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THIS STOCK IS UNDISCOVERED ST0CK GEM ( MDEX.PK)

 

Watch out the st0ck go crazy on Monday morning

 

February's Feature Company...

Madison Explorations, Inc.

Symbol: MDEX.PK

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

favorable.

 

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.