New Dawn ramps up gold output

HARARE - Zimbabwe-focused junior gold miner New Dawn Mining Corporation gold production for the year ended September 30, 2012, surged 41 percent to 37 623 ounces from 26 689 ounces in the previous year.

Revenue from gold sales for the fiscal year increased by 62 percent to  $61 947 433, as compared to $38 293 670 for the year ended September 30, 2011.

The Toronto Stock Exchange listed company added that its targeting fiscal 2013 gold production to increase by 41 percent to 53 000 ounces.

“For the quarter ended September, consolidated gold production was 10 256 ounces (9 370 ounces attributable to New Dawn, after adjusting for the minority interests’ share of gold production), as compared to consolidated gold production for the quarter ended September 30, 2011 of 8 814 ounces, an increase of 16,4 percent,” said the gold miner.

The mining concern said in contrast to consolidated gold production for the previous quarter ended June 30, of 9 536 ounces, consolidated gold production for the current quarter ended September 30, 2012 increased by 7,6 percent.

“Consolidated gold sales for the quarter ended September were $16 486 612, as compared to $14 059 739 in the corresponding period registering an increase of 17,3 percent,” said New Dawn.

As compared to consolidated gold sales for the previous quarter ended June of $15 162 843, consolidated gold sales for the current quarter ended September increased by 8,7 percent.

 “This increase in revenue for the quarter ended September 30, 2012 was accomplished as a result of higher output and a marginally higher average price per ounce of gold sold,” said the company.

“At September 30, 2012, an additional 2 618 ounces of gold awaited export documentation for sale in South Africa, and will be included in October 2012 sales.

“The Company will file its audited consolidated financial statements and related materials for the fiscal quarter and years ended September 30, 2012, and report its consolidated results of operations for such periods, on or before the filing deadline.”

New Dawn is listed on the Toronto Stock Exchange that is focused on expanding its gold mining operations in Zimbabwe.  

New Dawn owns 100 percent of the Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine.

In addition, New Dawn, through its Falgold subsidiary, currently owns approximately 85 percent of the Dalny Mine, the Golden Quarry Mine and the Venice Mine (currently not in operation), and a portfolio of prospective exploration acreage in Zimbabwe.

These six mines, five of which are currently operational, are operated as three gold camps.

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 mine sites and production facilities, and current exploration programmes, is a growing gold mining company in Zimbabwe, active in both gold production and gold exploration.

Meanwhile, gold miners in Zimbabwe produced 11 140 kilogrammes (24 560 pounds) of gold in the first nine months of the year, 61 percent more than the same period a year earlier.

The Chamber of Mines Zimbabwe (Comz) yesterday in a statement said gold output for 2012 should reach 15 000 kilogrammes.

Zimbabwe earned $1,4 billion from mineral sales through to September 30, according to the chamber, which represents most medium and large-scale miners.

Last year, Zimbabwe produced 12 993 kilogrammes of gold.

Zimbabwe’s gold production fell to an all-time low of three metric tonnes in 2008, at the height of a political and economic crisis which eased in 2009 with the introduction of a multiple currency regime.

Earnings from gold accounted for over half Zimbabwe’s mineral exports in the first nine months of the year, the chamber said, without providing data for 2011.

Total mineral exports, excluding ferrochrome, diamonds and coal, earned Zimbabwe $2,01 billion in the same period, the chamber said. - John Kachembere

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