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.
