THIS UNDISCOVERED GEM ( MDEX.PK)
Watch it go crazy on Monday morning
February's Feature Company...
Madison Explorations, Inc.
CURRENT SHARE PRICE $0.36
Madison Explorations, Inc. (MDEX.PK; $0.36) S.T. Target $2.75
Madison is incorporated in Nevada. Shares trade in New York under the ticker
symbol MDEX. Current price per share is just 36 cents, nearly 300% above its
September low. Opportunities as clear and sparkling as this one come along
rarely. Carpe diem!
There are those rare times when the decision to invest in a particular stock or
industry is a no-brainer: homeland security in the wake of 9-11, gold in the
fall of 2001, and China in early 2002, for example, to name a few prescient
calls. The Canadian diamond industry and diamond explorer Madison Explorations
present us with just such a unique opportunity.
Canadian Diamonds: An Industry in the Rough
Canada is entering only its sixth year as a diamond player, but already it's the
world's #3 diamond producer, behind Botswana and Russia. From 2002 to 2003,
Canadian diamond production more than doubled to 11.2 million carats. In a very
short time, Canada has gone from a non-entity in the diamond biz to a supplier
of about 15% of the world's rough diamonds. Today, nearly half of all funding
for diamond exploration goes to Canada.
Even more impressive than the huge growth itself is the fact that that huge
growth has come on the strength of just two active diamond mines: Ekati, jointly
operated by Dia-Met and BHP, and Diavik, jointly operated by Aber and Rio Tinto.
Tahera's Jericho Mine will go online next year. Snap Lake, a joint venture
between De Beers and Winspear - is slated for full production in 2007. It will
propel Canada passed Russia into the #2 spot amongst the world's diamond
producers - with just four active mines! In terms of end-market, Canadian
diamonds have a crucial advantage over the competition: Unlike diamonds from
Angola, Liberia, and Sierra Leone, for instance - "blood diamonds" used to
finance bloody political conflict, Canadian diamonds are "clean." Consumers'
preference for clean diamonds is one of the reasons Tiffany struck a deal with
Tahera to buy or market all the diamonds Tahera's Jericho Mine produces. Tiffany
refuses to sell "blood diamonds."
Madison Explorations: An Investor's Best Friend
The Northwest Territories has been the preferred target area for diamond
explorers. Shore Gold's discovery of a 19.7 carat rock at its Star Diamond
Project last year intensified exploration in Saskatchewan, the second most
active exploration area in the Northwest Territories as measured by money
inflows. Madison Explorations is the most active explorer in Southern
Saskatchewan. That includes the De Beers-Kensington partnership. Madison's
primary area of exploration is Scout Lake, which, according to the Saskatchewan
Geological Survey, is one of the two most promising diamond areas in the
province. That conclusion confirms the work of Dr. Joseph Montgomery, the
director of five mining companies and Madision's lead diamond explorer. Dr.
Montgomery has spent more than a decade surveying the area. He is a person of
considerable expertise and is exceptionally well regarded in the metals and
minerals discovery business. Dr. Montgomery has been involved in more than 300
prosperous mineral explorations all over the world, including projects for
Diamond Fields. Based on his ten years surveying Scout Lake, Dr. Montgomery
believes it is one of the most promising diamond locations he's ever seen and
that the area could be home to the largest diamond deposit in the province
Madison is the only active explorer in Scout Lake, which, from a geological
standpoint, has many of the same characteristics as Fort à la Corne, where Shore
Gold made last year's spectacular discovery. Madison is currently exploring two
other potential diamond properties in Southern Saskatchewan, Bulls-eye and
Bronco. The results of early indicator studies at both properties have been very
Winspear, Dia-Met, and Aber each partnered with a more senior diamond producer.
Madison is currently the only active explorer in one of the most potentially
diamond-rich regions within a national industry that is experiencing dazzling
growth and whose full potential is only just now being tapped. We would
not be surprised to see Madison follow the trend and partner up with a De Beers,
for instance. In the meantime, look for additional diamond property acquisitions
and discoveries by this aggressive upstart - and for substantial share price
appreciation over the mid- to long-term.