TORONTO, Mar 27, 2009 (Canada NewsWire via COMTEX) ----New Dawn Mining Corp. (TSX: ND: undefined, undefined, undefined%) is providing an update to report further positive economic policy changes in Zimbabwe as outlined in the Short Term Emergency Recovery Program ("STERP") recently presented by the new Minister of Finance. The new STERP is expected to have a direct positive impact on the Company's Turk Mine, as well as positive effects for the Zimbabwe economy as a whole.
Specific to New Dawn and the Zimbabwe mining industry, the new STERP eliminates any retention on revenue derived from export sales. In the January 2009 Monetary Policy Statement, retention was reduced to 7.5% from 15%. Now, under the new program, it has been eliminated completely. The result is to allow gold producers to continue to market their gold directly and to now retain 100% of the proceeds from such gold sales in foreign currency. At the same time, the STERP proposes to review taxation and royalty structures to bring them in line with international standards.
The STERP also confirms that the new liberalized exchange controls will remain, which will result in New Dawn receiving payment for its gold sales in US dollars, thus eliminating any currency risk.
Additionally, the STERP maintains the previous threshold that any business transaction under US$5M, including the sale of gold, does not need Reserve Bank of Zimbabwe approval. For New Dawn, this permits flexibility for future gold sales and further demonstrates the extent of the positive changes that are now occurring with respect to Zimbabwe's economic policies.
The STERP also includes expediting amendments to the Mines and Minerals Act, particularly in respect to the framework for mining rights, with a view toward reviewing the mining title system, discouraging hoarding of claims which are not being worked, and reforming the Mining Affairs Board.
"Positive changes in economic policy in Zimbabwe are occurring. The new STERP provides us even further confidence and evidence of the positive steps forward being taken by the government towards ensuring economic stability," said Company President and CEO Ian R. Saunders. "For New Dawn, the STERP provides us greater visibility as we move closer to resuming full-scale gold mining operations and begin to generate free cash flow in US dollars, from our export sales of gold mined at our Zimbabwe operations."
New Dawn anticipates moving into full-scale mining operations at the Turk Mine in Zimbabwe during the second calendar quarter of 2009, and expects to report to shareholders in this regard in the near future.
About New Dawn ...
New Dawn Mining Corp. is a junior gold company concentrating its efforts in southern Africa. The Company is well established there with three mines, two production facilities, a skilled and experienced workforce and significant resources.
Two recent NI 43-101 reports documented an aggregate of 969,546 ounces of gold reserves and resources grading between 2.9-6.1 g/t, with additional inferred mineral resources of 355,873 ounces of gold grading between 3.90 - 5.91 g/t. Reserves and Resources are based upon a 2.45 g/t cut-off and US$875/oz gold price at the Turk and Angelus Mines and a 2.0 g/t cut-off at US$750/oz gold price at the Company's Blue Dot Property. For further information on the Company's gold reserves and resources, visit the Company's website at www.newdawnmining.com or filed on SEDAR at www.sedar.com .
New Dawn wholly owns the Turk and Angelus Mines in the upper southwest area of Zimbabwe, with a production facility currently capable of processing up to 400 tonnes per day or 12,000 tonnes per month; and owns a 74% interest in the Blue Dot Property in South Africa, with a production facility there rated at 180 tonnes per day or 5,500 tonnes per month. The Company maintains a highly experienced work force of over 800 people.
The Company has additional assets that form a portfolio of exploration properties, and include the Consolidated Bubi Gold Fields, consolidated Midlands Gold Fields and consolidated Shurugwi Gold Fields properties, all of which are located in Zimbabwe.
The TSX has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
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.
Investors are invited to visit the New Dawn Mining Corp. IR Hub at AGORACOM: http://www.agoracom.com/ir/NewDawn where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to: ND@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
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 May 29, 2008 Prospectus. 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 Management Discussion and Analysis 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.
SOURCE: New Dawn Mining Corp.