http://www.ipa.gov.pg/index.php?option=com_con

very interesting the general comment at the end of this


Mt Kare Gold Project





Code 313 - The Mt Kare Gold Project



An on going exploration program currently in progress at Mt Kare includes a compilation of all previous exploration data, an airborne geophysical survey by Aerodat Inc., geological mapping, grid soil auger sampling, trenching and diamond drilling (45 holes released).




Project Name:

Mt Kare Gold Project



Sector:

Mining/Processing (Gold)



Brief Summary:

During the major gold rush from 1988 to 1991, more than one million ounces of gold was recovered from Mt Kare area by locals panning alluvial/colluvial deposits. Much of this gold occurs as angular to crystalline flakes and nuggets thought to be derived from a local source. Previous exploration and drilling by CRA Minerals (PNG) Ltd Exploration (CRA) (32 holes) on a small portion of the property intersected significant widths and grades of gold mineralization (eg. MK-13, 21m @ 5.7 g/t Au; MK-15, 38m @ 11.2 g/t Au). An on going exploration program currently in progress at Mt Kare includes a compilation of all previous exploration data, an airborne geophysical survey by Aerodat Inc., geological mapping, grid soil auger sampling, trenching and diamond drilling (45 holes released). Results of this exploration define several mineral zones of interest including: Western Roscoelite: M-5, 31.8m @ 308g/t Au 129g/t AgM-16, 42m @ 5.2g/t Au & 9.3g/t AgM-17, 100.5m @7.6g/t Au & 37g/t AgM-44, 30m @ 13g/t Au & 42g/t Ag Red Zone:M-13, 33m @ 2g/t Au & 67g/t AgM-29, 44m@ 3g/t Au & 42 g/t Ag Black Zone:M-6, 39m @9.6g/t Au & 67g/t AgM-7, 40.5m @4.3g/t Au & 88g/t AgM-43, 18m @ 2.3g/t Au & 13.8 g/t Ag Mineralization at Mt Kare is genetically related to an alkalic mafic intrusive complex. Intrusive of this unique age (6my) and composition are not known anywhere In PNG except at Pogera and Mt Kare. The potential size of the intrusive complex at Mt Kare is outlined by a 6 kilometer diameter magnetic anomaly similar in size to that at Pogera. Only 10% of this anomaly has been explored to date. Epithermal textures and fluid inclusion studies suggest that mineralization intersected in drill holes at Mt Kare is from the un-eroded portions of an epithermal mineralizing system, suggesting mineralization may be preserved at depth.



Project Location:

North of Tari Pori Electorate in Southern Highlands Province and West of Pogera Laiagam Electorate in Enga Province.



Type of Foreign Collaboration Sought:

Joint Venture Partnership of 60 - 40% interest/equity with the Landowner Umbrella Company - Mt Kare Huli Paiela Development Corporation Limited (MKHPDC). Formation of Joint Venture Company (JVC).



Total Investment Value:

US $20 million; PNG Kina equivalent is K52.2 million (exchange rate of US $0.3835 as of 15th August 2008)



Foreign contribution Required:

At least 75 - 80% of the total investment cost. Machinery & Mining technology identified.



Status of Project:

Pre-feasibility Study conducted by Buffalo Gold Ltd. (TSX VENTURE:BUF.U), please visit the company website at www.buffalogold.ca.



Contact:

DirectorBusiness Investment & Exports Promotion DivisionInvestment Promotion AuthorityP.O.Box 5053BOROKON.C.DPapua New Guinea Telephone: +675 308 4444/ 321 7311Fax: +675 320 2237E-mail: [email protected] / [email protected]: www.ipa.gov.pg Mr. Eddie YuwiSecretaryMt Kare Huli Paiela Development Corporation (MKHPDC) P.O.Box 2927BOROKON.C.DPapua New Guinea Mobile Phone: 72986164/ 697 3834 Email: [email protected]



General Comment:

The property is contiguous with the Pogera Mine Property of Placer (PNG) Pty Ltd., Goldfields Pogera Pty Ltd and the State of Papua New Guinea. Mt Kare is located less than 10 kilometers away from Pogera Mine which is one of the largest gold deposits in the world. Access to Mt Kare is through by Helicopter as it is surrounded by thick endless jungles, high rugged mountains and water logged valleys. At present tenement EL 1093 holder is Madison-Buffalo JV and their validity in possession of the license expired in 20th August 2008. It was not renewed because of the Landowners’ objections on outstanding compensation payments and other related issues yet to be settled for the past 16 years. The landowners trust company, MKHPDC Ltd has had filed an application already with the Supreme Court to deliberate on the compensation payments and the breaches of Joint Venture Agreement and to be heard in April. Developer who has interest in Mt Kare gold project is openly welcomed by the legitimate landowners to negotiate the future prospect of the mine for the maximum benefit of both parties. Technically Alluvial Mining Lease and Exploration is feasible and detail feasibility would indicate gold availability and economic or commercial viability.