adminParent company Toronto Stock Exchange-listed New Dawn Mining Corporation said the work stoppage is both “illegal and unprotected” and could have some repercussions on the mine’s output in the current quarter.
“The company is currently dealing with this work stoppage in accordance with Zimbabwe labour legislation, as well as its own internal policies.
“Management is attempting to resolve this matter in an orderly and efficient manner, and will report updates to shareholders as necessary.
“The work stoppage to date has had limited impact on production, but, if not resolved in the next few days, it will begin to have a more significant impact on production,” said the company in a statement.
New Dawn currently has five mines in operational in the country, however the strike appears to be an isolated situation. No similar incidents have been reported at the company’s other four mines.
To the extent it should have limited impact on the company’s production targets.
The Zimbabwe-focused gold producer is currently expanding its production with a targeted monthly run rate of 60 000 ounces of annualised gold production by the end of this year.
New Dawn has indicated that it is targeting further increasing production at its existing properties to a run rate of 100 000 ounces of annualised gold production by December 2014.
The company owns Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine.
It also has an approximately 85 percent equity interest in the Dalny Mine, the Golden Quarry Mine and the Venice Mine, and a large portfolio of prospective exploration acreage in Zimbabwe.
These six mines, five of which are now operational, are divided into three significant gold camps.
New Dawn believes that Zimbabwe is “geologically rich, highly prospective, and significantly under explored”, and has indicated plans to become a mid-tier gold mining firm, active in both gold production and gold exploration.
Online Reporter