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Madison Gold/Copper Property, Montana (June '08 update)

Coronado Resources Ltd. Has an option to acquire a 100% interest in six patented and twelve unpatented mineral claims known as the Madison Gold Property. The property is approximately 35 miles southeast of Butte, Montana near the town of Silver Star. The property contains old surface and underground mine workings. Mining was undertaken from the 1880’s to the 1950's.rent Development
The underground decline has been driven 1,000 feet at a slope of 15° which was designed to access a high-grade zone of oxide gold to Level I and Level II and to lower access to a high grade Copper zone. Drill stations have been placed at stages along the decline to provide for additional drilling from underground to further test the limits of the mineralization. The decline is large enough to accomodate ore trucks and underground drill rigs. A project coordinator, mining engineer and geologist have been engaged to oversee the project. A permit was secured and the underground decline was completed to Level I in 2007.

A crushing plant, power line, compressor and weigh scale have been installed on site to process the gold and copper mineralization encountered in underground development. The company has made three shipments of oxide gold mineralization to the Golden Sunlight Mine for custom milling. High-grade copper is currently being brought to the surface as it is encountered in Level II. The company is continuing enderground development to test the high grade copper limits and gold along strike and to depth.

History

The Broadway Mine had over 6,000 feet of lateral underground workings from a 1,000 foot shaft that had a vertical depth of 750 feet. Production is estimated at 450,000 tons of ore averaging 0.32 oz. (11.0 g/t) gold. In the 1980’s, an exploration drilling conducted northwest of the main Broadway underground workings. This was above a new zone being mined at the 900 level before the mine was closed in 1952. Drill programs were undertaken to outline a resource with an open pit design using lower grade mineralization cutoffs. The majority of the drill holes only tested the mineralization up to 400 feet in depth.

A Geological Summary Report to 43-101 standards was completed in August 2005. The writer concluded that “targets with relatively high grades of gold and copper exist within contact zones at the Madison Gold Property”. The report recommends exploring for continuation of excellent gold and copper grades seen in some holes and notes that many holes ended in gold or copper mineralization without determining the limits of the zone. The report also recommended conducting geophysics and deeper drilling of the porphyry target. Drill programs were undertaken in 2005 and 2006 to expand the high grade gold and copper zones.

Five holes were completed in 2005 with gold and copper intercepts encountered in all five holes. The most exciting results were intercepts of .380 and .354 oz/ton gold over 49 feet and 54.4 feet in two holes and an intercept of 27 feet of over 41% copper in the last hole. For complete assay results from the program see January and February press releases.

Drilling in 2006 tested the vertical and eastern extension of the mineralization of Hole C05 - 6. Additional drilling was undertaken to test the limits of other high-grade zones along the mineralized contact. Eight diamond drilling holes were completed in 2006. see press for results

Goodrich Gulch Property, Montana

The Goodrich Gulch Property consists of nine claims located approximately twenty miles southeast of the Madison Property. The company can aquire a 100% interest in the property by making $400,000 in option payments and expending a total of $650,000 in exploration expenditures over four years.

These claims referred to as the Goodrich Gulch Property have in the past received limited underground development and mining.  Two shipments of 12 and 8 tons made in the past were from hand cobbed ore from small adits. The first in 1934 assayed 1.31 ozs of gold, 3.2 ozs of silver, 1.5% lead and 1% zinc per ton. The second sent in 1935 assayed 0.85 ozs gold, 5.4 ozs of silver, 1.0% Lead, 1.15% Copper and 6.4% Zinc per ton. This is a strong indicator that precious or base metals do exist on the property and has been confirmed by samples taken by the Coronado engineer.

True North Property, Ungava Region, Quebec

The Company acquired a 100% interest in 304 mining claims known as the Raglan 1 Property, comprising 30,775 acres, in May 2003. This property is immediately northwest at Falconbridge’s six year old Raglan Mine site and six outlined nickel/copper deposits. The nickel deposits in the Raglan Camp consist of clusters of sulphide lenses.

The Company entered into an agreement with Novawest Resources Inc, whereby Novawest can earn a 70% interest in the property by expending $620,000 over three years in exploration expenditures. Novawest renamed the claim group the True North Property.