“With New Dawn’s June 2010 investment in CAG (Central African Gold) and the new Mineral Resource estimates for the Cag properties announced on Wednesday, the CAG acquisition has demonstrably and significantly increased New Dawn’s gold resource base,” said Saunders.
“New Dawn now has both gold resources and the mining capability to support a consolidated annualised production of 50 000-60 000 ounces of gold within the next 18-24 months, and we look to increase this to 100 000 ounces of annualised gold production within four to five years.”
Meanwhile, CAG, a gold mining company with a portfolio of production, development and exploration assets owned by New dawn says gold reserves at its Falcon Gold Zimbabwe Ltd and Olympus Gold Mines Ltd amount to 59 600 ounces and 830 200 ounces, respectively.
According to a report released on Wednesday, CAG’s attributable interest in Falgold and Olympus consists of gold reserves of 59 600 ounces, grading 3,50 grammes/tonnes, contained in 523 300 tonnes of mineralised material.
“Gold Resources (inclusive of reserves) of 830 200 ounces, grading 1,50 g/t, contained in 16 820 700 tonnes of mineralised material. Inferred Gold Resources of 218 300 ounces, grading 4,60 g/t, contained in 1 482 500 tonnes of mineralised material,” CAG said.
The report was prepared by Michael Othitis of Medusa Geo-Consulting LLC CAG, directly and through its wholly-owned subsidiary, Falcon Mines Holdings, owns a 100% interest in Olympus Gold Mines Ltd and an approximate 84,7% interest in Falcon Gold Zimbabwe Ltd, a company currently listed and trading on the Zimbabwe Stock Exchange.
CAG has five main gold mines, the Dalny, Old Nic, Golden Quarry, Venice and Camperdown mines, which are located in the highly prospective Kadoma, Shurugwi and Bulawayo.
Zimbabwe produced 4,03 tonnes of gold in the first half of the year and is on course to double last year’s output despite regular disruptions of electricity supplies.Gold production plunged to a record low of 3 tonnes in 2008, as mines choked from hyperinflation as well as acute foreign currency and electricity shortages. Last year saw a marginal improvement to 4,9 tonnes.