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New Dawn Mining Corp.: Golden Quarry Mine Resumes Gold Production

09.06.2011  |  CNW
Highlights:

- New Dawn now operates 4 producing gold mines
- Golden Quarry also represents an excellent exploration opportunity
- New Dawn expects to end 2011 at an annualized production rate of 38,000 to 40,000 ounces of gold


TORONTO, June 9, 2011 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or the "Company") reported that the Company has resumed gold production at the Golden Quarry Mine, located 180km northeast of Bulawayo, Zimbabwe. New Dawn now operates four producing gold mines in Zimbabwe and expects to end 2011 at an annualized production run rate of 38,000 to 40,000 ounces of gold.

Ian R. Saunders, President and CEO of New Dawn, commented, "New Dawn has essentially completed its evaluation of the Central African Gold assets and their integration into New Dawn's consolidated operating structure, and in the process, has been able to lay the groundwork to substantially increase sustainable gold production in future periods. The Company's recently reported production figures, revenue and net income for the quarter ended March 31, 2011 are an indication of the magnitude of the opportunity which is just beginning to be realized under the umbrella of New Dawn. With the Golden Quarry Mine now in production, New Dawn has gold production from four separate mines in Zimbabwe, and will also be accelerating exploration on six high priority targets now that the dry season in Zimbabwe is upon us."


Gold Production at the Golden Quarry Mine

The Golden Quarry Mine was one of five past producing mines which New Dawn acquired in June 2010, and consists of an underground operation with a dedicated milling circuit and beneficiation plant.

After several years on care and maintenance, the Golden Quarry Mine is now producing gold less than one year after New Dawn's acquisition of the property. Based on the mine plan that is now being implemented, the Company expects that the Golden Quarry Mine will contribute meaningful gold production to New Dawn's total annualized gold output while also providing significant exploration potential.


Exploration Potential at the Golden Quarry Mine

Located within the Gweru-Shurugwi Greenstone Belt, similar to the Greenstone belts found in both Canada, and Australia, this belt had produced 6.5% of Zimbabwe's total gold production through 1984. Mineralization at the Golden Quarry Mine occurs in a brecciated stockwork of quartz and quartz-carbonate veins and veinlets within a wide alteration zone. Excellent exploration potential exists both underground and at surface, and the property remains very much under explored, with evidence along strike and down dip extensions being present.

Additionally, to the north of the Golden Quarry Mine, trenching has revealed numerous NNE trending quartz vein systems, and preliminary work shows additional stockwork systems could be present.

The exploration potential at the Golden Quarry Mine forms only one of six high priority exploration targets which New Dawn intends to actively pursue in 2011 and 2012. All of these targets exhibit the potential for large tonnage, medium grade discoveries potentially amenable for bulk mining.


Corporate Ownership Structure

New Dawn owns approximately 85% of Falcon Gold Zimbabwe Ltd., which in turn owns, among other mining assets in Zimbabwe, 100% of the Golden Quarry Mine. Approximately 15% of the issued common shares of Falcon Gold Zimbabwe Ltd. are listed and trading on the Zimbabwe Stock Exchange.


ABOUT NEW DAWN

New Dawn is a Zimbabwe-focused junior gold company that is currently expanding its consolidated annualized gold production to 38,000 to 40,000 ounces by the end of 2011, and then to 50,000 to 60,000 ounces 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, New Dawn has an approximately 85% equity interest in the Dalny, Golden Quarry and Venice Mines, and a large portfolio of prospective exploration acreage in Zimbabwe. These six mines, four of which are now operational, 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 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.




For further information:

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
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