- Gold production for January 2010 was 1,160 ounces or 36.1 kg's, as
compared to gold production for December 2009 of 874 ounces or
- At January 2010 month-end, an additional 512 ounces or 16.2 kg's of
gold were awaiting export for sale in South Africa, which will be
included in February 2010 sales
- Gold sales for January 2010 were US$903,200 at an average gold price
of US$1,117 per ounce, as compared to US$1,267,703 in December 2009
at an average gold price of US$1,135 per ounce
- 100% of gold sales were received in US Dollars
TORONTO, Feb. 11 /CNW/ - New Dawn Mining Corp. (TSX: ND) reported that gold production at its Turk Mine in Zimbabwe for January 2010 increased to 1,160 ounces or 36.1 kg's, as compared to 874 ounces or 27.1 kg's produced in December 2009.
The increase in production in January 2010 as compared to December 2009 was primarily attributable to 4 additional production days in January 2010, as December 2009 had 5 non-working days due to statutory Christmas holidays.
At January 2010 month-end, an additional 512 ounces or 16.2 kg's of gold awaited export for sale in South Africa, as compared to 393 ounces or 12.2 kg's of gold at December 2009 month-end. Gold held for export at month-end is included in sales in the following month.
As a result of high month-end gold inventories at January 31, 2010, gold sales for January 2010 totalled $903,200 at an average sales price of $1,117 per ounce, as compared to December 2009 sales of US$1,267,703 at an average gold price of $1,135 per ounce.
100% of New Dawn's gold sales from the Turk Mine were received in US dollars.
"January 2010 gold output numbers are indicative of the continued steady state production level that we have achieved as the first step towards ultimately reaching our goal of 35,000 to 50,000 ounces of yearly gold production from the Turk/Angelus mine complex. With our recently announced increase in processing capacity at Turk Mine to 580 tonnes per day, we expect further increases in gold production during 2010," commented Ian R. Saunders, President and CEO. "Cash flow from our gold sales will allow us to continue to ramp up production at the Turk/Angelus mine complex, while internally funding our exploration activities in Zimbabwe. We intend to continue to pursue value accretive acquisition opportunities in Zimbabwe utilizing our knowledge and expertise, having established a first mover advantage."
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: email@example.com