Read betwwen the lines"Form7"!! FORM 7
MONTHLY PROGRESS REPORT
Name of CNSX Issuer:
Mahdia Gold Corp.
(the “Issuer”).
Trading Symbol:
MGD
Number of Outstanding Listed Securities:
187,461,264 common shares
Date:
October 6th, 2014
This Monthly Progress Report must be posted before
the opening of trading on the fifth
trading day of each month. This report is not intended to replace the Issuer’s obligation
to separately report material information forthwith upon the information becoming known
to management or to post the forms require
d by the CNSX Policies. If material
information became known and was reported during the preceding month to which this
report relates, this report should refer to the material information, the news release date
and the posting date on the CNSX.ca website.
This report is intended to keep investors and the market informed of the Issuer’s
ongoing business and management activities that occurred during the preceding month.
Do not discuss goals or future plans unless they have crystallized to the point that the
y
are “material information” as defined in the CNSX Policies. The discussion in this report
must be factual, balanced and non
-
promotional.
General Instructions
(a) Prepare this Monthly Progress Report using the format set out below. The
sequence
of
questions must not be altered nor should questions be omitted or
left unanswered.
The answers to the items must be in narrative form. State
when the answer to any item
is negative or not applicable to the Issuer. The title
to each item must precede the
ans
wer.
(b) The term “Issuer” includes the Issuer and any of its subsidiaries.
(c) Terms used and not defined in this form are defined or interpreted in Policy 1
–
Interpretation and General Provisions.
Report on Business
1. Provide a general overview and
discussion of the development of the Issuer’s
business and operations over the previous month. Where the Issuer was inactive
disclose this fact.
FORM 7
–
MONTHLY PROGRESS REPORT
October 2014
Page 2
September, the Company’s
Joint Venture with K.B. Minin
g
completed installa
tion
of a second wash plant of
200
t
on per hour capacity to add
to the current
plant of
75
ton per hour
capacity
.
The
joint venture
saw
commencement
of operations with a first plant
75 ton
-
per
-
hour
plant
in August
and a
second
200 ton
-
per
-
hour
plant
on site but not yet
commissioned.
T
hese first
two plants
spent august and September
in rigorous
test
ing and
also commenced
production
of gold
.
One hundred ounces of gold
was produced
during
the
period. The field test
ing
allowed the
joint venture to fine
tune operatio
ns towards
better
process
ing of material
.
As an example,
the
plants
were suffering some
damage
from oversized mineralized rocks. A grate/grizzly
system
was
built
and
installed to remove the oversized material
for crushing
and
subsequent gravity processing.
The JV has brought in the first crusher to the site
to
handle the
rocks
.
These improvements
resulted in
production of
13
ounces
of
production during
less than
24 hours
in a recent test batch run.
The JV partnership has
now introduced an 8 inch suction dredge
with additional
ones planned.
Additionally Mahdia Gold will be operating one of its own dredges
this week where it shall earn one hundred percent of production. A second
Mahdia Gold dredge
is planned to
be operational shortly
to increase production
of gold.
Tailings from all dredges will be processed through the plants
to optimize
extraction of gold.
As earlier reported, the company is
currently
evaluating
improved
recovery
through instal
lation of
a
fine gold and diamond recovery system. This
is expected
increase gold recovery by 100
% with
incremental
increases expected
through
the
recovery
of diamonds
known to be present
. Diamonds
have
hitherto
been
recovered
on the property
in artisanal
operation but the value of the diamonds
has not been quantified.
Overall, the
differential value of the materials recovered
by the 100% Mahdia
purchased equipment will substantially improve cash flow
with a minimum of additional operating cost.
The company
is now negotiating
funding for this improved recovery system.
2.
Provide a general overview and discussion of the activities of management.
Management has engaged in the necessary filings and negot
i
ations pertaining to
maintaining its property in good standing. The