- Generators to provide sufficient auxiliary power to meet gold
- Production losses from power cuts to be minimized
- Financial and technical resources in place
TORONTO, May 5 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company") has completed the Technical Studies and Operational Modeling for the installation of diesel powered generators that will provide the electrical capacity sufficient to ensure New Dawn's next production target of 22,000 to 23,000 ounces of annualized gold production can be realized and maintained.
New Dawn has issued commercial and technical enquires to suitable vendors to provide electrical diesel generators designed to minimize production losses resulting from power cuts. New Dawn has sufficient cash resources to acquire and install the system, either through purchase or lease.
Power shortages have been identified as a strategic risk by management that could potentially limit production output and adversely effect operating results of the Company. At present, Zimbabwe has insufficient internal power generating capacity to fulfill domestic requirements and there has been a significant increase in power cuts since early March 2010, which has resulted in a significant loss of operating shifts and ore processing at the Turk Mine.
In addition, the power utility has not been able to follow its existing load shedding schedule, which has made contingency plans implemented by management ineffective in this regard. The result has adversely affected production output and costs at the Turk Mine. New Dawn views the installation of the new diesel powered generators as an effective solution to provide the electrical capacity sufficient for the Company to be able to realize its next production target of 22,000 to 23,000 ounces of annualized gold production by mid-2011.
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 900 people.
Additionally, the Company has a portfolio of exploration properties in Zimbabwe that includes the Consolidated Bubi 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.
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