Mahdia Gold Corp.
CNSX : MGD

Mahdia Gold Corp.

June 29, 2012 14:54 ET

Mahdia Gold Historic Drilling Holes OMU-23 To OMU 46 Including 54.88g/t Across 47 Meters, 682.62 g/t Across 33 Meters and 3.54 g/t Across 87 Meters, Omai Guyana

TORONTO, ONTARIO--(Marketwire - June 29, 2012) - Mahdia Gold Corp. (CNSX:MGD) ("Mahdia"), working with AMEC Earth and Environmental Consultants Inc., wishes to announce that it has been reviewing the heritage of historic drilling results from the Omai Project subsequent to a detailed review of the drilling database which included the drilling results released by Cambior August 3, 2006 (see http://www.sedar.com/CheckCode.do;jsessionid=0000ZTPa_Li_T-pkSmT_RtjI3K2:-1). This program, which consisted of 44 diamond drill-holes, was completed during the period 2006 to 2007. Cambior released the results from holes 1 to 13, with a total of 6,323 meters, but Mahdia has found no further public disclosures. The results were encountered by the technical team during a review and audit of the drilling database. In the interest of timely and complete disclosure, Mahdia is hereby presenting an update and review of these significant results. Some holes did not reach target depth. All of the drill-holes were completed by Major Drilling under the supervision of IAMGold. Due to the volume of data the summary table will be presented in two releases.

The Fennell deposit was mined by an open pit to an average depth of 250 meters, which terminated along a barren diabase dyke cited herein as the "Omai Sill". The Fennell Pit was the main contributor to the Omai gold operation with a cumulative production of 49,082,000 tonnes at 1.50 g Au/t for a gold content of 2.37 million ounces of gold. From its inauguration in 1993, until the end of its operations in the third quarter of 2005, the Omai gold mine was operated as an open-pit operation with a cyanidation and carbon-in-pulp (CIP) processing plant. It is located in Guyana, South America, 160 kilometers south of the capital city of Georgetown. The mine produced over 3.7 million ounces of gold, 1.6 million ounces in excess of the production originally forecast by the feasibility study.

Two holes drilled in 1997 confirmed that the barren diabase dyke (now referred to as the Omai Sill) had a thickness of 180 meters and that the gold mineralized quartz diorite intrusive extended below the Sill. Cambior dewatered the pit in 2006 to perform a surface drilling program from the top of the sill to test the target at depth and identify mineral resources in the context of a potential 6-8000 tonne per day underground mining operation. Cambior had identified a sub-horizontal zoning in the gold mineralization and the drilling was primarily vertical to sub-vertical with some holes angled to define the geometry of the quartz-diorite intrusive at depth. Hole OMU-12 remained within in the quartz-diorite intrusive over a length of 650 m below the barren sill, where it was stopped due to the limitations of the drilling rig. The system remained open to expansion. The reader is referred to the Cambior news release for the original disclosure on holes OMU 1 to OMU 13.

The Cambior program was managed 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. The in-house assay facility at Omai Gold Mines Limited was used as the primary lab. Samples were assayed by fire-assay followed by atomic absorption or gravimetry according to industry standards. In addition, 10% of the pulps from the primary lab were sent to a second certified laboratory for analysis. Consequently, Mahdia considers these results to be very credible despite the fact that no original assay certificates are available to Mahdia at this time. A qualified person has not completed the work necessary to verify the historical estimates as mineral reserves or resource for purposes of National Instrument 43-101. Mahdia is not treating the historical mineral resource estimates as National Instrument 43-101 defined current resources or reserves. The historical estimates should not be relied upon. This property will require considerable further evaluation, which Mahdia's management and consultants intend to carry out in due course. In this context, Mahdia is citing the historic Cambior disclosure only. The readers are also referred to the website for geological cross sections to clarify the context of these drill-holes.

The complete tabulation of the results and the weighted average values of the intercepts with applied cut-off grades of 0.3, 0.5 and 0.8 grams per tonne are set out in the website. The disclosure presents the intercepts calculated using a 0.3 g/t cut-off. This choice of cut-off does not imply application of any economic criterion but was selected to provide a consistent and easily understood data set to the readers.

This table is a summary of the results for holes OMU 23-46 for which data is now available. Holes 1-22 have been presented in the first release due to the volume of information in the tables. The complete data set and calculation of intercepts at cut - off grades of 0.3, 0.5 and 0.8 grams per tonne are available for inspection at www.mahdiagold.com., but for brevity the following guidelines were applied: The cut-off grade is applied so that any three contiguous samples which are below cut - off grade are removed from the interval and subsequent materials exceeding cut - off grade are included in a separate intercept. Any values which exceed 31.0 grams per tonne are capped at 31.0 grams per tonne. The capping procedures applied differ from those used by Cambior because the high grade values are related to a late stage crosscutting vein with a distinct population distribution from the lower and more abundant values of the disseminated diorite hosted material. Both uncapped and capped grades are cited in the selected intervals. The application of these procedures to the data review does not imply an application of rigorous economic screens to the evaluation. This table is presented to introduce the shareholders to these significant historic data which shall be included in the ongoing program of data compilation, audit and verification sampling and drilling, and (when all data are available in form compliant with NI-43-101) a resource estimate.

Mahdia is working through the process of rehabilitating and recovering, as much as possible, the split core from the OMU drilling program or reclogging and re-sampling by diamond saw cutting. Some sections are sufficiently preserved that such audit sampling is possible and the sampled intervals will correspond to the one meter interval split by Cambior in the OMU program. Mahdia is also proceeding with a program of four deep angle drill-holes to test the complete diameter of the Fennel Mineralized system including verification of the volumes previously tested and extension well below and beyond those historic intercepts to test for further expansion of this major mineralized volume.

David Bending, President and Director of Mahdia Gold Corp., reports "Mahdia is advancing its understanding of the geology, substantial size, expansion potential, and hydrology of the Fennel Targets with its drilling and ongoing core and data review. These significant results firmly support our confidence in the importance of the Fennel Targets and the Omai redevelopment program in general."

Mr. Bending manages Mahdia's exploration and development programs and is the Qualified Person as defined by National Instrument 43-101. He supervised the preparation of the technical information in this release.

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.

DRILL HOLE
NUMBER
HOLE FINAL DEPTH (Meters)
From To Width Au g/t Uncapped Au capped
OMU-23 427 151.80 168.00 16.20 1.73 1.73
172.00 194.00 22.00 1.33 1.33
199.00 203.00 4.00 0.50 0.50
209.00 214.00 5.00 2.73 2.73
229.00 235.00 6.00 9.55 5.36
239.00 249.00 10.00 0.79 0.79
254.00 267.00 13.00 1.64 1.64
274.00 278.00 4.00 0.38 0.38
284.00 307.00 22.00 1.50 1.50
326.00 328.00 2.00 0.55 0.55
336.00 374.00 38.00 2.24 2.24
383.00 386.00 3.00 0.44 0.44
OMU-24 920 240.00 246.00 17.00 0.56 0.56
259.00 269.00 10.00 0.72 0.72
272.00 277.00 5.00 0.60 0.60
281.00 350.00 69.00 2.04 2.04
361.00 405.00 44.00 3.51 2.50
409.00 433.00 24.00 1.04 1.04
437.00 460.00 23.00 0.98 0.98
464.00 471.00 7.00 0.88 0.88
474.00 491.00 17.00 1.91 1.91
495.00 567.00 72.00 1.04 1.04
570.00 575.00 5.00 2.58 2.58
653.00 658.00 5.00 3.18 3.18
667.00 675.00 8.00 2.00 2.00
679.00 682.00 3.00 0.47 0.47
685.00 707.00 22.00 0.81 0.81
711.00 725.00 14.00 1.58 1.58
756.00 761.00 5.00 0.50 0.50
782.00 788.00 6.00 0.51 0.51
OMU-25 484 138.65 160.00 21.35 1.25 1.25
164.00 192.00 28.00 1.52 1.52
196.00 202.00 6.00 4.54 4.54
205.00 213.00 8.00 0.54 0.54
217.00 221.00 4.00 0.85 0.85
235.00 243.00 8.00 0.90 0.90
246.00 276.00 30.00 1.08 1.08
281.00 284.00 3.00 0.87 0.87
290.00 316.00 25.00 2.80 2.47
319.00 354.00 35.00 3.17 3.02
367.00 433.00 66.00 2.36 2.36
OMU-26 415 174.00 211.00 37.00 1.46 1.46
214.00 218.00 4.00 0.69 0.69
229.00 273.00 44.00 2.44 2.44
293.00 328.00 35.00 1.30 1.30
333.00 342.00 9.00 0.94 0.94
357.00 376.00 19.00 1.40 1.40
380.00 385.00 5.00 1.02 1.02
401.00 406.00 5.00 0.65 0.65
OMU-27 623 384.00 395.00 11.00 1.13 1.13
483.00 489.00 6.00 0.53 0.53
502.00 507.00 5.00 2.50 2.50
565.00 568.00 3.00 3.34 3.34
568.00 593.00 25.00 0.38 0.38
593.00 597.00 4.00 0.52 0.52
OMU-28 414 163.42 167.00 3.58 2.66 2.66
172.00 195.00 23.00 1.58 1.58
199.00 246.00 47.00 53.88 2.24
246.00 255.00 9.00 0.64 0.64
255.00 308.00 53.00 1.59 1.59
311.00 344.00 33.00 682.62 4.30
347.00 356.00 8.00 1.26 1.26
361.00 368.00 7.00 0.68 0.68
OMU-29 770 343.80 354.00 10.20 0.31 0.31
354.00 410.00 56.00 4.29 1.38
473.00 480.00 7.00 1.80 1.80
484.00 490.00 6.00 4.83 4.83
494.00 500.00 6.00 0.47 0.47
559.00 564.00 5.00 1.40 1.40
581.00 593.00 12.00 0.93 0.93
593.00 610.00 17.00 0.37 0.37
610.00 697.00 87.00 3.54 2.07
759.00 763.00 4.00 0.40 0.40
OMU-30 528 337.10 351.00 13.90 2.95 2.95
354.00 358.00 4.00 1.12 1.12
361.00 388.00 27.00 2.17 2.17
392.00 432.00 39.00 1.33 1.33
432.00 440.00 8.00 0.32 0.32
440.00 445.00 5.00 0.69 0.69
449.00 469.00 20.00 0.77 0.77
480.00 522.00 42.00 1.33 1.33
522.00 528.50 6.50 0.85 0.85
OMU-31 752.5 332.80 339.00 6.20 3.41 3.41
359.00 366.00 7.00 0.71 0.71
372.00 375.00 3.00 0.62 0.62
394.00 400.00 6.00 0.40 0.40
447.00 501.00 54.00 1.85 1.85
527.00 592.00 65.00 1.34 1.34
598.00 667.00 68.00 2.02 1.53
670.00 674.00 4.00 1.29 1.29
678.00 691.00 13.00 0.95 0.95
696.00 752.50 55.50 3.87 3.39
OMU-32 711.5 NO ASSAYS OR SAMPLE DATA AVAILABLE AT THIS TIME
OMU-33 752.5 295.00 302.00 7.00 1.30 1.30
305.00 308.00 3.00 0.80 0.80
318.00 324.00 6.00 1.18 1.18
327.00 332.00 5.00 0.45 0.45
336.00 340.00 4.00 1.53 1.53
336.00 383.00 43.00 0.34 0.34
383.00 386.00 3.00 1.05 1.05
406.00 410.00 4.00 3.75 3.75
452.00 456.00 4.00 1.90 1.90
464.00 468.00 4.00 1.28 1.28
472.00 511.00 37.00 2.40 2.40
538.00 594.00 56.00 0.96 0.96
594.00 632.00 38.00 1.27 1.27
635.00 642.00 7.00 1.46 1.46
650.00 655.00 5.00 0.79 0.79
709.00 712.00 3.00 1.28 1.28
OMU-34 603.5 381.00 415.00 34.00 2.60 2.59
419.00 428.00 9.00 3.38 3.38
432.00 444.00 12.00 1.82 1.82
444.00 453.00 9.00 0.56 0.56
453.00 459.00 6.00 0.86 0.86
462.00 472.00 10.00 1.73 1.73
493.00 520.00 27.00 1.58 1.58
526.00 531.00 5.00 1.37 1.37
561.00 587.00 26.00 1.46 1.46
590.00 598.00 8.00 0.56 0.56
OMU-35 966.9 314.85 324.00 9.15 0.58 0.58
383.00 421.00 38.00 1.38 1.38
429.00 441.00 12.00 2.37 2.37
444.00 462.00 18.00 1.41 1.41
465.00 473.00 8.00 2.39 2.39
473.00 482.00 9.00 0.58 0.58
482.00 488.00 6.00 0.48 0.48
496.00 501.00 5.00 1.48 1.48
501.00 509.00 8.00 1.07 1.07
509.00 541.00 32.00 3.93 1.70
544.00 548.00 4.00 1.31 1.31
552.00 607.00 55.00 0.92 0.92
610.00 637.00 27.00 5.03 3.49
653.00 667.00 14.00 20.42 4.99
679.00 700.00 21.00 1.45 1.45
706.00 713.00 7.00 0.37 0.37
717.00 726.00 9.00 0.60 0.60
729.00 742.00 13.00 0.44 0.44
762.00 769.00 7.00 0.40 0.40
773.00 776.00 3.00 2.64 2.64
794.00 807.00 13.00 1.76 1.76
807.00 816.00 9.00 0.37 0.37
816.00 823.00 7.00 1.13 1.13
827.00 837.00 10.00 0.81 0.81
841.00 845.00 4.00 1.20 1.20
868.00 872.00 4.00 0.43 0.43
877.00 888.00 11.00 2.90 2.90
892.00 901.00 9.00 0.39 0.39
913.00 916.00 3.00 0.63 0.63
932.00 955.00 23.00 0.76 0.76
958.00 966.90 8.90 0.53 0.53
OMU-36 602.2 408.00 475.00 67.00 3.39 3.38
478.00 488.00 10.00 1.48 1.48
562.00 571.00 9.00 1.98 1.98
OMU-37 663.5 346.70 353.00 6.30 0.76 0.76
357.00 361.00 4.00 0.73 0.73
365.00 374.00 9.00 0.84 0.84
378.00 390.00 12.00 1.10 1.10
393.00 416.00 23.00 3.18 3.18
420.00 427.00 7.00 1.13 1.13
431.00 439.00 8.00 0.80 0.80
442.00 454.00 12.00 0.93 0.93
494.00 555.00 61.00 1.98 1.98
558.00 593.00 35.00 1.32 1.32
619.00 622.00 3.00 1.42 1.42
630.00 634.00 4.00 4.58 4.58
OMU-38 672 376.34 428.00 51.66 1.67 1.67
447.00 455.00 8.00 10.39 6.58
459.00 494.00 35.00 2.64 2.64
498.00 514.00 16.00 0.71 0.71
517.00 588.00 71.00 1.52 1.52
591.00 605.00 14.00 1.58 1.58
OMU-39 960.5 357.90 423.00 65.10 2.28 2.28
426.00 439.00 13.00 1.48 1.48
448.00 452.00 4.00 2.73 2.73
456.00 503.00 47.00 1.17 1.17
555.00 562.00 7.00 1.42 1.42
571.00 575.00 4.00 1.32 1.32
603.00 609.00 6.00 2.36 2.36
623.00 626.00 3.00 0.42 0.42
645.00 674.00 28.95 0.82 0.82
687.00 698.00 11.00 1.19 1.19
707.00 712.00 5.00 0.65 0.65
751.00 754.00 3.00 1.10 1.10
768.00 776.00 8.00 0.42 0.42
785.00 795.00 10.00 12.65 3.69
798.00 807.00 9.00 2.08 2.08
811.00 819.00 8.00 0.95 0.95
823.00 832.00 9.00 2.21 2.21
843.00 856.00 13.00 0.69 0.69
886.00 901.00 15.00 1.12 1.12
901.00 927.00 26.00 0.35 0.35
927.00 935.00 8.00 0.68 0.68
OMU-40 789.5 342.00 350.00 8.00 1.19 1.19
363.00 366.00 3.00 0.56 0.56
373.00 378.00 5.00 1.34 1.34
386.00 400.00 14.00 1.27 1.27
410.00 470.00 60.00 1.38 1.38
474.00 479.00 5.00 0.59 0.59
490.00 578.00 88.00 1.81 1.81
581.00 613.00 32.00 1.00 1.00
617.00 623.00 6.00 4.04 4.04
627.00 646.00 19.00 0.61 0.61
646.00 653.00 7.00 0.33 0.33
653.00 660.00 7.00 0.70 0.70
660.00 669.00 9.00 0.48 0.48
669.00 678.00 9.00 2.32 2.32
684.00 708.00 24.00 0.85 0.85
711.00 745.00 34.00 1.49 1.49
752.00 768.00 16.00 0.53 0.53
772.00 779.00 7.00 0.72 0.72
OMU-41 978.3 332.09 349.00 16.91 2.75 2.75
352.00 388.00 36.00 1.57 1.57
391.00 420.00 29.00 2.41 2.41
436.00 452.00 16.00 2.51 2.51
455.00 488.00 33.00 2.75 2.17
488.00 496.00 8.00 0.65 0.65
496.00 510.00 14.00 0.56 0.56
515.00 555.00 40.00 1.17 1.17
558.00 648.00 90.00 1.34 1.34
651.00 681.00 30.00 1.13 1.13
707.00 725.00 18.00 0.91 0.91
729.00 734.00 5.00 1.07 1.07
737.00 743.00 6.00 6.54 6.51
746.00 781.00 35.00 2.48 1.87
789.00 802.00 13.00 2.82 2.82
802.00 815.00 13.00 0.40 0.40
815.00 822.00 7.00 2.53 2.53
825.00 834.00 9.00 1.49 1.49
839.00 858.00 19.00 0.61 0.61
864.00 868.00 4.00 0.56 0.56
884.00 890.00 6.00 1.76 1.76
893.00 902.00 9.00 0.57 0.57
907.00 915.00 8.00 6.55 6.37
920.00 944.00 24.00 0.80 0.80
OMU-42 589.65 348.00 351.00 3.00 4.70 4.70
355.00 359.00 4.00 1.04 1.04
372.00 385.00 13.00 0.43 0.43
392.00 402.00 10.00 1.45 1.45
405.00 418.00 13.00 1.53 1.53
421.00 428.00 7.00 4.66 4.66
432.00 442.00 10.00 1.64 1.64
446.00 459.00 13.00 1.09 1.09
462.00 473.00 11.00 2.44 2.44
477.00 489.00 12.00 7.20 5.01
495.00 498.00 3.00 0.55 0.55
510.00 515.00 5.00 0.37 0.37
522.00 527.00 5.00 3.13 3.13
536.00 542.00 6.00 0.85 0.85
542.00 555.00 13.00 0.31 0.31
555.00 559.00 4.00 1.36 1.36
OMU-43 785.89 314.20 354.00 39.80 0.33 0.33
354.00 357.00 3.00 1.18 1.18
362.00 369.00 7.00 0.82 0.82
381.00 419.00 38.00 1.85 1.85
422.00 468.00 46.00 1.31 1.31
471.00 474.00 3.00 1.97 1.97
477.00 480.00 3.00 0.66 0.66
505.00 511.00 6.00 1.26 1.26
516.00 522.00 6.00 1.36 1.36
561.00 569.00 8.00 0.99 0.99
573.00 613.00 40.00 1.67 1.67
617.00 631.00 14.00 1.77 1.77
634.00 637.00 3.00 1.69 1.69
699.00 705.00 6.00 1.17 1.17
710.00 714.00 4.00 0.43 0.43
728.00 731.00 3.00 0.33 0.33
735.00 742.00 7.00 0.46 0.46
OMU-44 791.6 381.00 392.00 11.00 1.38 1.38
395.00 400.00 5.00 2.41 2.41
403.00 419.00 16.00 1.03 1.03
422.00 441.00 19.00 1.21 1.21
448.00 454.00 6.00 2.28 2.28
459.00 467.00 8.00 0.61 0.61
487.00 544.00 57.00 2.64 2.64
547.00 598.00 51.00 1.99 1.99
601.00 619.00 18.00 1.60 1.60
622.00 639.00 17.00 1.72 1.72
644.00 654.00 10.00 0.70 0.70
657.00 660.00 3.00 2.12 2.12
666.00 673.00 7.00 0.88 0.88
679.00 703.00 24.00 2.47 2.47
708.00 728.00 20.00 0.66 0.66
750.00 758.00 8.00 1.03 1.03
762.00 765.00 3.00 0.63 0.63
774.00 779.00 5.00 0.60 0.60
782.00 791.60 9.60 0.41 0.41
OMU-45 756.5 343.00 349.00 6.00 0.65 0.65
381.00 403.00 22.00 2.10 2.10
411.00 427.00 16.00 1.35 1.35
430.00 452.00 22.00 0.81 0.81
456.00 475.00 19.00 1.14 1.14
486.00 575.00 89.00 1.67 1.67
578.00 594.00 16.00 0.94 0.94
598.00 626.00 28.00 0.82 0.82
630.00 702.00 72.00 1.71 1.67
705.00 721.00 16.00 1.05 1.05
724.00 732.00 8.00 0.59 0.59
735.00 748.00 13.00 0.54 0.54
OMU-46 605.8 291.45 333.00 41.55 2.32 2.32
337.00 342.00 5.00 0.90 0.90
349.00 355.00 6.00 1.65 1.65
355.00 363.00 8.00 0.63 0.63
363.00 381.00 18.00 0.82 0.82
391.00 426.00 35.00 2.46 2.39
430.00 465.00 35.00 4.94 2.90
468.00 495.00 27.00 1.13 1.13
498.00 510.00 12.00 0.51 0.51
513.00 522.00 9.00 1.08 1.08
537.00 540.00 3.00 0.48 0.48
547.00 555.00 8.00 1.32 1.32
558.00 568.00 10.00 0.50 0.50
571.00 575.00 4.00 0.41 0.41
580.00 586.00 6.00 1.13 1.13

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