Mahdia gold expands land package.

I have been without decent internet access for the last little while and for this reason, have not felt to motivated to write many posts, although some very interesting things have happened since my last wqrite up.

I just wanted to bring this release to the attention of any of my readers, as I have been following the Mahdia story for some time.

Anyways, the jist of it is is that MGD, the company which holds the old omai mine have expanded their land package by almost 4 times. In the comming days I plan to write a more detailed write up on the company, its potentials, its properties, and its failures so far. It is nice to see some steps forward from this company.

PS: As I may not get a chance to write something on CXB, it has recently shot up in price and is very close to its gap of .24. I hope to see it back to its mid 40s form in the coming months.


Mahdia Gold Corp (CNSX:MGD) Announces Land Expansion in Omai District

Mahdia Gold Corp (CNSX:MGD) Announces Land Expansion in Omai District

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2012) - Mahdia Gold Corp. (the "Company") (CNSX:MGD) is pleased to announce the first phase of the expansion of its land holdings in the Omai/Essequibo River area with the execution of an option to acquire 100% of the mineral rights represented by 18 (eighteen) Prospecting Permits Mediums Scale with a total aggregate surface area of 21,406 acres (the "OMAI EXPANSION"). The agreement, negotiated with South American Mining Inc. ('Vendor'), a private Guyana Company grants, through powers of attorney pursuant to Guyana law, the right to explore and, as warranted convert the rights to Mining Permits or Mining Licenses and thereafter acquire the entire land holding. The transaction represents a significant expansion of the boundaries of the Company's current assets in the Omai District and the corresponding exploration and development opportunity thereupon. OMAI EXPANSION is located in a well known gold bearing region and will be evaluated as part of the Company's ongoing redevelopment of the Omai Prospecting License.

This expands the Company's land for exploration and mining purposes, by a multiple of almost 4 times to 28,646 acres in the same area.

The additional exploration opportunity covers regional geological contacts and gold target in bedrock, oxide/ saprolite and alluvial / colluvial environments which the Company's technical team has selected as high priority. Management of the Company expects this expansion of opportunity to provide significant enhancement in shareholder value during the medium and long term development of the district. OMAI EXPANSION was closed to modern exploration throughout the previous life cycle of the Omai and exploration work will be coordinated with optimization of the Company's main holdings without the obligation of minimum exploration expenditures associated with Prospecting Licences.

Including an initial payment of Fifty Thousand United States Dollars ($50,000.00) the total consideration for the post option acquisition of 100% of OMAI EXPANSION, will be One Million United States Dollars ($1,000,000.00) and Two Million (2,000,000) Shares of Mahdia Gold Corp.

Sabina confirms grade and thickness

A nice release from Sabina. Its always nice, as a shareholder, to see one of your investments continually put out strong results. This is a great way to end the season and I have much excitement for the March drill season. That being said, the press release notes that drill results will continue to be released through out the fall.

Its nice to see some more results from the Umwelt deposit which, along with their Llama deposit, are the big two at the Back River Project.

NEWS RELEASES		<< previous | next >>

SABINA REPORTS DRILLING CONFIRMS THICKNESS AND GRADE AT BACK RIVER PROJECT, NUNAVUT

Sabina Reports Drilling Confirms Thickness and Grade at Back River Project, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2012) - Sabina Gold & Silver Corp. (TSX:SBB) -

Hole 12GSE234 returns 10.31 g/t Au over 39.85m in G2 Zone
Hole 12GSE238 returns 18.18 g/t Au over 25.7 m below proposed Umwelt Open pit
Hole 12GRL076 at Locale 2 at George returns 12.84g/t over 23.00m

Sabina Gold & Silver Corp. is pleased to announce more assay results from holes drilled at its Goose and George properties as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.

Work at Back River in 2012 is heavily focussed on infill, geotechnical and extension drilling at the existing deposits in support of the upcoming Back River Pre-Feasibility Study.

In particular, work has focussed on the extension of the Umwelt deposit at depth. Planned conversion holes both in the G2 Zone and approximately 200 metres below the proposed Umwelt pit continue to demonstrate the continuity of the deposit.

12GSE238, a planned resource conversion drillhole on section 4000U returned 18.18 g/t Au over 25.7 m (including 1.85m @ 140.82g/t Au). It intersects the upper G2 Zone between a wide low-grade intersection 60m up-dip (11GSE049: 18m @ 2.04g/t), and a wide high-grade zone 110m down-dip (12GSE217, released in August 2012: 16.1m @ 51.93g/t).

Hole 12GSE234 was also a planned resource conversion hole, on section 4250U, returning 10.31 g/t Au over 39.85 m (including 0.95m @ 72.46g/t Au). The hole intersected the G2 zone approximately 37m up-dip from 11GSE123 which had comparable grade/width (32.95m @ 6.85g/t).

"We continue to be excited about the potential of the Umwelt deposit to depth. Results from the G2 Zone in particular continue to be very encouraging and we look forward evaluating our 2012 work to identify the potential impacts it will have on the upcoming pre-feasibility study," said Rob Pease, President & CEO. "While we continue to drill at Back River, work is winding down for the season and we expect to close our camps in early October. Drilling results will continue to be reported through the fall."

Umwelt Drilling Highlights

Hole Id	From (m)	To (m)	Length (m)	Au (g/t)	Zone Name
12GSE234	529.60	530.25	0.65	1.30	Main East
	533.85	535.00	1.15	1.13	Main East
	540.30	580.15	39.85	10.31	Main East
Including	541.80	542.95	1.15	32.17	Main East
Including	577.05	578.00	0.95	72.46	Main East
12GSE238	654.60	656.60	2.00	8.19	Main East
	686.50	687.35	0.85	47.77	Main East
	695.25	720.95	25.70	18.18	Main East
Including	701.10	702.20	1.10	42.51	Main East
Including	715.50	717.35	1.85	140.82	Main East

True widths have not yet been determined.

George Conversion Drilling

Conversion drilling at the George property continues to yield significant gold grades and widths from the Locale deposits where two diamond drill rigs are currently active. Initial assays continue to demonstrate resource confidence, while indicating a high potential for resource expansion at depth, along strike, and within parallel zones. Encouraging results from recent drilling intercepts at the Locale 2 deposit highlighting these opportunities include holes 12GRL062 (4.11g/t over 22.00m), 12GRL065 (4.18g/t over 7.40m), 12GRL070 (4.76g/t over 11.65m and 1.82g/t over 42.20m) and 12GRL076 (12.84g/t over 23.00m). Drilling at the George property is envisioned to complete during the first week of October.

Locale 2 drilling Highlights

Hole Id	From (m)	To (m)	Length (m)	Au (g/t)	Zone Name
12GRL062	139.00	140.00	1.00	1.22	Locale 2
	171.00	173.00	2.00	1.61	Locale 2
	183.00	184.00	1.00	2.54	Locale 2
	238.60	240.00	1.40	2.50	Locale 2
	297.00	319.00	22.00	4.11	Locale 2
Including	309.30	310.40	1.10	39.54	Locale 2
12GRL065	166.00	167.00	1.00	1.34	Locale 2
	275.00	276.00	1.00	1.11	Locale 2
	314.00	315.00	1.00	1.77	Locale 2
	318.00	319.00	1.00	1.10	Locale 2
	323.00	325.70	2.70	2.45	Locale 2
	392.00	393.00	1.00	3.26	Locale 2
	395.00	396.50	1.50	2.64	Locale 2
	398.00	399.00	1.00	3.29	Locale 2
	406.00	407.00	1.00	1.65	Locale 2
	412.00	419.40	7.40	4.18	Locale 2
12GRL070	165.00	166.00	1.00	1.17	Locale 2
	170.00	171.00	1.00	3.79	Locale 2
	187.00	189.00	2.00	1.50	Locale 2
	322.00	323.00	1.00	1.22	Locale 2
	336.30	341.00	4.70	1.66	Locale 2
	343.00

As a side note, I was browsing through blog and articles when I saw that M Giordanos mentioned Sabina is one of his top picks write ups. He says....

"On the mining side, he said Sabina Gold & Silver Corp. (TSX: T.SBB, Stock Forum) is one to watch. “They are in the Nunavut area with the Black River Gold Project that they are “advancing nicely.” They also have a silver royalty from the Hackett River silver-zinc mine which is being developed by Xstrata Zinc Canada. In Giordano’s opinion, Sabina benefits from strong management, excellent assets, and a strong balance sheet, with about $140 million in cash.
Read more at http://www.stockhouse.com/natural-resources-news/2012/aug/2/stockhouse-movers---shakers--giordano-reveals-his-.aspx#TuMpF9ort62FOmrW.99 "

A closer look at the poker flats

I wrote a entry a little while back about the potential TIMCO financing for Spartan Gold (SPAG), which has an option of earning 75% (from Mexivada Gold, MNV) on the poker flats property. To me the poker flats is interesting because it borders on Gold Standard Ventures property, where they have been releasing very respectable drill results.

SPAG doesn't trade on any of the Canadian exchanges and is only on the OTC boards, which I nearly never venture over to. But, a company called Sphere Resources (SPH.H), who owns roughly 53% of SPAG is traded on the NEX board of the TSX venture. For those who are not aware, the NEX board is a place for companies who are either conducting very low levels of business or none at all.

As I said, the poker flats is of interest to me. I see it as a high risk/high reward property and have thrown a small amount of money at it. Investing in the poker flats is not as simple as it could be. Spartan Gold can earn 75% of the poker flats from MNV if it conducts drilling on the property, SPH owns half of Spartan Gold, and MNV owns the poker flat but has optioned it out to SPAG.

I ended up investing is SPH for a number of reasons. First, I don't like going to OTC board, and looking at the historical quotes for SPAG and cross referencing them with their press releases I suspected the usual games that go on in the OTC markets. I looked at MNV, but felt they have been poorly managed. They already did a share consolidation and are proposing another one. I don't want to buy a 3 cent stock, have it go up to 9 cents on a 3:1 rollback, then have it drop back down to 6 or 5 cents. One could wait for the rollback to finish, but then, your investing I'd be investing in a company that owns 25% of the poker flats.

Sphere currently owns 53% of Spartan. If the financing goes through, and the warrants were to become exercised, Sphere would own roughly 30% of SPAG. As well, with Sphere being listed on the NEX board, they have major restrictions with regards to share issuance and many other share related processes. Being in at 3 cents, the stock doesn't seem to move a lot, to me its a way to invest some money in the poker flats through a Canadian exchange and not having to go over to the OTC. I'm betting on the hopes that any NR mentioning the finding of gold will send the price up around .10 - .15, which is where I would look at exiting. Do your own DD, I'm just sharing thoughts, not giving advice.

The terms of the financing from TIMCO will require SPAG to renegotiate the terms of their joint venture agreement. This is a clause I found to be interesting as I wonder what exactly they would want to change, and if this could be any potential hang up in the deal. I would guess that MNV will be eager to have the 3000m drill program commence on the poker flats, given the fairly poor results they received on their own 1500m program and their running out of money.

News from Prosperity Gold Fields/Nunavut Comment

Prosperity Gold Fields released a news release today. PPG is a junior working in southern Nunavut, just above the border of Manitoba, on their Kiyuk Lake project (They also have another property in the Yukon). From the pictures on their website, their camp is fairly small with only 2 facility looking buildings and a handful of cabins.

Prosperity has never been on my watch list, I just caught their news release as I was looking at stockhouse this morning. I didn't find the news to be all that exciting other than the fact that it mentioned their property was in Nunavut, a place I have a keen interest in as far as gold exploration goes. I read the press release then went on to look through their site a bit.

The independent technical report on the website gives an interesting but of history on Kiyuk Lake, as it relates to gold exploration....

     "The Kiyuk Lake area of southern Nunavut received little recorded exploration attention until Comaplex
Minerals Corp (Comaplex) conducted regional exploration in the early 1990s using publically available
lake sediment geochemistry, airborne magnetic geophysical survey data and reports of gossanous rocks
identified during government regional mapping. This exploration work by Comaplex confirmed the gold
mineralization at Kiyuk, however, despite recommendations to continue exploration on the property in the
1989 assessment report (Hauseux, 1993) Comaplex eventually let their mineral right lapse. The property
was left dormant until 2003 when it was restaked by M. Hauseux and S. Sumacz. Since then the claims
were intermittently worked and the property expanded by optioner Newmont Canada Limited, it was then
returned to the claim holders in early 2009 and subsequently optioned to Evolving Gold Corp.. The option
agreement was then transferred to Prosperity Goldfields Corp. late in 2010. The summer of 2011 saw
exploration by Prosperity Goldfields, and included 2679 m of diamond drilling and minor surface
prospecting / sampling. A more detailed review of work conducted on the property can be found in the
table following. No historical mineral resource or mineral reserve estimates have been made for the Kiyuk
Lake gold mineralization. Furthermore, no gold production has been undertaken from the area"

Of this 2679 m of drilling three noteworthy results were found:

Cobalt discovery, 31.4 m at 2.41 g/t Au
Rusty discovery, 42.4 m at 3.3 g/t Au
Gold Point discovery, 63.6 m at 2.8 g/t Au

The Rusty and the the Cobalt holes are both respectable drill results. Below is a picture which gives an idea of the amount of exploration work done at each area and the distance between them.

Nunavut and the Canadian arctic are interesting areas because they largely unexplored (from a resources point of view, among many others) and there is, given what geologists know about the geological history of the land, high potential for gold; as we are finding out. From a scientific perspective, there really is very little known about its geological qualities. The 3D models being put together by geologists working for exploration companies are some of the most advanced models put forth for this area.

That being said, exploration can be tough and costly up north. Infrastructure is next to non-existent and companies are having to come up with their own strategies for getting in supplies, and moving them around (most of it involving costly float plane and helicopter trips).

I know a number of companies are in the early stages of conducting an environmental impact study up by Bathurst inlet. The idea is to build a small port then a road. The Helicopter trip (which I had the luxury of taking twice) took 40 minutes with favorable wind. Long way for trucks to go. That being said, PPG, being closer to the Manitoba border, may not have such a difficult/costly go of it. Kind of the best of both worlds, remote enough to have a chance to find something big in a place most haven't bothered to look, but still close enough to infrastructure.

As well, the Inuit community has seemed quite co-operative in the stories which I have been following.

Anyways...I'll continue to keep my eye out for the interesting stories coming out of the Canadian Arctic and I'll be putting PPG on my watch list.

Sabina Drill Results

The Arctic drilling season is just a couple of weeks at most from being over and investors will see a few months of none or very minimal news coming from their juniors up north. Sabina released a press release today detailing what they believe to be a new shallow, high grade, discovery between the Umwelt and llama deposits near goose lake at their back river project. We can expect to have further drilling conducted on the area when drilling begins again sometime in late February. It will be interesting to see if this new discovery turns into anything of value.

For those who haven't been following Sabina, they are a gold and silver company with nearly 7 million oz Au in the ground and money in the bank. They say they plan to bring their back river project to a mine by 2016 but we'll see if they can raise the money or if they don't get bought out. If I recall correctly, they have around 160 million in the bank. Heres a link a write up I did on them a month or so ago. When I wrote about them then I think they were trading somewhere around 2.00. http://juniorcanadianresource.blogspot.ca/2012/07/sabina-gold-and-silver-sbb.html

Note that in the last paragraph posted here Sabina states that true widths are not yet known, and that they expect to have the pre-feasibility study out by 2013

Sabina Announces New Shallow High Grade Discovery at Back River Project, Nunavut

Hole 12GSE226 Returns 12.68 g/t Au Over 15.45 m from 52.00 m Down-Hole; Infill Drilling at George Confirms High-Grade Nature of Locale 1 Deposits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2012) - Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce new assay results from holes drilled at its Goose and George properties as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.

Near-Surface Discovery

At the Goose property, a shallow new zone of gold mineralization has been discovered between the proposed Umwelt and Llama open pits. The Wing Zone was discovered by drill holes targeting the extension of the Llama deposit at depth. This new zone lies predominantly on the west limb of a south-plunging anticlinally folded iron formation sitting above and to the west of the deep extension of the Llama deposit.

Hole 12GSE226 intersected 12.68 g /t Au over 15.45 m in the western part of the zone starting at a down-hole depth of 52.00 m. The hole then went on to intersect the eastern limb of the fold returning several significant intercepts including 5.86 g/t Au over 1.05 m, 3.91 g/t Au over 3.00 m, 4.19 g/t Au over 2.95 m and 17.63 g/t Au over 0.60 m between 213.10 and 245.80 m.

The hole finally intersected its target at depth, returning 7.14 g/t Au over 4.05 m in the deep extension of the Llama Main West zone, Below the zone, a sample from a sediment-hosted dyke yielded 7.08 g/t Au over 0.80 m.

A step out hole 100 metres to the southeast of 12GSE226 encountered the Wing Zone again. Hole 12GSE231 returned various lower-grade intersections in both the eastern and western parts of the zone including 2.43 g/t Au over 19.15 m. At target depth in the Llama Main West deep extension zone, 12GSE231 returned intercepts of 14.31 g/t Au over 2.00 m, and 16.34 g/t Au over 1.55 m. Ongoing drilling is continuing to trace the Wing Zone mineralization as it plunges to the south.

"We are pleased to have another high-grade near surface discovery to follow-up on," said Rob Pease, President & CEO. "The Wing Zone's strategic location, near the proposed mining infrastructure and right in between the proposed Llama and Umwelt open pits, makes it of significant interest to us. Results like these continue to demonstrate the prospectivity of our vast land holdings at Back River."

Llama Drilling Highlights

Hole Id	From (m)	To (m)	Length (m)	Au (g/t)		Zone Name
12GSE226	43.90	45.20	1.30	2.28		Wing Zone West
	52.00	67.45	15.45	12.68		Wing Zone West
including	57.20	59.00	1.80	0.00		Wing Zone West (core loss interval)
and	59.00	64.70	5.70	28.30		Wing Zone West
	213.10	214.15	1.05	5.86		Wing Zone East
	227.10	230.10	3.00	3.91		Wing Zone East
	245.20	248.15	2.95	4.19		Wing Zone East
including	245.20	245.80	0.60	17.63		Wing Zone East
	260.15	260.65	0.50	3.00		Wing Zone East
	518.70	522.75	4.05	7.14		Main West
including	518.70	520.10	1.40	12.77		Main West
	539.65	540.45	0.80	7.08		Gwky Core

True widths have not yet been determined

George Infill Drilling

The George property sits approximately 60kms north of the Goose claim block and contains underground resources of 2,727,000 tonnes grading 8.14 g/t Au for a total of 714,000 indicated ounces of gold and an additional 1,857,000 tonnes grading 8.92 g/t Au for a total of 533,000 inferred ounces of gold. The resources at George are made up of a series of deposits on the property and are the Preliminary Economic Assessment contemplates these deposits to be mined at Back River.

Currently three drills are focussed on infill drilling at George to upgrade the resources from Inferred to Indicated. The program is currently focused on the Locale deposits which contain the bulk of the George resources. Five of the first six holes at Locale 1 have confirmed the robust nature of the gold mineralization. Highlights include hole 12GRL058 (16.16 g/t Au over 7.85 m), 12GRL063 (6.12 g/t Au over 18.40 m) and 12GRL064 (16.85 g/t Au over 4.82 m).

Locale 1 Drilling Highlights

Hole Id	From (m)	To (m)	Length (m)	Au (g/t)		Zone Name
12GRL058	215.4	223.25	7.85	16.16		Locale 1
including	217.45	218.55	1.1	74.69		Locale 1
and	220.5	221.15	0.65	25.29		Locale 1
12GRL060	245.95	255.6	9.65	6.37		Locale 1
12GRL061	103.3	104	0.7	24.4		Locale 1
	233	243	10	6.31		Locale 1
including	238	241	3	17.41		Locale 1
	246	247.7	1.7	2.02		Locale 1
	252	261.1	9.1	16.83		Locale 1
including	253	258	5	28.91		Locale 1
including	255	258	3	37.83		Locale 1
12GRL063	217	235.4	18.4	6.12		Locale 1
12GRL064	257	260	3	1.43		Locale 1
	271	272	1	2.37		Locale 1
	277	278	1	4.44		Locale 1
	281	288	7	3.9		Locale 1
	294.18	299	4.82	16.85		Locale 1

True widths have not yet been determined

The 2012 exploration program is expected to continue until the beginning of October with a combination of extension, resource conversion and geotechnical drilling on the Goose and George properties. The resource conversion and geotechnical drilling are intended to provide the technical information necessary to complete the ongoing Pre-Feasibility Study anticipated in 2013.