Central African Gold's Old Nic and Dalny Mines in Zimbabwe Transition from
Care and Maintenance to Resumption of Gold Production
TORONTO, Sept. 9 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company") announced that after less than one month of entering into a loan facility to supply Central African Gold Plc ("CAG") with up to US$2.0 million to support CAG's gold mining operations in Zimbabwe, the Old Nic and Dalny mines have transitioned from care and maintenance to resumption of gold production.
New Dawn, which acquired an investment consisting of an approximately 89% controlling interest in CAG in June 2010, is in the process of finalizing a detailed strategic review of the portfolio of gold mining assets owned by CAG in an effort to achieve its target of consolidated annualized gold production of 50,000 to 60,000 ounces of gold within 18 to 24 months and 100,000 ounces of gold within 4 to 5 years. New Dawn's corporate objective is to become a mid-tier gold producer with 200,000 to 250,000 ounces of annualized gold production based on existing assets currently owned and operated in Zimbabwe.
CAG controls two Zimbabwe domiciled companies, Falcon Gold Zimbabwe Limited ("Falgold") (84.7% owned by CAG) and Olympus Gold Mines Limited ("Olympus") (100% owned by CAG).
The Old Nic Mine:
The Old Nic mine, which is part of Olympus, currently employs 197 people, and since production resumed in early August 2010, it has produced 110 ounces of gold (98 attributable ounces). New Dawn, through its 89% controlling ownership interest in CAG, owns an 89% controlling interest in the Old Nic mine.
The Dalny Mine Complex:
The Dalny mine, which is part of Falgold, employs 232 people, and since production resumed in early August 2010, it has produced 124 ounces of gold (93 attributable ounces). New Dawn, through its 89% controlling ownership interest in CAG, owns a 75% controlling interest in the Dalny Mine Complex.
The Dalny mine complex has a strike length of over 15km. Historical production at Dalny mine up to 2006 was 2.44M ounces of gold from 10.2M tonnes of mineralized material grading approximately 7.42 g/t.
New Dawn believes that there is an opportunity over the next several years to develop a number of open-pit, medium-grade bulk mining operations within the greater Dalny shear zone. The Dalny mine property is under-explored and offers a substantial medium to long-term development opportunity.
About New Dawn Mining...
New Dawn is a Zimbabwe-focused junior gold company currently expanding gold production at its Turk and Angelus Mines, exploring for gold, and identifying and pursuing other development projects in Zimbabwe.
New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that has the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. New Dawn owns the property outright on which these mines are located.
New Dawn is currently developing a revised and updated strategic business plan in light of its acquisition of a controlling interest in CAG, with a view towards reaching consolidated annualized gold production of 50,000 to 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces within four to five years, and then ultimately to 200,000 to 250,000 ounces.
Additionally, the Company is reviewing and assessing CAG's extensive portfolio of exploration properties in Zimbabwe for future investment and development.
New Dawn's plans with respect to CAG's assets and operations will be developed and implemented taking into account New Dawn's ongoing discussions with and submissions to the Zimbabwe authorities.
Further information on New Dawn can be obtained at the Company's website at www.newdawnmining.com or in the Company's filings on SEDAR at www.sedar.com.
About Central African Gold...
Central African Gold Plc is a gold mining company with a portfolio of production, development and exploration assets in Zimbabwe which operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7% owned) and Olympus Gold Mines Limited (100% owned). Through these subsidiaries, CAG has five main gold properties, the Dalny, Venice, Golden Quarry, Camperdown and Old Nic mines, which are located in the highly prospective Kadoma, Shurugwi and Bulawayo mining districts in Zimbabwe.
The TSX has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The contents of this news release were supervised and reviewed by Ian R. Saunders, B.Sc., who is President, Chief Executive Officer, and a Director of New Dawn Mining Corp., and who is a Qualified Person within the meaning of NI 43-101.
Special Note Regarding Forward-Looking Statements: Certain statements included or incorporated by reference in this news release, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words "believe," "expect," "anticipate," "contemplate," "target," "plan," "intends," "continue," "budget," "estimate," "may," "schedule" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, risks relating to reserve and resource estimates, gold prices, exploration, development and operating risks, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs and dependence on key employees. See "Risk Factors" in the Company's Annual Information Form - 2009. Due to risks and uncertainties, including the risks and uncertainties identified above, actual events may differ materially from current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or results or otherwise.
%SEDAR: 00026497E
For further information: Investor Relations Contact: Richard Buzbuzian, +1 416.585.7890; President and Chief Executive Officer: Ian R. Saunders, +1 416.585.7890; Visit us on the internet: http://www.newdawnmining.com, or E-mail us at: [email protected]
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