Mahdia Gold gets licence to reopen Omai Mines

January 12, 2012 | By KNews | Filed Under News

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Mahdia Gold Corporation (MGC) has received approval from the Guyana Geology and

Part of the compound at Omai.

Mines Commission (GGMC) to prospect for gold and precious metals in the Omai Mines, Region Seven.
This was announced Tuesday in a media release by the company. With its prospecting licence, Mahdia Gold will now be able to open the Omai Mines site and begin work on the property.
With the price of gold skyrocketing, the opportunities for the Mahdia Gold Corp could be lucrative. The Mahdia Gold executive team plans to visit the Omai Mines site within the next two weeks to begin activity on the property.
Further exploratory drilling into the bottom of an open pit suggested that there could be an additional deposit of 1.4 million ounces of gold still available for mining by the company.
This is data which was derived from just one pit while the other areas on the mining concession remain to be evaluated.
According to Mahdia Gold Corp, the company is looking forward to a long term successful programme at Omai and is hopeful that the exercise will result in increased yields.
Mahdia Gold is currently reviewing a draft of the ‘geological report.’ A final version will be published immediately upon completion. This report focuses on the Omai mines and will review past performance, current conditions and future potential.
The geological report will serve as a guide to Mahdia Gold as it commences operations on the Omai Mines.
Omai Gold Mines has had a colorful history. Commissioned in 1993, Omai Gold Mines Limited was a consortium between a Canadian company and the government of Guyana. They carried out operations at the Omai Gold Mines with funding from the World Bank and International Monetary Fund.
Located in the Essequibo region, Omai was one of the largest open pit gold Mines in the world. In 1995, however, waste from the mines overflowed the retention dam, and over five days released four million cubic meters of cyanide-bearing tailings into the river that eventually ended up in the Essequibo River.
During that crisis former President Cheddi Jagan declared a stretch of 50 contaminated miles of the Essequibo River as an environmental disaster zone.
The mining company eventually shut down its operations in 2005 and its holdings passed from Cambior Resources to IAMGOLD before it was placed into the hands of MGC.
http://thetradersdigest.blogspot.com/2011/12/what-i-will-be-watching-in-2012.html

Disclosure: I am invested in Mahdia Gold Corp and may add to my position or sell my position depending on my investment needs in 2012.
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