Mahdia Gold Corp MHGPF

RE:RE:R/S...Out of the question!!

[Caribbeanman]

From my side of things, it's my opinion that Douchane isn't to blame for anything and has probably done a very good job at muzzling rumors and stopping the news release pumps that the previous administration was so adept at.

I've reread the July 26th news release from management twice. It's very carefully crafted with no real promises, only a list of cautious intentions. Which was the correct thing to do. 

Douchane is trying to row upstream dragging a couple of 5 gallon buckets behind him and it's tough rowing. The buckets being the $8,000,000 debt, and the $300,000 a month overhead nut.

I sold off 90% of my position at the .09 cent mark. At the same time I sold 100% of my position in GPM. There are some similarities with those two properties.

GPM trading at .06 cents today.
GPM was trading at .26 cents at some point last year. Versus Mahdia similar.
GPM in Guyana also
GPM sitting on 2 of the largest 4 historical gold mining sites in Guyana. Mahdia being #1
GPM with some proven resources from previous drilling. [Mahdia has none as of yet, but may be close]
GPM with $4,500,000 in bank and little or no overhead versus Mahdia. Although Madia is close to alluvial production whereas GPM is showing no signs of moving forward.

The point being is that I've lost a bit of faith in investing in South America. Things move too slowly and there is too much "government" to deal with along with political unrest from the masses over foreigner's abusing their country.

I believe previous management was fully intending to dilute this stock in order to pay the Guyana government debts and intended to do so with the underground drilling program. Unfortunately they spent the money in the wrong places and didn't anticipate any downturns.

For me the bulk of the infrastructure already in place is a non-factor in the valuation of the company until they resume underground mining. Underground mining is at least 2, maybe 4 years away at best. First they have to prove up enough resources underground to justify reopening the mine.

I'm monitoring things with the idea of getting back in, but not without some news that is substantial in nature. I'd rather buy back in at .15 cents when I know there's an upside, rather than gamble at .05 cents that things are bound to get better just because it seems that it must.