New Dawn gold reserves up

HARARE - Zimbabwe focused junior gold producer New Dawn Mining Corporation (New Dawn) says an exploration has revealed that proven and probable mineral reserves on its mining properties have increased by 123 percent.

This means that the Toronto Stock Exchange-listed miner has 494 400 ounces of gold grading 1,52 grammes per tonne from 10 145 700 tonnes of mineralised material.

Ian Saunders, New Dawn’s president and chief executive, said the group has been systematically reviewing, upgrading and updating its geological and mining databases by conducting cost effective exploration programmes.

“New Dawn has been able to add significantly to its gold resource base at a low cost relative to industry peers,” Saunders said.

“As production levels trend upward, these additional gold ounces will prove to be a valuable asset as New Dawn continues its focus on increasing sustainable gold production over the long-term,” added Saunders.

The gold producer also indicated a 44,1 percent increase in measured and indicated mineral resources to more than two million ounces of gold grading 2,14 grams per tonne from 33 357 400 tonnes of mineralised material.

“This points to a projected increase of 700 500 ounces of gold,” Sanders said.

The exploration also indicated a one percent increase in inferred mineral resources to 607 500 ounces of gold grading 4,29 g/t from 4 401 000 tons of mineralized material highlighting an increase of 50,500 ounces of gold.

New Dawn owns 100 percent of the Turk and Angelus, Old Nic and the Camper down Mines.

In addition, through its Falcon Gold Zimbabwe Limited (Falgold) subsidiary, New Dawn owns approximately 85 percent of the Dalny, Golden Quarry and Venice Mines, and a portfolio of prospective exploration acreage in Zimbabwe.

With the exception of Venice Mine, which is under care and maintenance, all of these mines are currently in production and are divided into three major gold camps.

The gold producer is currently in the process of acquiring the Falgold shares in accordance with the pending scheme of arrangement.

New Dawn’s acquisition of the Falgold minority shares is intended to facilitate implementation of the former’s proposed plan to comply with indigenisation laws.

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

The Chamber of Mines Zimbabwe (Comz) has said gold output for 2012 should reach 15 000 kilogrammes.

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. - Business Writer

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