TORONTO, Feb. 13 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or
the "Company") announces that its financial results and corresponding
Management Discussion and Analysis for the period ended December 31, 2008,
have now been filed on Sedar and are also available to view on the Company's
The Company prepares its consolidated financial statements in U.S.
Dollars and in accordance with Canadian Generally Accepted Accounting
The first quarter was highlighted by the following activities:
- Completion of updated technical reports compliant with NI 43-101 and
filed on SEDAR and the Company's website that reported an aggregate
of 977,819 ounces of gold reserves and resources grading between
3.9-5.0 g/t, with additional inferred mineral resources of
347,600 0unces of gold grading at 5.19 g/t, all at a 2.45 g/t cut-off
and US$875/oz gold price;
- Wet commissioning of a 180 tonne per day processing plant in South
Production decision pending;
- Continued maintenance of a 400 tonne per day processing plant in
Review for production resumption now underway;
- Cash and cash equivalents of $3.943 million at December 31, 2008;
- Working capital of $4.975 million at December 31, 2008;
- Company remains debt free and 100% un-hedged;
The Company is engaged in the production of gold and related activities,
including exploration, development, mining and processing in the Southern
African Development Community ("SADC"). The Company's principal assets are:
the producing, but currently on care and maintenance, Turk Mine in Zimbabwe;
the advanced exploration project Angelus Mine in Zimbabwe; and the advanced
exploration project Blue Dot Property in South Africa.
The Company has 2 production facilities; one in Zimbabwe that is
currently capable of processing up to 400 tonnes per day or 12,000 tonnes per
month, and a facility in South Africa that is rated at 180 tonnes per day or
5,500 tonnes per month. New Dawn also maintains a highly experienced work
force of over 900 people in Zimbabwe and South Africa.
New Dawn has a significant resource base at its Turk, Angelus and Blue
Dot Mine Properties. As at December 31, 2008, using a 2.45 g/t cut-off grade
based on US$875/oz gold, the aggregate mineral resources and reserves for the
three properties, based on NI 43-101 compliant technical reports, are as
Mass (t) Grade (g/t) Ounces
-------- ----------- ------
Proven and Probable Reserves 1,307,810 3.94 166,444
Measured and Indicated Resources 5,016,130 5.00 811,375
--------- ---- -------
Total - Reserves and Resources 6,323,940 4.78 977,819
--------- ---- -------
--------- ---- -------
Inferred 2,082,000 5.19 347,600
The Turk Mine and the Angelus Mine are contained within a large
contiguous block of claims, with a total area of 2,171 hectares. As well, the
Company holds an additional 357 hectares of other claims within 10 kilometers
of the Turk Mine. The Blue Dot Property consists of two blocks of mineral
rights of 1,145 hectares and 2,746 hectares.
The Company has other assets that form a portfolio of exploration
properties, and include the Consolidated Bubi Gold Fields, consolidated
Midlands Gold Fields and consolidated Shurugwi Gold Fields properties, all of
which are located in Zimbabwe.
First Fiscal Quarter 2008 (Three Months Ended December 31, 2008)
SOURCES and LIQUIDITY
At December 31, 2008, cash and cash equivalents were $3.943 million, an
$0.851 million decrease from September 30, 2008 The Company has no long-term
debt obligations, no unfunded work program of the balance of 2009, and has
working capital of $4.975 million at December 31 , 2008.
The Company's sole source of operating revenue during the past three
financial years, and at present, is from the sale of gold bullion from the
Turk Mine. With the mine on care and maintenance during the quarter ended
December 31, 2008, no revenue was generated during this period. Other sources
of revenue such as incidental interest income and other miscellaneous items
are included as other income and excluded from operating income.
As a result of the Turk Mine being on temporary care and maintenance,
operating costs for the quarter ended December 31, 2008 were reduced. Total
operating costs, including all corporate and other general operating expenses,
were approximately $0.967 million for the quarter. In addition to corporate
and general and administrative expenses, operating costs associated with the
care and maintenance of the Turk Mine were necessary to maintain the work
force to the extent possible, and employ the work force on general clean-up
and equipment maintenance, while also ensuring that all training programs for
all staff are up to date and implemented. The intention has always been to
retain as many staff as possible, particularly experienced people, to allow
for a rapid start-up when conditions are right.
With the goal of becoming a meaningful gold producer in the region, New
Dawn is well-established in southern Africa, owning both mines and processing
facilities, as well as substantial developmental acreage in Zimbabwe.
To attain this goal, the Company, in the next quarter and beyond, will
continue with its exploration and mine development work at its properties,
while, exploring other potential opportunities in the region.
Additionally, as a result of the new Monetary Policy Statement announced
by the Reserve Bank of Zimbabwe on February 2, 2009, the Company has initiated
a complete review of the Turk Mine with focus on the potential resumption of
production and further mine development (see the Company's press release dated
February 5, 2009).
The Company's working capital at December 31, 2008 is $4.975 million.
Management believes the current working capital is sufficient to fund the
Company's planned exploration and development activities and overheads through
the remainder of fiscal 2009 and beyond, including all currently planned
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
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 May 29, 2008 Prospectus. 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 Management
Discussion and Analysis 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.
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