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Attention Business/Financial Editors
New Dawn Reports US$3.55 Million in Gold Sales from its Turk Mine in Zimbabwe for the Quarter ended June 30, 2010
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Highlights:
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- 3,243 ounces of gold produced for the quarter ended June 30, 2010, as
compared to 3,395 ounces of gold produced for the quarter ended March
31, 2010
- Gold sales of US$3,549,786 for the quarter ended June 30, 2010, as
compared to gold sales of US$3,801,480 for the quarter ended March
31, 2010
- Average price per ounce of gold of $1,194 during the quarter ended
June 30, 2010, as compared to average price per ounce of gold of
$1,109 for the quarter ended March 31, 2010
- At June 2010 month-end, an additional 836 ounces or 26 kg's of gold
awaited export for sale in South Africa, and will be included in July
2010 sales
- 100% of gold sales were received in US Dollars
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TORONTO, July 16 /CNW/ - New Dawn Mining Corp. (TSX: ND) reported that
New Dawn's Turk Mine in Zimbabwe produced 3,243 ounces of gold or 100.9 kg's
for the quarter ended June 30, 2010, as compared to 3,395 ounces of gold or
105.6 kg's for the quarter ended March 31, 2010.
During the quarter ended June 30, 2010, gold production output levels
were affected by unscheduled power cuts. As previously announced, the power
situation at Turk Mine is being stabilized with the installation of diesel
generators. The engineering design for the generators has been completed,
tenders have been received and adjudicated, and equipment for a full turnkey
3MVA has been ordered. The generators that are being installed are expected to
provide electrical capacity sufficient for New Dawn to be able to reach and
maintain its next production target at Turk Mine of 22,000 to 23,000 ounces of
annualized gold production. Installation of the generators is expected to be
completed during the third calendar quarter of 2010.
During the quarter ended June 30, 2010, gold sales totalled $3,549,786 at
an average sale price per ounce of gold of US$1,194, as compared to gold sales
for the quarter ended March 31, 2010 of $3,801,480 at an average sales price
per ounce of gold of US$1,109.
100% of sale proceeds were received in US dollars.
At June 2010 month-end, an additional 836 ounces or 26 kg's of gold
awaited export documentation for sale in South Africa, and will be included in
July 2010 sales.
As previously announced, New Dawn is now reporting production output and
sales figures on a quarterly basis, rather than on a monthly basis, as
production output has reached normalized levels.
The aforementioned production and sales figures for the quarter ended
June 30, 2010 do not include the Zimbabwe gold properties of Central African
Gold Plc ("CAG"), which were conducting limited operations or were on care and
maintenance through June 30, 2010. New Dawn acquired an approximate 89% equity
interest in CAG in mid-June 2010.
About New Dawn ...
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, as well as actively
assessing other value accretive acquisition opportunities 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.
For further information on New Dawn's gold reserves and resources, visit
the Company's website at www.newdawnmining.com or the Company's filings on
SEDAR at www.sedar.com.
The TSX has not reviewed and does not accept responsibility for the
adequacy or the accuracy of this release.
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.
-30-
/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 Email
us at: info@newdawnmining.com/
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