THE MAHDIA GOLD STORY
Mahdia Gold Corp. CNSX : MGD
The Omai district was considered one of the largest in Latin America. Cambior reported production of about 3.7 million ounces including the Fenell pit with 2.37 million ounces with an average grade of 1.5 g/t to a depth of 250 meters. The peak annual production was 354,000 ounces
PRODUCTION HAS STARTED AND IS EXPANDING
When I first arrived in Georgetown, Guyana I was not sure what to expect. It has the same feel of the Caribbean Islands but you don't see the modern influence of investment in tourism that is seen in some other countries.The people are very happy to deal with foreign investors and they can see that the true strength and future for Guyana is through these relationships.
I spent the first day meeting with the team from Mahdia Gold Corp and some of the local political figures including the Attorney General and the head of the opposition party. Its great to see how they are available to speak on issues regarding the opening of the Omai Mine. I can honestly say that all of the people I spoke with were 100% behind the opening of the mine, The jobs it will create will affect the communities surrounding the mine. I took a small plane and visited the town of Mahdia and could see how a major mining operation could indeed change the landscape of the region in a positive way. Although the roadways were in need of repair there was no lack of new 4x4 trucks throughout the town from small miners who either work along the river bank or had used sluice boxes near the Omai pits. It felt like a town in the midst of a gold rush.
The Omai Mine is in the heart of the Guyana Gold Shield so its not hard to see gold operations peppered along key areas with access for locals. A small sluice operation can yield a couple of ounces a day for one or two workers to share in. I even heard a group of six men dug a trench on a hill side near the Omai camp and with an 8 inch hose they washed the loose soil down to a group near the base who then filtered out 100 ounces over 5-7 days.
On day three in Guyana I jumped on a small plane with some Mahdia Gold Corp crew who were flying in for an event on the site. We were followed in by local officials, Mahdia Gold executives and some well know people in the game of high finance. I did not get a chance to ask them to sign-off for using their names in the article so it may be best to leave it at that. I can say that a quick Google of some of the players on the ground at the Omai would impress you.
We arrived and toured all of the grounds and buildings and I found most were in great shape. A couple of windows were broken on some of the housing units but with little effort these could easily be used. When you stand on the edge of the pits that are now full of water you get a feel for the size of the operation and what still lies in waiting for the crew to discover. While driving around the site we climbed onto a massive hillside that was actually ore taken out of the pits and stockpiled. There could be upwards of 40-50 million tons of it just sitting there. This was the site where Alan Zaakir and David Bending decided to have the ribbon cutting. There was no brass band and fanfare but to the group of approximately 20 standing there we knew we were part of a historical event at that moment.
But the company only has a current market cap of approximately $5 million. This is where the disconnect comes in as far as the price of gold and those who have it.
This will no doubt be a series of articles that captures the progress on site as well as the ongoing work at other Mahdia Gold Corp projects. The company wants to create value and finance in stages on an as needed basis so that they don't dilute the float at lower levels. There is a good game plan here and I think more people will find out as this moves forward. You can definitely feel the excitement not only at the mine site but in the towns and even the capital.
About Mahdia Gold Corp.
Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.
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DISCLOSURE: I AM INVESTED IN MAHDIA GOLD CORP AND WAS NOT COMPENSATED FOR WRITING THIS ARTICLE.