Mahdia Gold Corp.
CNSX : MGD

January 05, 2011 17:23 ET

Mahdia Gold Corp Signs Option Agreement for White Creek Gold Property in Guyana

MISSISSAUGA, ONTARIO--(Marketwire - Jan. 5, 2011) - Mahdia Gold Corp (CNSX:MGD) is a publicly listed company trading on the Canadian National Stock Exchange (CNSX) under the symbol MGD. The company's website is: www.mahdiagold.com. The website of the CNSX exchange is www.cnsx.ca.

Mahdia Gold Corp has entered into an Option Agreement to acquire one hundred percent interest in the White Creek mineral property in Guyana.

The White Creek property was originally explored by the BHP World Discovery Group in 1998. Regional stream sediment sampling identified a number of drainage basins radiating from the White Creek property that returned anomalous gold. BHP then conducted a widely spaced (1.4 km x 400 metre) soil geochemistry survey and identified a large gold in soil anomaly. However, BHP never conducted any further work on this property. This gold anomaly is considered to be the eastern extension of the Arakaka trend, a northeast-trending mineralized and structural corridor within the Barima-Waini District of Northwestern Guyana. In 2007, StrataGold and Newmont re-sampled the drainage basins as well as one of the historical BHP soil lines on the White Creek property and confirmed the presence of significant gold values in both stream sediments and soil anomalies over > 6.0 km in length. In late January 2008, road access was improved. The White Creek property is located within a known mineralized gold area in Guyana and Mahdia Gold is pleased to bring this asset into the company.

Mahdia Gold Corp is at present concluding the transaction and expects to have it done very soon. The company will issue new information at that time. Mahdia plans an exploration program on the White Creek property in 2011 to identify its value.

Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Mahdia Gold Corp currently has 43,109,820 shares outstanding.

NO SECURITIES REGULATORY AUTHORITY OR STOCK EXCHANGE HAS APPROVED OR DISAPPROVED OF THE INFORMATION CONTAINED IN THIS PRESS RELEASE.

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