New Dawn Announces Significant Increase in Mineral Reserves and Resources at its Gold Mining Properties in Zimbabwe

Highlights:

  • 123% increase in Proven and Probable Mineral Reserves to 494,400 ounces of gold grading 1.52 g/t from 10,145,700 tons of mineralized material
    • an increase of 272,600 ounces of gold
  • 44.1% increase in Measured and Indicated Mineral Resources to 2,290,500 ounces of gold grading 2.14 g/t from 33,357,400 tons of mineralized material
    • an increase of 700,500 ounces of gold

  • 9.1% increase in Inferred Mineral Resources to 607,500 ounces of gold grading 4.29 g/t from 4,401,000 tons of mineralized material
    • an increase of 50,500 ounces of gold

Note - The quantities estimated and the percentage increases reported are presented on a total basis without adjustment for any minority interests.

TORONTO, Dec. 17, 2012 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company") announced updated Mineral Reserve and Mineral Resource ("MRMR") estimates for each of its six gold mining properties in Zimbabwe.  Five of the properties, specifically, the Turk and Angelus, Dalny, Golden Quarry, Camperdown and Old Nic Mines, are currently in operation producing gold, while the sixth gold mining property, the Venice Mine, is currently on care and maintenance. The updated MRMR estimates were prepared by Michael Othitis, an independent qualified person, and will be set out in technical reports prepared in compliance with National Instrument 43-101 ("NI 43-101").

As a result of the updated Mineral Reserve and Mineral Resource estimates, which are reported on a total basis without adjustment for any minority interests, New Dawn now wholly-owns or controls a total of 2,290,500 ounces of gold grading 2.14 grams per ton ("g/t") from 33,357,400 tons of mineralized material in the Measured and Indicated Mineral Resource categories. Included within the Mineral Resources are Proven and Probable Mineral Reserves totaling 494,400 ounces of gold grading 1.52 g/t from 10,145,700 tons of mineralized material. In addition, there are 607,500 ounces of gold grading 4.29 g/t from 4,401,000 tons of mineralized material contained in the Inferred category.

The new Mineral Resource estimate represents a 44.1% increase in the Measured and Indicated categories (both of which include Mineral Reserves) and a 123% increase in the Proven and Probable Mineral Reserve category, as compared to the Company's previously announced MRMR estimates.

"Over the last 2 years, by systematically reviewing, upgrading and updating our geology and mining databases, and by conducting low cost but effective exploration programs, New Dawn has been able to add significantly to its gold resource base at a low cost relative to industry peers," commented Ian R. Saunders, New Dawn's President and CEO.  "As production levels trend upward, these additional gold ounces will prove to be a valuable asset as New Dawn continues its focus on increasing sustainable gold production over the long term."

UPDATED MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES FOR ALL NEW DAWN PROPERTIES (Mineral Resources are inclusive of Mineral Reserves)

NEW DAWN MINING CORP
CONSOLIDATED MRMR ESTIMATES - JUNE 30, 2012
MINERAL RESOURCES* MINERAL RESERVES*
Category Area kT g/t kOz Category Area kT g/t kOz
  Underground blocks 2,271.5 3.76 274.6   Underground blocks 726.1 3.77 88.1
  Underground pillars 1,901.8 4.27 260.9   Underground blocks 582.1 3.90 72.9
  Open pit milling 1,503.2 1.91 92.3   Open pit milling 268.1 2.36 20.3
MEASURED Open pit leaching - - - PROVEN Open pit leaching - - -
  Rock dumps 29.0 1.87 1.7   Rock dumps - - -
  Slimes 16,653.7 0.73 391.4   Slimes 7,363.4 0.70 164.9
  Sub-total 22,359.2 1.42 1,020.9   Sub-total 8,939.7 1.20 346.2
  Underground blocks 7,168.6 4.72 1,086.7   Underground blocks 1,012.9 3.98 129.6
  Underground pillars 259.9 2.62 21.9   Underground pillars 137.4 3.21 14.2
  Open pit milling 1,549.3 2.24 111.6   Open pit milling 55.7 2.44 4.4
INDICATED Open pit leaching - - - PROBABLE Open pit leaching - - -
  Rock dumps - - -   Rock dumps - - -
  Slimes 2,020.4 0.76 49.4   Slimes - - -
  Sub-total 10,998.2 3.59 1,269.6   Sub-total 1,206.0 3.82 148.2
TOTAL MEASURED AND
INDICATED MINERAL
33,357.4 2.14 2,290.5 TOTAL MINERAL RESERVES 10,145.7 1.52 494.4
               
*Mineral resources include mineral reserves  
                   
  UG/OP blocks 4,369.0 4.31 605.6          
INFERRED Rock dumps 32.0 1.80 1.9          
  Slimes - - -          
TOTAL INFERRED RESOURCES 4,401.0 4.29 607.5

UPDATED MEASURED AND INDICATED MINERAL RESOURCE AND INFERRED MINERAL RESOURCE ESTIMATES FOR INDIVIDUAL NEW DAWN PROPERTIES

The Consolidated Mineral Resources (including Mineral Reserves) and Inferred Mineral Resources presented above are broken down by individual property as shown in the following tables:

 
NEW DAWN MINING CORP
MEASUERED AND INDICATED MINERAL RESOURCE ESTIMATES BY MINING PROPERTY - JUNE 30, 2012
  Measured Indicated Measured and Indicated
OPERATION Kt g/t kOz Kt g/t kOz Kt g/t kOz
Turk and Angelus 3,651.0 1.22 143.4 4,582.3 5.11 753.1 8,233.3 3.39 896.5
Dalny 7,909.2 1.40 356.6 676.6 4.77 103.8 8,585.8 1.67 460.4
Golden Quarry 4,839.1 1.22 190.3 1,362.1 0.59 25.9 6,201.2 1.08 216.2
Camperdown 2,532.0 2.13 173.3 3,280.6 2.11 222.9 5,812.6 1.33 396.2
Old Nic 906.6 1.11 32.4 64.7 4.37 9.1 971.3 2.12 41.5
Venice 2,521.3 1.54 124.9 1,031.9 4.67 154.8 3,553.2 2.45 279.7
TOTAL 22,359.2 1.42 1,020.9 10,998.2 3.59 1,269.6 33,357.4 2.14 2,290.5
                   
*Mineral resources include mineral reserves  
             
NEW DAWN MINING CORP            
INFERRED MINERAL RESOURCE ESTIMATES BY MINING  
PROPERTY - JUNE 30, 2012  
  Inferred  
OPERATION Kt g/t kOz  
Turk and Angelus 2,676.4 4.77 410.4  
Dalny 161.6 5.57 29.0  
Golden Quarry 26.7 2.23 1.9    
Camperdown 984.8 2.43 76.8  
Old Nic 50.7 4.11 6.7  
Venice 500.8 5.14 82.7    
TOTAL 4,401.0 4.29 607.5

UPDATED MINERAL RESERVE ESTIMATES FOR INDIVIDUAL NEW DAWN PROPERTIES

The Consolidated Mineral Reserves presented above are broken down by individual property as shown in the following table:

 
NEW DAWN MINING CORP
MINERAL RESERVE ESTIMATES BY MINING PROPERTY - JUNE 30, 2012
  Proven (P) Probable (Pr)
OPERATION Kt g/t kOz Kt g/t kOz
Turk and Angelus 1,163.9 2.61 97.6 735.4 3.91 92.3
Dalny 6,970.4 0.79 177.3 214.4 4.39 30.2
Golden Quarry 149.6 3.26 15.7 70.3 3.13 7.1
Camperdown 584.8 2.57 48.3 141.4 2.62 11.9
Old Nic 71.0 3.20 7.3 44.5 4.67 6.7
Venice - - - - - -
TOTAL 8,939.7 1.20 346.2 1,206.0 3.82 148.2
 
TOTAL MINERAL
RESERVES (P + Pr)
10,145.7 1.52 494.4  
         
Notes:  The Mineral Reserves for each property are included in the Mineral Resource estimate for that property.
The MRMR estimates in the tables above are presented on a total basis without adjustment for minority
interests. New Dawn, through its subsidiaries, owns 100% of the Turk and Angelus, Old Nic and
Camperdown Mines, and approximately 85% of the Dalny, Golden Quarry and Venice Mines.

 

The Mineral Resources and Mineral Reserves have been estimated using specific and appropriate definition standards created for each property based on the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Mineral Resource definitions referred to in NI 43-101 - Standards of Disclosure for Mineral Projects.

The Mineral Resource estimation methodology for each property is summarized in the following table:

 
NEW DAWN MINING SUMMARY OF RESOURCE ESTIMATION METHODOLOGY
OPERATION METHOD Average Block
Dimension (m)
VOLUME
CALCULATION
GRADE
CALC
High Assay
Cap Value
RESOURCE
CUTOFF
Min Mining
Width (m)
Minimum Parameters Used to Classify Blocks
    X Y Z     (g/t) (g/t)   M I Inf
Turk Manual 2.6 30 30 Survey / Plinning Wt Avge 15 2.00 1.0 3 Int 2 Int 1 Int
Dalny Manual 1.4 30 30 Survey / Plinning Wt Avge 20 1.92 0.8 3 DIS 1/2 DIS Att:I M-HGC
Golden Quarry Computer 5.0 5 5 Triangulation Kriging 8.5 1.76 2.0 8-20 SI 4-7 SI 1-3 SI
Old Nic Manual 1.2 25 40 Survey / Plinning Wt Avge 20.0 (Qtz);
10.0 (Sf)
2.78 1.0 3 DIS 2 Int 1 Int
Camperdown Computer 5.0 5 5 Triangulation Kriging 5 1.30 2.5 10-20 SI 3-9 SI 1-3 SI
Venice Manual 1.2 30 30 Survey / Plinning Wt Avge 20 3.00 0.8 3 DIS 1/2 DIS / 2 Int Att:I M-HGC
Manual Method uses plans/sections X=block width Plinning uses plans/sections Qtz = Quartz Reef M = Measured; I = Indicated; Inf = Inferred Resources
Computer Method uses Vulcan 3D y = along strike distance Triangulation volumes calculated Sf = Sulphide-rich Ore Zone DIS = Development intersection of 30m strike
Modelling Software Z = block height by Vulcan software   Int = Intersection of full reef width (drillhole, X-cut)
    Wt Avge = weighted average   Att:I M-HGC = Attached to indicated Block with
        medium to high geological confidence
        SI = Sample Intersections (1m Bh or channel sample)

For the Turk and Angelus, Dalny, Old Nic and Venice Mines, all of which are reef mines, all estimated calculations were performed manually, using longitudinal and cross sections, with block dimensions as stated in the table above. The X value in the above table is the average reef width of all blocks, but in the calculation, individual blocks were calculated using the average reef-width in that block. The Y value represents the length of the along-strike direction of the block, while the Z-value represents the height of the block, which is the height between mining levels (usually 30m). Volumes were calculated from plans and sections using a plinometer and based on survey data collected for each block in which the reef-width was measured. In all cases, a rock density of 2.67 tons per cubic metre (t/m3) was used in converting volumes to tons (based on historic data for the reefs). Grade estimates were calculated using weighted averages of all assay data within a block, with high assay values being cut down to a maximum value as noted in the table above. The classification of blocks into Resource categories (a) was determined on the basis of the average block grade being greater than the Mineral Resource cut-off (determined at 75% of the calculated pay-limit for each mine) and (b) was dependent on the number of informing intersections and geological confidence as per the table above for the different properties. Informing intersections consist of development intersections (channel sampling at 2m intervals along a drive, raise or cross-cut and cut as a channel across the full width of the exposed reef) or borehole intersections that have shown the full width of the reef (with widths corrected to true widths). Conversion from Mineral Resources to Mineral Reserves was based on (a) application of modifying factors to each block (incorporating items such as dilution and mining losses), (b) whether the average grade of a block was above the pay-limit for the mine after the application of modifying factors, and (c) whether the block was accessible for mining. Where these conditions were fulfilled, Measured Mineral Resource blocks were promoted to Proven Mineral Reserve blocks and Indicated Blocks were promoted to Probable Mineral Reserve blocks.

For the Golden Quarry (GQ) and Camperdown (CA) Mines, in which the ore-bodies are more massive in nature, Mineral Resource estimation was performed using Maptek's Vulcan 3D software. The dimensions of individual blocks within the Block Model (BM) are as per the above table. The dimensions of the entire BM for GQ were 190x410x300m and for CA were 1000x1000x400m, along the X, Y, Z axis of the model.  For GQ, historic data from 239 surface diamond drill holes, 860 underground diamond boreholes, and 2,243 underground channel sampling traverses were used to produce 22,574 1m composite samples for use in the estimation process. For CA, historic data comprising 176 surface diamond boreholes, 869 surface percussion boreholes, 59 underground diamond boreholes, and 470 underground channel samples were used to produce 10,375 1m composite samples for use in the estimation process. Grade estimation was performed by Maptek Consulting, and the process was conducted using Ordinary Kriging methodology using the 1m composites created from the validated borehole and channel sampling databases. A bulk density of 2.67t/m3 was used for GQ, while a bulk density of 2.75t/m3 was used at CA, to calculate tonnages from the volumetric estimates of the Mineral Resources block model.

In the case of dumps which are included in the Measured Resource estimates, volumes were established using either traditional surveys or Maptek's iSite survey system, and grades were obtained via a comprehensive auger drilling program in which samples collected from each borehole were composited to provide a grade value. In addition, metallurgical testwork was also performed on the composite samples to determine potential grades and recoveries. A bulk density of 1.30t/m3 was used for all slimes dumps and a bulk density of 1.60t/m3 was used for rock dumps. Where a current survey for volume could not be conducted, the volume was measured from historic plans and an Indicated Mineral Resource category was assigned to the dump.

The updated mineral resource estimates were prepared in accordance with NI 43-101 guidelines using the CIM Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions, and adopted by the CIM Council on December 11, 2005.  The technical information in this news release has been prepared under the supervision of Michael M. Othitis, an independent qualified person for purposes of NI 43-101.  Technical reports on each property, prepared by Mr. Othitis in compliance with 43-101, are expected to be filed by the Company on SEDAR on or about December 20, 2012.

About New Dawn

New Dawn is a junior gold company listed on the Toronto Stock Exchange with 45,612,383 common shares outstanding that is focused on developing its gold mining operations in Zimbabwe.

New Dawn owns 100% of the Turk and Angelus, Old Nic and the Camperdown Mines. In addition, through its Falcon Gold Zimbabwe Limited ("Falgold") subsidiary, New Dawn currently owns approximately 85% of the Dalny, Golden Quarry and Venice Mines, and a portfolio of prospective exploration acreage in Zimbabwe. With the exception of the Venice Mine, all of these mines are currently in production and are divided into three major gold camps.

New Dawn owns approximately 85% of the shares of its Falgold subsidiary, with the remaining approximately 15% of the shares being owned by other shareholders and traded on the Zimbabwe Stock Exchange.

The Company is in the process of acquiring the shares of Falgold that it does not already own, in accordance with the pending Falgold Scheme of Arrangement (as described in previously issued news releases dated September 25, 2012, October 4, 2012 and November 23, 2012).  The acquisition of the Falgold minority shares by New Dawn is intended to facilitate implementation of New Dawn's proposed Plan of Indigenisation at the Zimbabwe subsidiary level.  The Falgold Scheme of Arrangement is conditional upon, and will not become effective until, the satisfaction of the remaining conditions precedent, which consist primarily of the receipt of necessary regulatory approvals in Zimbabwe. The satisfaction of the conditions precedent could take up to several months.

In addition to gold production, New Dawn is also exploring prospective ground employing modern exploration techniques in Zimbabwe, a country that is proven to be geologically rich, highly prospective, and significantly under explored.

New Dawn, with its large gold resource, existing mine sites and production facilities, and current exploration programs, is a growing gold mining company in Zimbabwe, active in both gold production and gold exploration.

Information on New Dawn's gold Mineral Reserve and Mineral Resource estimates is included at the Company's website at www.newdawnmining.com and in the Company's filings on SEDAR at www.sedar.com.

The Toronto Stock Exchange 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 Michael M. Othitis, who is an independent 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, indigenisation 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 - 2011.  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.

 

 

 

 

SOURCE: New Dawn Mining Corp.

For further information:

Investor Relations Contact:  Richard Buzbuzian +1 416.585.7890
Visit New Dawn on the internet:  www.newdawnmining.com or
E-mail New Dawn at:  info@newdawnmining.com