21 December 2012

Zimbabwe: New Dawn Reserves Up 123 Percent

ONE of the country's leading gold producers, New Dawn, has recorded an increase of 123 percent in mineral reserves that is set to result in an increase in gold production of 272 600 ounces.

The company says it has recorded a 123 percent increase in proven and probable mineral reserves to 494 400 ounces of gold grading 1,52g/t from 10 145 700 tonnes of mineralised material which is an increase of 272 600 ounces of gold.

The Zimbabwe-focused gold producer also said it has recorded a 44,1 percent increase in measured and indicated mineral resources to 2 290 500 ounces of gold grading 2,14g/t from 33 357 400 tonnes of mineralised material which is an increase of 700 500 ounces of gold.

This is in addition to a 9,1 percent increase in inferred mineral resources to 607 500 ounces of gold grading 4,29g/t from 4 401 000 tonnes of mineralised material which is an increase of 50 500 ounces of gold.

New Dawn is a junior gold company listed on the Toronto Stock Exchange with 45 612 383 common shares outstanding that is focused on developing its gold mining operations in Zimbabwe.

New Dawn owns 100 percent of the Turk and Angelus, Old Nic and the Camperdown Mines. In addition, through its Falcon Gold Zimbabwe Limited ("Falgold") subsidiary, New Dawn currently 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 the Venice Mine, all of these mines are currently in production and are divided into three major gold camps.

New Dawn owns approximately 85 percent of the shares of its Falgold subsidiary, with the remaining approximately 15 percent of the shares being owned by other shareholders and traded on the Zimbabwe Stock Exchange.

Meanwhile, the company says it is still in the process of acquiring the shares of Falgold that it does not already own, in accordance with the pending Falgold Scheme of Arrangement.

The acquisition of the Falgold minority shares by New Dawn is intended to facilitate implementation of New Dawn's proposed Plan of Indigenisation at the Zimbabwe subsidiary level.

"The Falgold Scheme of Arrangement is conditional upon, and will not become effective until, the satisfaction of the remaining conditions precedent, which consist primarily of the receipt of necessary regulatory approvals in Zimbabwe. The satisfaction of the conditions precedent could take up to several months," said the New Dawn statement.

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