New Dawn revenues up 86 percent

was largely driven by a significantly higher gold prices during the period under review.
The company has said its operating cash flows are being re-invested in Zimbabwe to fund 2012 expansion and development plans.
The Toronto Stock Exchange-listed New Dawn owns 100 percent of the Turk, Angelus the Old Nic Mine and the Camperdown Mine.
In addition, it also owns approximately 85 percent of the Dalny Mine, the Golden Quarry Mine, and the Venice Mine (currently not in operation), and a portfolio of prospective exploration acreage in the country.
During the quarter just ended, the average sales price per ounce of gold sold was US$1 685, compared to            US$1 389 for the quarter ended March 2011 quarter.
New Dawn’s gold sales for the latest quarter, however, declined 3,8 percent compared to the December quarter figure of US$15 440 766.
The company attributed the decrease in gold sales to production issues related to the Turk and Angelus Mine.
“Gold production at the company’s Turk and Angelus Mine for the quarter ended March 31 was 2 763 ounces.
“This production decrease was the result of the impact of a short-term work stoppage in January 2012, and certain geological, structural and technical mining issues at the Turk and Angelus Mine that are now largely identified and understood,” said the company in a statement.
New Dawn has, however, said it is in the process of implementing a new mine plan that addresses the aforementioned technical mining issues. It therefore does not expect a significant improvement in production or operating costs at the Turk and Angelus Mine until this plan has been fully implemented over the next several quarters.
Other than at the Turk and Angelus Mine, the company’s mining operations had a combined increase in gold production of approximately 14,5 percent during the latest quarter compared to the previous quarter.
Total gold production for the quarter under review of  8 736 ounces was a 4 percent decrease from the December quarter figure of 9 095 ounces. On a year-on-year basis, however, the current output was 40,3 percent higher than the comparable period last year.
New Dawn says a drilling programme at its Camperdown Mine gold project, part of the company’s Gweru Gold Camp located in the Shurugwi District, is underway and should be completed in six months’ time, with analysis of the drilling results set for completion by the end of this year.
Based on the results of this drilling programme, the company said it may consider additional exploratory work to further define and develop Camperdown.
New Dawn also says it is still holding discussions with the Government over its indigenisation compliance plan.
Last month, the the National Indigenisation and Economic Empowerment Board wrote to New Dawn proposing for the company’s consideration a modification in the allocation of equity and the form of consideration to be paid by the respective recipients.
In a letter dated April 27, the company responded, requesting clarification for the basis of NIEEB’s proposal and also noting a number of significant issues that needed to be addressed and awaits further communication from the NIEEB.
New Dawn has since said it is in the process of engaging with various indigenous investor groups and potential financing sources with respect to an investment in the company as part of its compliance plan.