Resource World Magazine

MIN I NG New Dawn Mining leads the way in Zimbabwe by Mike Kachanovsky When New Dawn Mining Corp. [ND-TSX] successfully completed its acquisition of Central African Gold in 2010, the objective for this emerging gold producer was to accelerate its growth. The deal secured ownership to five mine projects within the core operating area of Zimbabwe, featuring established gold resources and underground development along with surface infrastructure and processing capacity. Several of these new mine projects were subsequently refurbished and put back into production, providing a rapid return on the investment through the boost in gold production. However, longer term benefits of this deal are represented through the enhanced potential for a large discovery. The mining projects controlled by New Dawn are located within established greenstone belts where a history of successful gold mining has been documented. Limited modern exploration has been completed at these projects and therein lays the opportunity. New Dawn has already demonstrated its capacity to deliver new gold resources at the end of the drill bit. The company has a track record of reinvesting cash flow from operations towards exploration that has enabled it to report a mineral inventory at its flagship TurkAngelus Mine of almost 1 million ounces of gold. This success rate serves as a testament both to the caliber of its exploration team and also to the highly prospective geology of the region. The company has now shifted its focus to replicating that success at the other mine assets it controls. In October, the company reported record annual gold production of 37,623 ounces; short term growth objectives are being achieved. In fact, New Dawn has been able to report a steady increase in its gold output almost from the day the company resumed operations and this trend of rising production and increasing cash flow has generated the funding for the longer term expansion goals. Underground drilling is now underway at the Camperdown Project. This past producing mine had ceased operations in 1992; however, in addition to a remnant gold resource there is the attractive potential for new discovery zones to be defined at the project. A systematic exploration effort is currently underway to test for down-dip extensions to the existing resource zones, and outline new target areas that have the potential to expand the gold resources of the project. The key to the success at Camperdown is based on the geometry of the gold deposit area. Gold showings have been encountered very close to surface and extend well beyond the historic workings of the old mine. Considering that the metal has risen in price by several hundred percent since the mine was in operation, New Dawn management is convinced that a bulk tonnage deposit of lower grade gold may be defined that could support a large, open pit mine with very positive economics. If they are correct, then this new development opportunity could secure the growth that would establish the company among the ranks of the mid-tier gold producers in the next few years. Results from Phase I exploration at Camperdown are expected by year end. Meanwhile, New Dawn remains active at its other mine operations. Development continues at the Turk Project, with upgrades to its processing plant contributing to higher net gold output during the year. Production targets are also rising for its Dalny and Golden Quarry mines. The company has maintained a solid balance sheet with more than $4 million in working capital and no long term debt. As production increases, in tandem with rising gold prices, this has generated higher cash flow that is being deployed to fund the next phase of growth. New Dawn expects to achieve its target of 50,000 ounces of gold production by year end. However, the company has set the bar even higher with an ambitious objective to reach the 100,000-ounce production plateau as early as 2014. The rapid growth rate for the company is just one part of this success story. Zimbabwe has been through an extremely challenging period of economic duress that culminated in a hyperinflationary collapse with the destruction of its currency. The recovery process is underway for the domestic economy and the mining sector has been one of the bright spots. As New Dawn restored operations in each of its core mining districts, this has provided high paying jobs and new investment opportunities. Under the leadership of Ian Saunders, President and CEO, the company currently employs over 2,800 people and has been able to expand its workforce every year since production resumed in 2007. n Historic workings from the open pit at the Camperdown Project, Zimbabwe. Photo courtesy New Dawn Mining Corp. 60 www.resourceworld.com DECEMBER 2012/JANUARY 2013

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