New Dawn Raises Production of Zimbabwe Mine

22 November 2009 (Last Updated November 22nd, 2009 18:30)

New Dawn Mining has raised processing capacity at its Zimbabwe-based Turk Mine by 45% to 580t a day compared to 400t. The company says it can increase output following the completion of its third ball mill at the mine, financed by operating cash flow from the mine. The capacit

New Dawn Mining has raised processing capacity at its Zimbabwe-based Turk Mine by 45% to 580t a day compared to 400t.

The company says it can increase output following the completion of its third ball mill at the mine, financed by operating cash flow from the mine.

The capacity increase at the mine is the initial part of a two-phase expansion programme that aims to raise the mine's annual gold production approximately to 35,000-50,000oz in four years, while simultaneously lowering cash operating costs.

New Dawn president and CEO Ian Saunders said the company implemented a two-phase plant expansion programme at the Turk Mine to be able to reach maximum sustainable output.

"I am pleased to report phase one is now complete, as a result of which we now expect to see a steady increase in production with a steady decrease in cash costs per ounce of gold produced," Saunders said.

"Increasing gold production is one of three growth strategies that we are pursuing in Zimbabwe.

"We are also continuing exploration activities on our former gold producing properties in Zimbabwe, as well as continuing to evaluate potential value-accretive acquisitions in Zimbabwe."

Turk Mine's installed production capacity is now 22,000 to 23,000oz of gold per year.