New Dawn Increases its Ownership in Central African Gold to 100%
TORONTO, June 6, 2011 /CNW/ --
TORONTO, June 6, 2011 /CNW/ - New Dawn Mining Corp. (TSX: ND) ('New Dawn' or the 'Company') announced that it has completed the
acquisition of the remaining minority interest shares of Central
African Gold Limited ('CAG'), and now owns 100% of CAG. As previously
reported, New Dawn acquired an 88.7% controlling interest in CAG on
June 16, 2010, and subsequently increased its interest in CAG to 95.8%
at March 31, 2011 and to 96.8% through May 13, 2011.
Ian R. Saunders, President and CEO of New Dawn, commented, 'New Dawn now
owns 100% of Central African Gold and, as such, is fully integrating
CAG's assets into its overall operations in order to implement the
Company's plans to substantially increase sustainable gold production
from its extensive array of gold mining properties in Zimbabwe. The
consolidated production, revenue and net income figures recently
reported for the quarter ended March 31, 2011 are the first indications
of the upside potential as a result of the CAG acquisition.'
As a result of the acquisition of CAG, New Dawn has substantially
increased its gold resource base and related mining capacity necessary
to achieve current annualized gold production targets. New Dawn expects
to reach 38,000 to 40,000 ounces of annualized gold production by the
end of 2011, and looks to further increase gold production to 50,000 to
60,000 ounces of annualized gold production by late 2012, with a target
of 100,000 ounces of annualized gold production by 2015.
ABOUT NEW DAWN
New Dawn is a Zimbabwe-focused junior gold mining company that is
currently expanding its consolidated annualized production to 38,000 to
40,000 ounces of gold by the end of 2011, and then to 50,000 to 60,000
ounces of gold within the next 18 to 24 months. New Dawn targets
further increasing annualized gold production to 100,000 ounces within
the next four to five years.
New Dawn owns 100% of the Turk/Angelus Mine Complex, the Old Nic Mine
and the Camperdown project. In addition, it has an 85% equity interest
in the Dalny, Golden Quarry and Venice Mines and a large portfolio of
prospective exploration acreage in Zimbabwe. These six mines, three of
which are now operational with a fourth about to resume production, are
divided into three significant gold camps and the Company is in the
process of expanding production at these sites. All properties and
exploration projects are located in Zimbabwe.
In addition to its gold production, New Dawn is also actively exploring
on highly prospective ground employing modern exploration techniques
and deploying capital in Zimbabwe, a country that is proven to be
geologically rich, highly prospective, and significantly under
explored.
New Dawn, with its large gold resource, existing production facilities
and current exploration efforts, is well on the path to becoming a
mid-tier gold mining company in Zimbabwe, active in both gold
production and gold exploration.
Information on New Dawn's gold reserve and resource estimates is
included 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 - 2010. 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/06/c2680.html
Investor Relations Contact: Richard Buzbuzian 1 416.585.7890
President and Chief Executive Officer: Ian R. Saunders 1 416.585.7890
Visit us on the internet: http://www.newdawnmining.com or
Email us at: info@newdawnmining.com