TORONTO, ONTARIO -- (Marketwire) -- 01/24/13 -- Mahdia Gold Corp. (CNSX: MGD) (the "Company") is pleased to announce that it has entered into a series of agreements with Roraima Investment & Consulting Services (Guyana) Inc. ("Roraima"), a related party, wherein the Company has released 587 acres ("the Shallow Flats Area") to Roraima, out of the total 28,646 acres currently held by the Company.
The arrangement through power of attorney allows the Company to maintain rights to the Shallow Flats Area, while Roraima utilises its permit to begin immediate mining and development of the shallow pits. No anticipated quantities if any, of any gold production in the Shallow Flats Area can be projected or estimated. There are no guarantees that economic quantities of gold will be found in the Shallow Flats Area., however, Roraima will be starting the process of immediate development of shallow pits for production of gold from the Shallow Flats Area. Alongside the said mining activities, the Shallow Flats Area will be subjected to ongoing, sequenced and systematic exploration and development.
The Shallow Flats Area has been subject to historic and recent diamond drilling which originally concentrated on the bedrock and artisanal mining since 2010. No National Instrument 43-101 compliant resource has been defined in this area but based on the geological and mining history, management believes it is a priority target area for development.
Contemporaneous with any immediate initial gold recovery process, a wide scope of technical work will use various gravity recovery systems to establish the most viable means of increasing productive work emphasizing gold and diamond recovery and progressive expansion through scalable mechanization, subject to results from each stage. The development of shallow pits in "the Shallow Flats Area" is designed to access possible financial opportunities during the longer term exploration and development stage.
The Co-Chairman of the Board, Mr John Reynolds stated: "The board is very pleased to have successfully structured this transaction for nominal consideration and we hope to see sufficient positive cash flow in the short term to cover all overhead and for ongoing National Instrument 43-101 compliant exploration and in so doing continue to enhance shareholder value."
The Company's qualified person, David Bending, the President of Mahdia, has reviewed the technical content of this news release.
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 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.
Mahdia Gold Corp.
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