New Dawn's Turk Mine in Zimbabwe Resumes Full-Scale Mine Operating Program
Mon May 4, 6:30 AM
ca.news.finance.yahoo.com
Highlights:
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- Resumption of full-scale mining operations at Turk Mine in Zimbabwe
- Initial production rate of 250 tonnes per day at Turk Mine
- Initial output targeted at 700 to 750 ounces of gold per month
- Immediately available production capacity at Turk Mine of 400 tonnes
per day
- Output targeted to rise to 1,150 to 1,200 ounces of gold per month by
October 2009
- Average cash cost anticipated at approximately US$425 to US$450 per
ounce in October 2009
- 11 years of proven and probable mine reserves at October 2009
production rates
- Further additional incremental production increases planned as
expansion projects completed.
- US$1.3 million received and 100% retained from gold sales during the
restart of the mine development program
TORONTO, May 4 /CNW/ - Ian R. Saunders, President and CEO of New Dawn Mining Corp. (TSX: ND.TO) announced that New Dawn's 100% wholly-owned Turk Mine in Zimbabwe has resumed full-scale mining operations.
The current initial production rate of 250 tonnes per day should result in approximately 700 to 750 ounces of gold being produced monthly at an average cash cost of approximately US$500 to US$550 per ounce.
Over the next several months, New Dawn intends to hire an additional 200 experienced miners and raise mine output to 400 tonnes per day to achieve a production target of 1,150 to 1,200 ounces of gold per month at a average cash cost of US$425 to US$450 per ounce. New Dawn anticipates achieving this target by October 2009. As production continues to increase beyond October 2009, cash costs are expected to further decline.
Total existing capacity at Turk Mine is currently rated at 400 tonnes per day, but current expansion projects, which are nearing completion, will increase existing capacity to 650 tonnes per day. New Dawn plans for further production increases every 6 to 9 months to maximize existing capacity and fully utilize the projects currently underway to expand daily mining and processing capacity.
Additionally, during the restarted mine development program, which was reported on 26th February 2009, until the commencement of full-scale mining operations in early May 2009, New Dawn's gold sales totaled approximately US$1,300,000. New Dawn retains 100% of it gold sales as a result of changes under the new Monetary Policy Statement implemented in Zimbabwe in late January 2009.
"This resumption of full-scale mining operations and the initiation of our projects and programs to ramp up output at our operations in Zimbabwe signify a turning point in the history of New Dawn. I would like to thank all our shareholders, employees and other stakeholders in our Company, who kept faith in us, while we addressed and overcame the extreme difficulties in Zimbabwe that affected us since the latter part of 2008," said New Dawn President and CEO Ian R. Saunders. "In the coming weeks and months ahead, we look forward with great enthusiasm to reporting further developments at the Turk Mine to our shareholders."
New Dawn is also currently reviewing additional value accretive opportunities in the region and expects to report to shareholders in this regard as appropriate.
About New Dawn ...
New Dawn Mining Corp. is a junior gold company concentrating its efforts in southern Africa. New Dawn is well established there with three mines, two production facilities, a skilled and experienced workforce and significant resources.
Two recent NI 43-101 reports documented an aggregate of 969,546 ounces of gold reserves and resources grading between 2.9-6.1 g/t, with additional inferred mineral resources of 355,873 ounces of gold grading between 3.90 - 5.91 g/t. Reserves and Resources are based upon a 2.45 g/t cut-off and US$875/oz gold price at the Turk and Angelus Mines and a 2.0 g/t cut-off at US$750/oz gold price at New Dawn's Blue Dot Property. For further information on New Dawn's gold reserves and resources, visit the Company's website at www.newdawnmining.com or filed on SEDAR at www.sedar.com .
New Dawn wholly owns the Turk and Angelus Mines in the upper southwest area of Zimbabwe, with a production facility currently capable of processing up to 400 tonnes per day or 12,000 tonnes per month; and owns a 74% interest in the Blue Dot Property in South Africa, with a production facility there rated at 180 tonnes per day or 5,500 tonnes per month. The Company maintains a highly experienced work force of over 800 people.
The Company has additional assets that form a portfolio of exploration properties, and include the Consolidated Bubi Gold Fields, consolidated Midlands Gold Fields and consolidated Shurugwi Gold Fields properties, all of which are located 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.
Investors are invited to visit the New Dawn Mining Corp. IR Hub at AGORACOM: agoracom.com where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to: ND@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
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 May 29, 2008 Prospectus. 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 Management Discussion and Analysis 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.
Contacts
Investor Relations Contact: Richard Buzbuzian
(416) 585-7890
President and Chief Executive Officer: Ian R. Saunders
(416) 585-7890
Visit us on the internet: newdawnmining.com or Email us at: info@newdawnmining.com |
