises of course but this company offers great speculative value in my view, at its current price. That should become apparent to the market over time as the gold bull market continues onward and as this companys exploration programs should result in considerable in-ground wealth creation. The Lewis Property ` Lander County, Nevada Closest to home is the Lewis Property located in Lander County, Nevada. At present Madison holds a 51% interest in this property with Great American Minerals, Inc. holding a 49% interest. Under the terms of the joint venture letter agreement between Madison and GAM, Madison has now acquired a 51% interest in the Lewis property. Madison expects to shortly increase this interest in this property to 60% at which point GAM has the right to elect to retain a 40% interest and participate on joint venture basis or to allow Madison to acquire a further 15% interest, which would require Madison to complete an industry standard bankable feasibility study and to arrange on behalf of GAM, non-recourse project financing for GAM's remaining 25% interest. Based on conversations I have had with people who have followed this issue closely, your editor believes it most likely Madison will end up with a 75% interest in the Lewis Property. The Lewis property story here is rather straightforward. I would direct your attention to Madisons claim areas pictured on the map on your left. The blue areas are claims owned by Madison. The white area, to the south of the Lewis property, is owned by Newmont Mining Corporation, which company is moving toward re-opening the previous open pit mine known as the Fortitude Open Pit Mine. The new mine, which is known as the Phoenix-Fortitude Mine, hosts a mineable reserve of 6,000,000 ounces of gold. Now, note the old Fortitude pit outlined in green, and extended beyond that the impact area of the proposed Fortitude Pit extension. Not only does this impact area extend on to Madisons property but into the very area of Madisons recent drilling. Newmont has announced that it plans to produce between 400,000 and 450,000 ounces per year over a 15-year mine life. Newmont estimates capital costs of $205 million and cash operating costs of $200 to $225 per ounce. Note also from the map shown on your left that the Virgin Structure, which is the same major structure that hosts gold mineralization in the Fortitude Mine, extends north for some 15,000 feet on the Lewis Property. The brown colored rectangular area on the Lewis property is the area where Madison has focused most of its drilling to date. Some 23,885 ft. of drilling has taken in this claim area and according to management, the average grades have been higher over similar widths to the 0.034 average grade for the 6 million ounces that Newmont plans to begin mining. Obviously, it is still too early to draw any definite conclusions but at this stage, the prospects for Madison outlining a sizeable gold deposit hosted in the Virgin Structure just north of the old Fortitude Mine looks very good. And then of course we can expect the company to explore the additional 15,000 ft. of that structure in the future. In addition to the Virgin Structure, there are two other sub-parallel structures also pictured in the above property map. They are the Buena Vista adjacent to the Madison/Newmont boundary, and the Trinity system to the east of the Virgin System. Some previous drilling has taken place on the Buena Vista. Values up to 0.13 oz. gold/ton over 90 ft. were reported including a five ft. section that graded 1.42 oz. gold/ton, from a depth of 400 to 490 ft. The hole in which these values were taken actually lies within the area to be impacted by Newmonts proposed westward expansion of the Fortitude pit. This is obviously another drill target for the company. The Lewis property is a very scrumptious exploration play and in my view, there is good reason to hope that future drill results will begin to paint a picture of substantial gold mineralization on this property. It would seem to this observer that Madison should be in the catbirds seat to work out an arrangement with Newmont on terms favorable to Madison, given that (1) the proposed area of impact of the new expanded pit will encroach on Madisons claims, and (2) the above-noted high-grade hole pulled also was on land required for Newmonts proposed expanded operation. I have not had this discussion with Madisons management, but it seems to me that if Madison can build up a sizeable gold resource on its Lewis claims, Madison or the Lewis property itself could become an irresistible takeover target for Newmont. 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