Saturday, October 5, 2013

Another Mahdia Gold Post

I've posted about Mahdia Gold in the past, but I would like to do a re-write with added insight.

So, Mahdia Gold has the old Omai mine in Guyana (which was held by Cambior, then IAMGold once they bought out Cambior) which produced 3.7 million ounces at 1.4 g/t over a period of 13 years from two open pit mines, The Fennel Pit and The Wenot Pit. They had some environmental issues which caused them to leave the project.

Sometime after that the property fell into the hands of Mahdia Gold, led by Alan Zaakir. The story requires a bit of back ground on Zaakir and his previous ventures in resource exploration. Taking the most important news bit over the years this is a brief outline of what went down, with his first company relevant to the story, Aztek Resources.

  • Fed 25, 2005 - Aztek closes a pp of 1 720 000 shares  at .35 for gross proceeds of $602,000
  • Sept 6, 2005 - Aztek signs option agreement for for 80% of the mineral rights to the Mowasi property, Guyana, located near the Tiger River property.
  • Nov 14, 2005 - Aztek is halted due to the late filing of audited financial statements. A mapping program is being conducted on the Tiger River property and will be followed up by a sampling program as per the suggestion of Newmong Mining, who made a trip to the site a few months prior.
  • Apr 20, 2006 -Alpha One Corporation to aquire Aztek Resources. As qualifying transaction.
  • Dec 11, 2007- Aztek terminated agreement with Alpha One Corp. Aztek is "trying hard" to get listed on an internationally recognized stock exchange.
  • Mar 26, 2008- Aztek and Wintercrest resources enter into an agreement to undertake an amalgamation of the two companies. Aztek still does not trade on an exchange.
  • Mar 28, 2008- The two companies suspend the agreement.
  • Mar 07, 2008- Securities commission issue a CTO for failing to issue shares from a past bridge financing. (now that's bad...)

Aztek Resources left their shareholders out to dry. Of all the money they raised, granted not a fortune, not a single meaningful piece of exploration work was conducted. By, of course, management was able to live a decent life style through it all.

So, at some point during this Zaakir formed another company called Wintercrest Resources whose' press releases were often signed under a second (still legal) name. On Dec 2 2009  they did a share consolidation and changed the name to Mahdia Gold. Mahdia Gold then acquired the Tiger River property from Aztek, an issue which has a lawsuit attached to its story line.

"The suit, which was filed at the Kelowna courthouse on Feb. 28, 2012, complains that Mahdia acquired Aztek's 49-per-cent interest in a Guyana property called Tiger River for no consideration. Aztek was supposed to receive 4.5 million shares, but that never occurred. The suit further claims that former Aztek directors allowed the company to be cease traded as part of an effort to conceal dealings with Mahdia."

Alan Zaakir responded to such allegations in an email that got leaked out to various sites. In the response, he talks about the man "getting what he deserves" and other threats. I'm trying to find the email...anyways.

Now we have Mahdia gold. Lets take a brief look at the financing/news history for this Company.

  • May 14, 2010- Mahdia announces pp of 162,000 dollars at .15. Mahdia said it would use that money to      "run a comprehensive drill program". The release includes information from a survey done by the Guyanese government on the Tiger River property in 1947. Values listed below. Note that it says oz not g.
0.65 oz of gold over 1.3 ft
1.02 oz of gold over 2.0 ft
1.64 oz of gold over 1.7 ft
17.70 oz of gold over 1.0 ft
9.30 oz of gold over 1.2 ft
                            9.25 oz of gold over 1.4 ft                     
  • May 19, 2010 - Mahdia to explore Tiger River property. (No exploration work done to date).
  • July 22, 2010 - Mahdia Gold announced a PP of $2,000,000 at 0.20 for the purpose property acquiring and capital operating purposes, the release outlines the intention to acquire the White Creek Gold property previously owned by StrataGold, the release mentiones plans for a exploration program                                                          
  • Oct 20, 2010 - Mahdia announces a $500,000 PP at .10 (warrents at .15)
  • Jan 5, 2011 - Mahdia signs option agreement for the White Creek Gold property. Press release ends by saying that Mahdia plans to explore the White Creek Property before the end of 2011 to "identify its value". No exploration work on the white creek property has been done.
  • Mar 21, 2011- Mahdia announces pp of 1,200,000 at .25 cents (warrents at .45). PP closes on May 3. News release explains that it was oversubscribed and that the gross proceeds of the PP are $3,500,000.
  • May 9, 2011- Mahdia acquires the White Creek gold property for $700,000. The property had some preliminary exploration done on it through a joint venture program by StratGold and Newmont. Press release concludes that Mahdia is studying said data and will make it available to the public shortly.
  • May 30, 2011- Mahdia acquires Omai gold mine. As well, they acquire historical drill results which seem to outline 1.4 million oz. The press release concludes with a comment on a 5 million dollar PP at .60 with a 1/2 warrant at 1.05. SP shot up to a dollar shortly after the release. This news release also details that the agreement with the Guyanese government does not include any stock transaction. Instead, the company is required the pay $11,500 to the government over 2 years.
  • Aug 18, 2011- Mahdia hires AMEC to assist in completion of a N43-101 report. They also report some litigation issues at their Tiger River property (all 9 blocks), which the company says it considers a "minor nuisance"; a base camp will be built on the tiger river property.(another pp proposal is announces days after which states a 3-8 million will be raised at .40/share and .60/warrent.)
  • Nov 18,2011- Mahdia releases non 43-101 compliant historical drill results. First set of drill results seen up until now. Table can be viewed at,_2011.pdf
  • Dec 12, 2011- Mahdia Gold extends the closing on the previously announced PP to January 2, 2012. Release states that they are trying to create relationship with prospective participants who can be benneficial to the companies long term growth. They also announce the mobilization of TRADO drills and equipment to the White Creek property, data from the previous operators has been received and will be used to define new targets.
  • Jan 3, 2011- PP set to close for Jan 2 is extended to close on Jan 31. Zaakir is granted 2 mill stock options at an exercise price of .10. SP at this time was 0.18. Release ends by stating that drills are being mobilized to White Creek and the Omai property.
  • Feb 16, 2012- John Reynolds joins the board as co-chairman. As well the PP closing date is extended until March 19th, the price of .40/share is dropped to .30/share, warrant price of .60/share stays the same. The Omai project is "officially opened".
  • Mar 30, 2012- At the request of the CNSX, Mahdia releases more fulsome disclosure on the details of the White Creek acquisition. The release states some late filings, money was borrowed for the White Creek payment, and that the transaction is at an arms length.
  • Mar 30, 2012- PP closes, fully subscribed, at 8 million
  • Apr, 26 2012- Press release states that 2 diamond drills are drilling at the Omai site. One focused on hydrology and the other focused on drilling into the ore body in the Fennel Pit.
  • Jun 26,2012- Mahdia announces two more drills are being mobilized for confirmatory and twin drilling along the Wenot Trend. The campaign is said the be 6500m over 12-15 holes. In a second release, historical drill results are released, which can be viewed here.
  • June 29, 2012- Mahdia releases more historical drill results, including some monster grades. Of importance, the barren diabase dike is mentioned. The press release states that historical drilling, from 1997, concludes that the dike goes on for a depth of 180m, and that mineralization is intrusive below. (In my conversations with people who were either close to the project in the Cambior days, or actually worked there, their main concern was the Diabase dike. more on this later.)

  • Jul 24, 2012 - Mahdia releases NI43-101 geological report, report mentions a number of issues, including the firing of the drill crew due to poor performance. Thereport is later deemed to be non NI43-101 compliant and is now known simply as the AMEC report. The report can be found on Sedar,
  • Sep 14, 2012- Mahdia applies for listing on the TSX-V exchange.
  • Sep 19, 2012- Mahdia appoints Michael Galloro as chief financial officer.
  • Oct 22, 2012- Mahdia announces expansion of its land package in the Omai/Essequibo district. The agreement with South American Mining inc., the vender, will receive an initial $50,000. In total, the agreement for 100% mineral rights over the 21,000 acres will require the payment of 1,000,000 USD and 2,000,000 Shares of Mahdia. This release contains some interesting points, mainly that Omai explansion was closed off the the previous operators.
  • Nov 1, 2012- Mahdia arranges a 3,500,000 pp at .25 cents.
  • Nov 22, 2012- Mahdia announces the appointment of Gordon Glenn as CEO.
  • Dec 13, 2012- Mahdia hires Andre Duchane as mining consultant.
  • Jan 3, 2012- Mahdia announces mended terms of the the PP propsed on Nov 1. Each share will now have a .40 warrant exercisable for a period of 24 months after closing.
  • Jan 7 2013 - Mahdia announces Gordan Glenn leaves his position as CEO and appoints Donald Gordan as the intern CEO. This comes less than three months after Glenn was appointed as CEO.
  • Jan 24, 2013- Mahdia releases 587 acres (the "Shallow Flats Area") to Roraima Investing and Consulting services. It is assumed that they will work the area alluvialy as Mahdia trys to get some cash flow coming in. No resource estimate has been done on this area.
  • Feb 8, 2013 - Mahdia releases a corporate update. Can be read here
  • Feb 12, 2013 - Mahdia confirms gold grade of 4.41 g/t over 16.9 m. These are the first results from phase 1 drilling at the Wenot pit. Total grades can be seen here.  The results, being mediocre at best, is not the real story here. Its that they were able to discover additional mineralization zones below previously tested targets.
  • Feb 15, 2013 - Mahdia confirms gold grades from previously drilled core from the Fennel pit (2006) with confirmatory and supplemental assays. The grades were impressive, including 1.83 g/t au over 78 m; release states that all results are NI43-101 compliant. Full release:
  • Feb 25, 2013 - Mahida appoints Andre Duchane as COO.

So, after all this time, and all the million the amount of work includes a feeble drill program and a non 43-101 compliant technical report. Meanwhile, Zaakir was bringing in Salaries which ranged from $750,000 to 1,000,000 / year. Robbery!

Eventually, I suppose, there was some internal struggle and Zaakir got booted. Andre Duchane become CEO and investors thought that the future looked bright. But, by this time, all those who had given them money in the past had been burned to many times to even accept a call from these guys.

Further, the current investment number is 15 million dollars to get the project moving. For how poor management has been they could actually start a mining company for very little, given the infrastructure in place at the mine. But still, they have burned through so much money, with so little to show for it, that any further financing would dilute the hell out of this stock to ridiculous levels.

Case in point, another name to avoid at all costs..... Alan Zaakir (and perhaps David Bending, as he has been his "qualified person" through-out all these years of scummery and scam)


  1. And Ned Goodman wants to what with the CNSX?.. Keep these types of deals listed?

  2. Just a note on posting comment. I changed my format on IWNATTOS reco that make it open to google members only and kill off the alpha numeric code. Keeps the Anon off comments and is easier to post.