Monday, October 22, 2012

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.

Wednesday, October 3, 2012

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.



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 IdFrom (m)To (m)Length (m)Au (g/t)Zone Name
12GSE234529.60530.250.651.30Main East
533.85535.001.151.13Main East
540.30580.1539.8510.31Main East
Including541.80542.951.1532.17Main East
Including577.05578.000.9572.46Main East
12GSE238654.60656.602.008.19Main East
686.50687.350.8547.77Main East
695.25720.9525.7018.18Main East
Including701.10702.201.1042.51Main East
Including715.50717.351.85140.82Main 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 IdFrom (m)To (m)Length (m)Au (g/t)Zone Name
12GRL062139.00140.001.001.22Locale 2
171.00173.002.001.61Locale 2
183.00184.001.002.54Locale 2
238.60240.001.402.50Locale 2
297.00319.0022.004.11Locale 2
Including309.30310.401.1039.54Locale 2
12GRL065166.00167.001.001.34Locale 2
275.00276.001.001.11Locale 2
314.00315.001.001.77Locale 2
318.00319.001.001.10Locale 2
323.00325.702.702.45Locale 2
392.00393.001.003.26Locale 2
395.00396.501.502.64Locale 2
398.00399.001.003.29Locale 2
406.00407.001.001.65Locale 2
412.00419.407.404.18Locale 2
12GRL070165.00166.001.001.17Locale 2
170.00171.001.003.79Locale 2
187.00189.002.001.50Locale 2
322.00323.001.001.22Locale 2
336.30341.004.701.66Locale 2

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.SBBStock 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 "

Tuesday, October 2, 2012

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.