Mahdia Gold Corp.
CNSX : MGD

Mahdia Gold Corp.

June 26, 2012 14:27 ET

Mahdia Gold Corp. Mobilizes Two Additional Diamond Drills to Complete 6,500 Meters of Drilling Along the Wenot Trend

TORONTO, ONTARIO--(Marketwire - June 26, 2012) - As part of its ongoing drilling program Mahdia Gold Corp ("Mahdia") (CNSX:MGD) announces it has mobilized two additional diamond drills to complete 6500 meters of confirmatory and twin drilling along the Wenot Trend, Omai, Guyana.

Mahdia has contracted Songela Inc and Master Drilling Services to mobilize two diamond drill rigs (brand 'Longyear Super 38') to complete a program of 6500 meters of diamond drilling in twelve to fifteen holes with projected depths between 150 and 600 meters in the area previously defined and mined as the 'Wenot Trend'. The objective of this program is to confirm the potential for an updated optimization of the Wenot Mineralized system, which produced approximately 1.4 million ounces with average recovered grades of 1.4 grams per tonne during the period 1995 and 2001 after discovery and development drilling by Golden Star Resources, Placer Dome Gold and Cambior Mining during the period 1988 to 2009. Three of the confirmed holes in this program are placed to twin previously drilled intercepts in the Wenot West Area, while the remainder have been placed to confirm and expand on the known mineralized trend in the Wenot West and below the Wenot Pit in sites in which the current topography renders detailed twinning impossible. The historic results show significant mineralized material beyond the mined volumes and potential for expansion with an updated economic model utilizing historic data and the planned confirmatory work. The Golden Star, Placer Dome and Cambior programs were managed by Qualified Persons (as defined by National Instrument 43-101) using well established Analytical Quality Assurance Programs to control and assure the analytical quality of assays including the systematic addition of blank samples, reject and pulp duplicates and certified standards to each batch of samples sent for analysis. Because no original assay certificates are available to Mahdia at this time the data is not compliant to the standards of NI 43-101.

Mahdia is working through the process of rehabilitating and recovering, as much as possible, core from the Wenot drilling program for relogging and resampling to upgrade the data to NI 43-101 compliance. The condition of this core is variable and the extent to which the historic intervals can be confirmed is uncertain.

This document and the data summarized herein have been prepared by David Bending, M.Sc. P.Geo, a Qualified Person pursuant to NI 43-101.

Alan Zaakir, Chairman of Mahdia stated "Mahdia Gold Corp is excited about this phase of our drilling program. The company has benefitted from a wealth of historic data from Cambior and IamGold the previous operators of the mine. We look forward to a successful drilling program".

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 Corporation 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.

Contact Information