HomeBusiness DigestCentral African Gold rakes in US$5m in sales

Central African Gold rakes in US$5m in sales

REVIVED Central African Gold (CAG) realised more than US$5 million in gold sales during the quarter to as the takeover of the company by New Dawn Mining started to yield positive results.

CAG, which is 89% controlled by New Dawn, increased gold production during the third quarter by 27,7% to 3 243 ounces.
Gold sales at the mining company increased since it was taken over by New Dawn in June to US$5,059 million, a 42.5% increase on the figure realised during the second quarter.
Total sales during the quarter were buoyed by firm international prices of gold , which averaged US$1 239  per ounce compared to US$1 194 obtaining in the second quarter.
“The increase in gold production was a result of greater tonnage mined and processed at the Turk and Angelus Mines, as well as the limited production from the Central African Gold properties, resulting in a 27,7% increase in gold production (24.1% increase on an attributable basis),” said New Dawn in a statement on Tuesday. “The Dalny and Old Nic Mines, having resumed operation in early August 2010 on a limited basis, collectively contributed an initially modest 571 ounces (454 ounces attributable) to New Dawn’s total production output for the quarter ended September 30, 2010.”
The attributed figure represents what New Dawn is entitled to given its 89% stake in the mining company, with the remainder going to minority shareholders.
New Dawn said they expected Dalny and Old Nic Mines to contribute an increasing proportion of the consolidated gold production in future.
At New Dawn’s 100% owned entities –– Turk and Angelus Mines –– 3 570 ounces of gold were produced during the quarter ended September 30, marking a 10.1% increase during the three months to end of June.
“During the quarter ended September 30, 2010, gold production output levels increased at the Turk and Angelus Mines, but were still adversely affected by unscheduled power cuts,” added New Dawn. “As previously announced, the power situation at Turk and Angelus Mines is being stabilized with the installation of diesel generators expected to be completed and operational by December 31, 2010.”
New Dawn said as a result of its CAG on June 16, 2010, the company has consolidated for accounting purposes. However, CAG’s properties were conducting limited operations or were on care and maintenance through June 30, 2010, and therefore did not have any gold production or sales for the period from June 16, 2010 through June 30, 2010.
Ian Saunders, president and CEO of New Dawn said: “Inclusive of reserves, New Dawn’s attributable gold mineral resource base has increased by 92% with the filing of the new Central African Gold NI 43-101 (a mineral resource classification scheme used for the public disclosure of information relating to mineral properties in Canada) –– compliant mineral reserve and resource estimate, as announced on October 19, 2010. The quarterly production and sales results announced today are simply the first indication of growth that New Dawn will be embarking upon in the coming quarters and years ahead.”
Saunders said Turk and Angelus Mines had a combined target of 50 000 to 60 000 ounces of gold per year within the next 18 to 24 months. This would be stepped up to a target of 100 000 ounces within the next four to five years.

 

Leonard Makombe

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