Junior gold company New Dawn Mining has decided to increase its presence in Zimbabwe as it chases what it says is untapped opportunities.
The Canada-based company says it will increase exploration activity on its option claims in Zimbabwe and expand production at its Zimbabwean Turk and Angelus Mines. It will also pursue value accretive acquisitions in the country.
To raise funds for its Zimbabwe activities, the company has decided to shut down the Blue Dot Mine Development project in South Africa and place the project into provisional liquidation.
New Dawn CEO Ian Saunders said the Blue Dot closure will not impact gold sales or production yielded from the Turk Mine in Zimbabwe.
“The operating environment in South Africa deteriorated to the point where it was no longer sensible for us to continue to pursue developing an asset that ultimately did not have the size and scope to provide our shareholders with the economic reward relative to the related operating country risk,” Saunders added.
Saunders said production at its Zimbabwean mine has been growing for five consecutive months.