35,000 to 50,000 oz Potential Gold Production
Expansion Plans Fully Funded From Operating Cash Flow
TORONTO, Sept. 16 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company") has implemented a program to increase its current production at its Turk and Angelus Mines in Zimbabwe to an annual production rate of 35,000 to 50,000 ounces of gold. This program has been designed to increase gold production on a staged basis through mine development and expansion. The program is expected to be fully funded by operating cash flow.
The Turk Mine is expected to achieve its first annual production target of 14,000 ounces of gold in October 2009. The next annual production target of 22,000 to 23,000 ounces of gold is expected to be reached by the end of the third quarter of calendar 2011. Gold output is expected to continually and steadily increase between now and the third quarter of calendar 2011. Concurrently, management also intends to test a new lower energy fine grinding technology that, if successful, is expected to both improve recoveries and further lower cash costs to below $400 per ounce of gold produced. Currently, cash costs at the Turk mine are targeted at approximately US$450 per ounce of gold produced based on annual production levels of 14,000 to 15,000 ounces of gold. As production increases beyond this level, cash costs are anticipated to decrease further, into the range of US$400 per ounce of gold.
From the 22,000 to 23,000 ounce production level, further incremental increases to production are anticipated as the Company increases development and stoping machines and adds further processing capacity. Management estimates the Turk and Angelus Mines have the potential to reach an annual production rate of 35,000 to 50,000 ounces of gold within 4 years or less. At an annual production rate of 50,000 ounces of gold, the Turk and Angelus Mines have a projected mine life in excess of 20 years.
"The Turk and Angelus Mines contain a very significant resource. At estimated full production capacity of 35,000 to 50,000 ounces of gold per annum, the life of mine would be greater than 20 years. Our goal is to achieve maximum sustainable output at the Turk and Angelus Mines, while concurrently seeking to acquire other production assets and continuing development work on our exploration properties, in order to become a 100,000 ounce producer," commented Ian Saunders, President and CEO. "Our goal is to build New Dawn into a mid tier gold producer and mine developer within an economically recovering Zimbabwe as our geographic focus."
2009-2010 Corporate Overview
New Dawn is a junior gold company engaged in the production of gold and related activities, including exploration, development, mining and processing, in southern Africa.
The Company's principal assets are the actively producing Turk Mine in Zimbabwe, the adjacent advanced exploration project Angelus Mine in Zimbabwe, and a portfolio of exploration properties in Zimbabwe.
New Dawn has positioned itself as a Zimbabwe-focused gold company that is concentrating its efforts on expanding production at the Turk Mine and advancing its exploration properties by identifying and drilling defined targets, while also assessing value accretive acquisitions in the region.
Management is currently assessing its options with respect to the Blue Dot project located in South Africa in order to preserve liquidity and maximize shareholder value in the near term.
1. Production Expansion at Turk Mine:
New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum.
A production facility capable of processing up to 400 tonnes per day or 12,000 tonnes per month is currently in place and operating. The production facility is capable of easily being expanded to 580 tonnes per day or 17,500 tonnes per month. The Company maintains a highly experienced work force at Turk Mine of over 770 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.
An updated NI 43-101 compliant Reserve and Resource estimate for the Turk and Angelus Mines is expected to be received from SRK International by October/November 2009.
The Turk Mine and the Angelus Mines are contained within a large contiguous block of claims, with a total area of 2,171 hectares. The Company also holds an additional 357 hectares of other claims within 10 kilometers of the Turk Mine.
Moving forward, New Dawn will be concentrating on increasing production at Turk Mine and realizing cost efficiencies to reduce overall cash costs where ever feasible.
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.
New Dawn continues to position itself as the natural in-country consolidator of gold mining properties and companies in Zimbabwe. New Dawn is currently assessing value accretive opportunities in Zimbabwe and the surrounding region, including advanced stage exploration properties, as well as other gold mining companies with production and resources.
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, 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 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 2008 Annual Information Form. 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 Email us at: firstname.lastname@example.org