TIDMCAN
RNS Number : 2304W
Central African Gold PLC
16 November 2010
Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
16 November 2010
Central African Gold Plc ('CAG' or 'the Company')
New Dawn Q4 2010 Trading Update
Central African Gold Plc, the AIM quoted gold mining and exploration company,
notes an announcement released by its 88.68% shareholder New Dawn Mining Corp
(TSX:ND) ('New Dawn'), on 15 November 2010. The announcement, which is set out
in full below, relates to New Dawn's trading update for the quarter ended 30
September 2010.
"27.7% Quarterly Increase in Consolidated Gold Production
42.5% Quarterly Increase in Consolidated Gold Sales
Consolidated Gold Sales Reach Record High, Exceeding
US$5 Million for the Quarter Ended September 30, 2010
Toronto, Ontario, November 15, 2010 - New Dawn Mining Corp. (TSX: ND) reported
consolidated gold production of 4,141 ounces of gold produced (4,024 ounces
attributable to New Dawn, after adjusting for the minority interests' share of
gold production from the Central African Gold properties) for the quarter ended
September 30, 2010, as compared to 3,243 ounces of gold produced (3,243 ounces
attributable) for the quarter ended June 30, 2010, an increase of 27.7% (24.1%
increase on an attributable basis).
As a result of New Dawn's investment in which it acquired an 89% controlling
interest in Central African Gold Plc effective June 16, 2010, New Dawn has
consolidated for accounting purposes the operations of Central African Gold from
that date. However, Central African Gold'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. Accordingly, gold production and sales for the quarter
ended June 30, 2010 reflects only the operations of New Dawn's Turk and Angelus
Mines for such period.
Commented Ian R. Saunders, President and CEO of New Dawn, "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-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. The Central African Gold mining properties and the Company's Turk and
Angelus Mines have a combined target of 50,000 to 60,000 ounces of annualized
gold production within the next 18 to 24 months, followed by an annualized gold
production target of 100,000 ounces within the next 4 to 5 years. In addition,
we will be continuing to explore on our highly prospective ground in Zimbabwe
for additional development opportunities."
During the quarter ended September 30, 2010, consolidated gold sales totalled
US$5,059,903 (US$4,949,676, after adjusting for the minority interests' share of
gold sales from the Central African Gold properties) at an average sales price
per ounce of gold of US$1,239, as compared to consolidated gold sales for the
previous quarter ended June 30, 2010 of US$3,549,786 (US$3,549,786 attributable)
at an average sales price per ounce of gold of US$1,194. Consolidated gold
sales for the quarter ended September 30, 2010 increased 42.5% (39.4% increase
on an attributable basis), as compared to the previous quarter ended June 30,
2010, as a result of both increased production at the Turk and Angelus Mines and
production activity at the mining properties owned by Central African Gold, in
which New Dawn acquired an 89% controlling interest in June 2010.
100% of sale proceeds were received in US dollars.
At September 2010 month-end, an additional 608 ounces or 18.9 kg's of gold
awaited export documentation for sale in South Africa, and will be included in
October 2010 sales.
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). 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 Dalny and Old Nic Mines are expected to contribute an
increasing proportion of New Dawn's consolidated gold production in future
periods. Historical production at Dalny Mine up to 2006 was 2.44M ounces of
gold from 10.2M tonnes of mineralized material grading approximately 7.42 g/t.
The Dalny Mine complex includes a strike length of over 15km.
New Dawn's 100%-owned Turk and Angelus Mines produced 3,570 ounces of gold or
111 kg's during the quarter ended September 30, 2010, as compared to 3,243
ounces of gold or 100.9 kg's during the quarter ended June 30, 2010, an increase
of 10.1%.
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. 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.
The quarter ended September 30, 2010 is the fourth fiscal quarter of the
Company's fiscal year ended September 30, 2010. The Company will file its
consolidated financial statements and related materials for the fiscal year
ended September 30, 2010, and report its consolidated results of operations for
such period, by the filing deadline of December 29, 2010.
About New Dawn ...
New Dawn is a Zimbabwe-focused junior gold company currently expanding gold
production at its wholly-owned Turk and Angelus Mines and, with its June 2010
investment in which it acquired an 89% controlling interest in Central African
Gold, New Dawn is targeting consolidated annualized gold production of 50,000 to
60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces of
annualized gold production within the next 4 to 5 years.
Having recently filed a new NI 43-101-compliant mineral reserve and resource
estimate for the Central African Gold properties acquired, New Dawn's total
attributable mineral reserves, including its Turk and Angelus Mines, increased
32% to 220,000 ounces of gold grading 3.81 g/t from 1,785,000 tons of
mineralized material. The attributable mineral reserves are comprised of
attributable proven mineral reserves of 109,400 ounces of gold grading 3.69 g/t
from 874,700 tons of mineralized material and attributable probable mineral
reserves of 110,600 ounces of gold grading 3.78 g/t from 910,300 tons of
mineralized material.
Additionally, New Dawn's total attributable measured and indicated mineral
resources (inclusive of attributable mineral reserves) increased by 92% to
1,558,400 ounces of gold grading 2.37 g/t from 20,436,000 tons of mineralized
material and New Dawn's total attributable inferred mineral resources increased
by 54% to 552,600 ounces of gold grading 4.95 g/t from 3,477,000 tons of
mineralized material.
Presently, New Dawn operates 3 significant gold camps in Zimbabwe, where it owns
6 mines, 3 of which are currently producing gold and expanding production. New
Dawn is on the path to becoming a leading gold mining company in Zimbabwe,
active in both gold production and gold exploration, by employing modern mining
techniques and deploying capital in a country that is geologically rich, highly
prospective, and significantly under explored.
Additional information on New Dawn's gold reserve and resource estimates is
included at the Company's website at www.newdawnmining.com or in the Company's
filings on SEDAR at www.sedar.com.
The TSX has not reviewed and does not accept responsibility for the adequacy or
the accuracy of this release.
The contents of this news release were supervised and reviewed by Ian R.
Saunders, B.Sc., who is President, Chief Executive Officer, and a Director of
New Dawn Mining Corp., and who is a Qualified Person within the meaning of NI
43-101.
For Further Information:
Investor Relations Contact: Richard Buzbuzian +1 416.585.7890
President and Chief Executive Officer: Ian R. Saunders +1 416.585.7890
Visit us on the internet: http://www.newdawnmining.com or
Email us at: info@newdawnmining.com
Special Note Regarding Forward-Looking Statements: Certain statements included
or incorporated by reference in this news release, including information as to
the future financial or operating performance of the Company, its subsidiaries
and its projects, constitute forward-looking statements. The words "believe,"
"expect," "anticipate," "contemplate," "target," "plan," "intends," "continue,"
"budget," "estimate," "may," "schedule" and similar expressions identify
forward-looking statements. Forward-looking statements include, among other
things, statements regarding targets, estimates and assumptions in respect of
gold production and prices, operating costs, results and capital expenditures,
mineral reserves and mineral resources and anticipated grades and recovery
rates. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause the Company's
actual results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company. Such factors
include, among others, risks relating to reserve and resource estimates, gold
prices, exploration, development and operating risks, political and foreign
risk, uninsurable risks, competition, limited mining operations, production
risks, environmental regulation and liability, government regulation, currency
fluctuations, recent losses and write-downs and dependence on key employees.
See "Risk Factors" in the Company's Annual Information Form - 2009. Due to
risks and uncertainties, including the risks and uncertainties identified above,
actual events may differ materially from current expectations. Investors are
cautioned that forward-looking statements are not guarantees of future
performance and, accordingly, investors are cautioned not to put undue reliance
on forward-looking statements due to the inherent uncertainty therein.
Forward-looking statements are made as of the date of this press release and the
Company disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information, future
events or results or otherwise."
**ENDS**
For further information please visit www.centralafricangold.comor contact:
+-------------+------------------------+---------------------+
| Roy | Central African Gold | Tel: +44(0)77 9390 |
| Pitchford / | Plc | 9985 |
| Ian | | Tel: +(263) 9 |
| Saunders | | 76826/7/8 |
| | | |
+-------------+------------------------+---------------------+
| Stuart | Strand Hanson Limited | Tel: +44(0)20 7409 |
| Faulkner / | | 3494 |
| James | | |
| Spinney | | |
| | | |
+-------------+------------------------+---------------------+
| Hugo de | St Brides Media and | Tel: +44(0)20 7236 |
| Salis / | Finance Ltd | 1177 |
| Felicity | | |
| Edwards | | |
+-------------+------------------------+---------------------+
Notes to Editors
CAG
Central African Gold Plc is a gold mining company with a portfolio of
production, development and exploration assets in Zimbabwe, where the Company
operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7 per cent.
owned) and Olympus Gold Mines Limited (100 per cent. owned). Through these
subsidiaries, CAG has four main gold mines, the Dalny, Old Nic, Golden Quarry
and Camperdown mines, which arelocated in the highly prospective Kadoma,
Shurugwi and Bulawayo gold regions in Zimbabwe.
NDM
The Company's 88.68% shareholder is Toronto Stock Exchange listed New Dawn
Mining Corp. ('NDM'), a gold company with a broad portfolio of production and
exploration assets also in Zimbabwe. NDM owns and operates the Turk and
Angelus Mines in the upper southwest area of Zimbabwe, which it believes have
the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum.
It is NDM's objective to orchestrate the development of CAG's mining operations
and exploration portfolio, as well as its own, to become a mid-tier gold
producer focussed in Zimbabwe, with a consolidated annualised gold production to
between 50,000 and 60,000 ounces within the next 18 to 24 months, increasing to
100,000 ounces within the next 4 to 5 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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