|By Marketwired .||
|May 9, 2014 10:51 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 05/09/14 -- Mahdia Gold Corp. (the "Company") (CNSX: MGD) today provided an update on operations at the Company's Omai project in Guyana, South America, as well as continued financing efforts.
Mahdia Gold's JV partners began production in March 2014 with a single gold recovery unit, and by the end of April, a second gold recovery unit was installed. March was a startup month wherein everyone was getting used to the area, equipment, and logistics. The initial gold recovery unit produced approximately 59 ounces in March, all of which was sold through the Guyana Gold Board. April saw a multitude of maintenance issues and equipment breakdowns, which were sorted out and repaired by month end. May started very well, with both recovery units running well until May 5th when a torrential tropical rain storm passed through the Omai area, causing the Omai River to rise rapidly and flood both work areas, causing temporary damage and loss of recovered gold. During the flood, first concerns were for the safety of Roraima's employees. No employees were hurt, or in any danger of being hurt. Most stationary equipment was temporarily flooded, but not permanently damaged. The sluices, that were due to be washed on May 6th, were overtopped by the river flood and much of the sluice's trapped gold was lost to the water current.
Both operations are back operating with the sluices above the storm's high water mark, and we expect to update production numbers soon at the end of this fiscal quarter. Additionally, Mahdia Gold is currently adding alluvial contractors at its 21,000 acre White Creek Property.
Mahdia's management and Directors continue to seek all forms of financing. Management is in discussions with financial firms in Toronto, New York, London, England, and Zurich, Switzerland. In addition to these efforts, the Company is in preliminary joint venture discussions with several other gold companies. While management is guardedly optimistic, there is no guarantee that any of these current efforts will provide the much needed finance to move forward with modern gold recovery technology and away from sluices as a primary recovery unit.
Financing the Company becomes more critical as payments to the Guyanese government begin to come due within the next months. To date, the government has been very accommodating by working with Mahdia's management in restructuring payments to a more manageable schedule for the Omai property. As some payment is coming due within the month, and given the value of this asset to Mahdia, we will continue to seek assistance as needed. All statutory fees and licenses are fully paid and up to date.
About Mahdia Gold Corp.
Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.
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 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 the Canadian Securities Exchange (CSE) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Mahdia Gold Corp.
Andre J. Douchane
President & CEO