The Guyana Geology and Mines Commission (GGMC) has approved the application of Mahdia Gold Corp (MGC) for a Prospecting Licence for gold and precious metals in the Omai mine which the Canadian company acquired last year.
The company announced last week that as a result, it will now be able to open the Omai mine site and begin working on the property. “The Mahdia Gold executive team plans to visit the Omai mine site within the next two weeks and to soon thereafter begin activity on the property with men and machinery,” the company said in a statement.
“Mahdia Gold is looking forward to a long term successful program at the Omai and is hopeful that this exercise will result in increased yield and value for all our shareholders,” the statement said. “Mahdia Gold is currently reviewing a draft of the AMEC geological report. A final version will be published immediately upon completion. This report focuses on the Omai mine and will review past performance, current conditions and future potential of the mine. The AMEC geological report will serve as a guide to Mahdia Gold as we commence our operations on the Omai mine,” the company said.
Last year, the Canadian company acquired the gold mine for US$11.5M to be paid over two years to the government. In a statement at the time, the company said that it is its intent “to exploit this asset in an accelerated fashion thereby maximizing shareholder value. To this end, (MGC) will be partnering with a world class mining engineering company.”
MGC is publicly listed on the Canadian National Stock Exchange under the symbol MGD. Its principals include its President, Robert Salna – a businessman involved in oil and gas in the Middle East and in gold mining in North America; Executive Vice President of Explorations, David Bending, who has been operating in Guyanese mining projects for a decade; and Chief Executive Officer and Chairman, Alan Zaakir, a Guyanese who now resides in Canada. The company’s website noted that Bending has valuable firsthand knowledge of the Guyanese mining laws and general business culture while Zaakir is well-placed and connected to the mining industry and political environment in Guyana.
The Omai goldmine was most recently held by IAMGOLD who acquired it from Cambior Resources. At the time it was built, in the early 90’s, Omai was the largest goldmine in South America. In a period spanning 13 years, Omai produced some 3.7 million ounces of gold during a period when the price of gold was approximately US $300 an ounce, the company noted.
In the last few years, gold prices have risen to record highs and there have been increased activities in the mining sector here. Last March, Canada-based Guyana Goldfields Inc announced that it will open an underground mine at its Aurora location along the Cuyuni River in Region Seven. It said that its investment will be $165B over the life of the project.
