TORONTO, Feb. 12 /CNW/ - New Dawn Mining Corp. (TSX: ND), a Zimbabwe-focused gold mining company, comments on the recent gazetting of Statutory Instrument 21 of 2010 relating to Zimbabwe's Indigenization and Economic Empowerment Regulations. As previously reported, the Indigenization and Economic Empowerment Act 14, 2007 (the "Act"), which was passed by parliament towards the end of 2007, gazetted on March 7, 2008 and was signed into law on April 17 2008, provided for all companies operating in Zimbabwe to arrange for 51% of their shares or interests therein to be owned by indigenous Zimbabweans.
On January 29, 2010, the Zimbabwe Government published regulations with respect to the Act that include the requirement for companies operating in Zimbabwe to provide specified information to the Minister of Youth Development, Indigenization and Empowerment (the "Minister"), including an indigenization implementation plan, by April 15, 2010. That information, together with responses from all sectors of the Zimbabwe economy, will be used as a basis for determining what amount less than 51% shall apply to any sector or subsector and the maximum period for achieving indigenization. The weighting that may be given for socially and economically desirable activities may be taken into account for a business to be said to be compliant without necessarily indigenizing 51% or the lesser prescribed percentage for any sector or subsector. The regulations require the Minister to complete the determinations by February 28, 2011.
The Chamber of Mines of Zimbabwe is actively consulting with the relevant government authorities to convey its members' views on this matter and to work towards finalizing the indigenization and empowerment metrics for the mining industry.
New Dawn is reviewing these new regulations in order to understand the potential impact on the Company's Zimbabwe-focused mining operations and business plans, and will report to shareholders as more information becomes available.
Ian R. Saunders, New Dawn's President and CEO, commented, "As a past president of the Chamber of Mines and a current member of the Chamber's Executive Committee, I can reliably inform shareholders that the indigenization issue is something that the Chamber of Mines has been addressing with the Government of Zimbabwe for some time. The Chamber of Mines continues to engage with the Government of Zimbabwe on this issue, and will now do so with the clarity brought about by the promulgation of the new regulations. We believe that as all stakeholders in the country are currently working towards the economic recovery of Zimbabwe, and that the mining industry will be one of the leaders in the economic recovery of Zimbabwe, the indigenization legislation in respect of mining should reflect this perspective. Once the level and form of indigenization, as it relates to the mining industry, under the umbrella of these new regulations, is determined, this clarity and certainty will allow New Dawn to move forward and continue to develop and expand its business operations in Zimbabwe".
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.
Currently, a production facility capable of processing up to 580 tonnes per day or 17,500 tonnes per month is in place and operating. The Company maintains a highly experienced work force at Turk Mine of over 950 people.
At New Dawn's Turk and Angelus Mines, the most recent NI 43-101 report documented an aggregate of 959,900 ounces of gold resource grading between 3.8 - 6.1 g/t, with an additional inferred mineral resources of 347,600 ounces of gold grading 5.16 - 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.
Additionally, the Company has a portfolio of exploration properties in Zimbabwe that includes the Consolidated Bubi Gold Fields, Consolidated Midlands Gold Fields and Consolidated Shurugwi Gold Fields properties.
Further information on New Dawn's gold reserves and resources can be obtained at the Company's website at www.newdawnmining.com or in 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. 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: http://www.agoracom.com/ir/NewDawn 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 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.
SOURCE New Dawn Mining Corp.
For further information: For further information: Investor Relations Contact: Richard Buzbuzian, (416) 585-7890; President and Chief Executive Officer: Ian R. Saunders, (416) 585-7890; Visit us on the internet: http://www.newdawnmining.com, or E-mail us at: firstname.lastname@example.org