Turk Mine to be placed on "Care and Maintenance" for time being
TORONTO, Oct. 3 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or
the "Company") reported that it has determined to suspend gold production at
the Turk Mine in Zimbabwe and place the mine on temporary "care and
maintenance" effective October 3, 2008. This action was taken as a result of
the continued non-payment of amounts receivable for the sale of gold to the
Reserve Bank of Zimbabwe, as well as excessively high operating costs caused
by unrealistic exchange rates and hyper-inflationary pressures in general. In
addition, exploration work on the adjacent Angelus Mine has been suspended
until economic conditions in Zimbabwe improve. The Company expects to maintain
this care and maintenance program through no later than December 2008.
New Dawn is committed to maintaining and expanding its Zimbabwe
operations. New Dawn anticipates that when conditions stabilize, it will be in
a position to quickly re-activate mining activities in Zimbabwe. Accordingly,
the changes currently being implemented are designed to maintain the over-all
operating infrastructure of the mine and allow for a rapid resumption of
mining activities when economic conditions in Zimbabwe allow.
These actions will not cause any immediate layoffs, as the existing
workforce will be used to manage the mine site and infrastructure under the
care and maintenance program.
The uncertain economic conditions in Zimbabwe have not affected the
Company's Blue Dot gold mining project in South Africa, which is in the final
stages of evaluation leading to a production decision in late 2008.
The Company is continuing to evaluate the situation in Zimbabwe on an
on-going basis and will be revising this program as conditions change. The
Company intends to conduct a further financial review of its Zimbabwe
operations in early January 2009 and will revise and update its Zimbabwe
operating plans at that time, at which time the Company expects to make an
About New Dawn Mining Corp.
The Company is engaged in the production of gold and gold exploration in
the Southern African Development Community (SADC) region. The Company produces
gold from the 100%-owned Turk Mine, located approximately 55 km north of
Bulawayo in Zimbabwe, which has a total resource base of over one million
ounces of gold. The Company also has a 100% interest in the Angelus Mine, an
exploration project, adjacent to the Turk Mine. These two properties are
contained within a large contiguous block of claims, with a total area of
2,171 hectares. The Company also has a number of green fields and advanced
gold exploration projects in Zimbabwe Including a 51% joint venture interest
to exploit oxide gold resources and a 49% joint venture interest to produce
sulphide gold resources. The Company also has five Exploration and Life of
Mine Royalty Agreements on other gold projects in Zimbabwe in historical
producing districts. In South Africa, the Company has a 74% interest in the
Blue Dot Gold Mine, located approximately 300 km west of Johannesburg, which
is in the final stages of evaluation leading to a production decision in late
The Company's objective is to be in a position to produce at least
100,000 ounces of gold annually from a resource base of at least five million
ounces of gold within five years. The Company intends work toward this goal
through increased gold production from Zimbabwe and through the acquisition of
other gold projects in the Southern African region and possibly elsewhere.
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.
For further information:
For further information: President and Chief Executive Officer: Ian R.
Saunders, (416) 585-7890; Investor Relations Contact: Darryl J. Harding, (416)
585-7890; Visit us on the internet: http://www.newdawnmining.com or Email us