Detailed information http://www.mahdiagold.com/
MAHDIA Gold Corporation
The company gets its name from a popular resource rich mining town located in central Guyana. Historically the central Guyanese region was made popular by the Omai gold mine. This mine produced approximately 4.000.000 ounces of gold from two open pits. Having identified the potential of this region, Mahdia Gold Corp. has acquired three compelling gold bearing concessions, namely, Omai, Tiger River and White Creek.
The company's vision is to be an aggregator of world class gold properties in the country of Guyana. This vision includes maximizing shareholder value and Mahdia Gold Corp. being the premier destination for investors looking to invest in the precious commodity known as gold. Report taken from Guyana Government sampling program on
The Tiger River Gold Property
The Tiger River Gold Property is located in the Mahdia- Konawaruk River area. This area is one of the most productive goldfields of Guyana. The property is 22,040 acres in size which would be about equal to 550 claims if it had been staked in Ontario. The property is situated 30 km SW of the Omai Gold Mine (the Omai goldmine is owned by publicly listed Canadian companies; Cambior 60% and Golden Star Resources 35% and the Government of Guyana 5%
The Omai Mine is the largest mine that has ever been developed in the history of Guyana. Omai is expected to produce about 225,000 ounces of gold per year over its ten year mine life. Proven and probable gold reserves were reported to be 44.3 million tones of 1.60 g/t at a cut-off of 0.70 g/t for hard rock and 0.50 g/t for saprolte and alluvial (4).
At Williams' Hill, located in the SW part of the Tiger River property, a shaft was suck on a 3ft to 4 ft wide quartz vein. At Dazier Creek, Williams (1935) reported quartz and ferruginous laterite "grading" or eluvial detritus which carried gold of local origin. Some hand picked material from this vein yielded 3.0 oz/t Au.
Very significant gold occurrences have been recorded. For example, there is the mining of a paleo-channel at Klondyke Hill which is centrally located on the property. It is reported that 1,000 feet of adits were driven during 1905 and 1906. This activity produced 70 to 80 ounces of gold per month by crushing the cemented gravels by hand and recovering the gold in a sluice (2)
In 1947, a 10,000 ft drilling program intersected widely sheared volcanic rocks containing quartz veining and sulphide mineralization. The drilling campaign fallowed gold discoveries in quartz veins at Dazier Creek where also found at Williams Creek and Fate Creek. The best assay from surface sampling was better than 1.0 oz/t gold over a 3 ft width. Another creek located only 1,000 ft NW of Williams Creek was the site of a former hand- working operation of quartz veins rich in gold. The drill log reports (ddh319) a section of interesting mineralization associated with sulphides over a substantial width (no assays reported).
Based on visual estimates, the Goodhope Creek in the vicinity of its intersection with the road and the Dazier Creek area, show promise of economic gold mineralization. Phyllites outcropping in the Goodhope Creek area average 0.1 oz/t gold/yd3
over 40ft widths. Mineralization extends into quartz- veined epidiorite with an average grade of 0.075 oz/t gold/yd3.
The auriferous phyllites are known to occur at Fate Creek and Williams Creek.
An east-west trending zone of generally low grade but consistent mineralization was defined in the Dazier Creek area where the gold occurs mainly in the weathered Kaolinized material bordering quartz- bearing phyllites, which are also auriferous. Coarse gold was found in the weathered in the zone with inferred reserves of at least 2.7 million yd3.
Good potential exists for lateral continuation of the gold mineralization to the workings on Williams Hill.
In the 1971, a detailed, grass-roots of the rich gold occurrences of the tributaries of the Tiger River was undertaken by the Government of Guyana Geological Surveys and Mines Department(1)
. This survey examined the area containing the Johannes, Williams, Fate, and Dazier Creeks. The entire survey area is completely contained within the boundary of the Tiger River Gold Property. Inasi and Gibson of the Guyana Geological Survey prospected a 2.5 sq. mi, area enclosed in the southwest corner of the property. Two areas with open pit possibilities were outlined in the Dazier and Goodhope Creek heads respectively. Between these two areas and along strike, laterite covered hills has hampered prospecting in the past and excellent potential remain in the general area. The report from this survey describes many of the old underground and surface workings found in this area. In Williams Creek head, at least seven adits and one shaft were driven. While most of these adits had collapsed, it seemed that some adits went deep into the hill. It is estimated that about 500 feet of adits remained open for further sampling and prospecting. One tunnel heading into the Williams Creek section returned the following gold values as reported by the Financial Post of August 9, 1947
0.65 oz over 1.3 ft
1.02 oz over 2.0 ft
1.64 oz over 1.7 ft
17.70 oz over 1.0 ft
9.30 oz over 1.2 ft
9.25 oz over 1.4 ft
In the Dazier Creek area tunnels were discovered that cross-cut the numerous quartz veins in the area. It was locally said that nuggets were recovered from this area of Dazier Creek. The vein zone at Dazier Creek was established to be greater than 2000 ft long by the authors of the survey. The surrounding areas are laterite-covered hills which have hampered prospecting, thus, excellent exploration remains over most of the property.
As can be seen in the map provided with this report, the Tumatumari Ridge which strikes in a NE-SW direction cuts through the middle of the property. This main is the extension of the great Omai- Tumatumari-Eagle Mountain dyke(5)..
Most of the gold on the property seems to be associated with this intrusion. BACKGROUND
Guyana is located in the northeast of South America and has been the site of mineral exploration and mining activities for gold and diamonds since the late 1800's. Most of the mining activities were aimed at alluvial and eluvial deposits. Some mining of in-situ gold-bearing quartz veins have been sometimes found but were mostly worked by hand with crude tools.
Foreign companies were attracted to Guyana during the period of 1940 to 1960. These companies (e.g. British Guyana Consolidated, Anaconda, Tiger River Mines) directed most of their exploration efforts in the search for single, small, high- grade reefs and overlooked the possibility of finding lower grade, higher volume ore deposits.
The majority of foreign mineral exploration investment ended in the early 1970's due to political instability, but, since the end of the 1980's, mining companies have returned, attracted by favorable investment policies and the huge, practically untouched potential for gold and diamond deposits in Guyana.
In the past recent years, several international mining companies, including major companies and junior mining companies like Golden Star, Eastern Caribbean, Overseas Platinum, SNC, Red Butte Resources, and Cathedral Gold have been working to establish develop and mine gold and diamond deposits in Guyana.
Omai is one of South America's largest gold mines. Omai has demonstrated the enormous potential of mining primary gold occurrences in highly weathered laterites and saprolites overlying quartz veins, stockworks and shear zones. This large open pit mine reflects similar geology found in the Kilometer 88 Mining District where there is historical production and where highly mineralized regional structures have been identified over many kilometers. One world class gold discovery of note in the Kilometer 88 Mining District is Placer Dome's (70%) Las Christinas deposit containing a minimum of 5.2 million ounces of gold with a gross value of about $2 billion.
From a geological point of view, the Guiana Shield, in which the greenstone belt is located, is a typical Proterozic greenstone belt, rich in gold, that trends throughout Venezuela, Guyana, Surinam and into French Guyana. It may eventually prove to host several major, world class deposits.
The gold property which has been acquired is underlain by a greenstone belt (i.e. volcano-sedimentary rocks) and shows excellent potential from the location of old alluvial and elluvial gold workings. Favourable structures and indications of local sources of gold increase the potential of this property. This greenstone belt extends from Venezuela and to French Guyana. In Venezuela, the Kilometer 88 Mining District has been described by geologist as a "major gold bonanza".
In conclusion, the Guiana Sheild which runs throughout Guyana has already proven to be a significant gold producing area. Given the favourable political situation, the willingness of the Guyana geology and Mines Commission to offer all available data to foreign companies and the favourable geological setting makes Guyana an extremely attractive country in which to invest. The fact that alluvial and elluvial are so numerous would naturally lead one to believe that numerous, significant in-situ
deposits of financial merit will be found.