During the quarter ended June 30, 2010, gold production output levels were affected by unscheduled power cuts. As previously announced, the power situation at Turk Mine is being stabilized with the installation of diesel generators.
The engineering design for the generators has been completed, tenders have been received and adjudicated, and equipment for a full turnkey 3MVA has been ordered. The generators that are being installed are expected to provide electrical capacity sufficient for New Dawn to be able to reach and maintain its next production target at Turk Mine of 22,000 to 23,000 ounces of annualized gold production. Installation of the generators is expected to be completed during the third calendar quarter of 2010.
During the quarter ended June 30, 2010, gold sales totalled $3,549,786 at an average sale price per ounce of gold of US$1,194, as compared to gold sales for the quarter ended March 31, 2010 of $3,801,480 at an average sales price per ounce of gold of US$1,109.
100% of sale proceeds were received in US dollars.
At June 2010 month-end, an additional 836 ounces or 26 kg’s of gold awaited export documentation for sale in South Africa, and will be included in July 2010 sales.
As previously announced, New Dawn is now reporting production output and sales figures on a quarterly basis, rather than on a monthly basis, as production output has reached normalized levels.
The aforementioned production and sales figures for the quarter ended June 30, 2010 do not include the Zimbabwe gold properties of Central African Gold Plc ("CAG"), which were conducting limited operations or were on care and maintenance through June 30, 2010. New Dawn acquired an approximate 89% equity interest in CAG in mid-June 2010.
About New Dawn …
New Dawn is a Zimbabwe-focused junior gold company currently expanding gold production at its Turk and Angelus Mines, exploring for gold, and identifying and pursuing other development projects, as well as actively assessing other value accretive acquisition opportunities in Zimbabwe.
New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that has the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. New Dawn owns the property outright on which these mines are located.
New Dawn is currently developing a revised and updated strategic business plan in light of its acquisition of a controlling interest in CAG, with a view towards reaching consolidated annualized gold production of 50,000 to 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces within four to five years, and then ultimately to 200,000 to 250,000 ounces.
Additionally, the Company is reviewing and assessing CAG’s extensive portfolio of exploration properties in Zimbabwe for future investment and development.
New Dawn’s plans with respect to CAG’s assets and operations will be developed and implemented taking into account New Dawn’s ongoing discussions with and submissions to the Zimbabwe authorities.
For further information on New Dawn’s gold reserves and resources, visit the Company’s website at www.newdawnmining.com or 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.
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.
For Further Information:
Investor Relations Contact: Richard Buzbuzian +1 416.585.7890 President and Chief Executive Officer: Ian R. Saunders +1 416.585.7890