Mahdia Gold Corp.
CNSX : MGD

Mahdia Gold Corp.

May 09, 2013 15:51 ET

Mahdia Gold Corp (CNSX:MGD) Mahdia Gold Corp Announces Gold Results from Phase 1 Test Pitting

TORONTO, ONTARIO--(Marketwired - May 9, 2013) - Mahdia Gold Corp. (CNSX:MGD) (the "Company" or "Mahdia") is pleased to announce the analytical results from phase 1 test pitting in the Wenot East alluvial target, located within the Roraima mining permit area (the "Roraima Area") in Guyana.

The Roraima Area is located inside the Omai Prospecting license area and is held for development purposes in a Mining Permit by Roraima Investment & Consulting Services (Guyana) Inc. Pursuant to a number of Agreements and Power of Attorney, Mahdia holds control over the proceeds from the Roraima Area. This 534 acre area was previously mapped as a paleochannel with maximum depths to around 25 meters. The depths are based on historic diamond drilling that tested the underlying bedrock for gold mineralization. Mahdia's management believes this gold bearing paleochannel presents an opportunity for accelerated production using low cost bulk mining methods and gravity processing technology. The grade, geometry, and optimal recovery methods to be considered in this program are the subject of an ongoing work program, including test pitting and sampling as reported herein. Using excavators, the work is limited to approximately seven meters in depth below the surface. Complete definition of the target will require systematic drilling with tools suitable for this type of river gravels, sandy and clay - rich layers at and below local water table. Artisanal mining during 2011 also recovered diamonds from this material and diamond recovery will be considered as part of this study.

Phase 1 sample sizes ranged from 1387 to 3830 grams. The samples were submitted with secure chain of custody to Activation Laboratories' Certified sample preparation and gold assay facility in East Coast Demerrera, Georgetown, Guyana. The samples were dried, sieved to separate Tyler Mesh size fractions from +12 to - 200, 100% pulped and subject to fire assays. The assayed weight of each size fraction, and the corresponding gold values, were utilized to estimate the grade in the material and to consider grain size distribution for potential process considerations.

The results confirmed the presence of gold in all size fractions with highest concentrations in the size 150 microns to 180 microns (Tyler Mesh 100) and 150 microns to 106 microns (Tyler Mesh 140).

Mesh Size Microns Min Gold Value (grams/dry tonne ) Max Gold Value (grams/dry tonne )
+20 850 0.00 0.71
+80 180 0.00 1.91
+100 150 0.00 9.51
+140 106 0.00 10.13
+200 75 0.00 5.31
-200 less than 75 0.07 1.15

The weighted mean value of all 34 samples, excluding check samples, blanks, and standards, and representing an area of irregularly distributed test pits in a 50 x 150 meter area with depths from surface to seven meters, is 0.9505 grams per dry tonne. As work proceeds, modeling and process design will emphasize recoverable value in grams of gold per bank cubic meter, and systematic measurement of in situ density will be important. The total gold content per bank cubic meter will be about 50% higher than that cited as grams per tonne. These concentrations, in the context of bulk materials handling and efficient gravity recovery, strongly support the continuing evaluation and complete delineation of this substantial target. This program will include systematic test pitting and drilling as cited herein in conjunction with recovery studies, consideration of diamond values and recovery, and optimal operating tools. The objective of this program is to form the sound basis for accelerated development and production of this target. No NI 43-101 compliant resource has been estimated for this material, and the data currently available is not sufficient to support such an estimate.

"I am encouraged that these results have begun to verify the historical data we have been able to piece together," said Andre Douchane, President and CEO. "While we are not at a stage to be able to publish an alluvial resource, we continue to work towards that goal. The Company plans to use the results from phase 1 as a guide for its plan to step up production to the 200 to 300 oz / month rate over the next several months."

The Company's Qualified Person, David Bending, P.Geo, Executive VP Exploration, and Director of Mahdia, has designed and evaluated the test work and is responsible for the technical content of this news release.

About Mahdia Gold Corporation

Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.

The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States.

Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.

Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.

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