New Dawn Mining resumes gold production at Golden Quarry

New Dawn Mining Corp. (TSE:ND) said Thursday that it has resumed gold production at the Golden Quarry Mine in Zimbabwe, pushing the number of the company's producing mines in the region to four.
The Zimbabwe-focused mining company said that it expects to end the year with an annualized production of between 38,000 to 40,000 ounces of gold, with a target of 100,000 ounces by 2015.
On Monday, New Dawn completed the 100% acquisition of Central African Gold, having first acquired an 88% stake in the company last June, furthering its goal of becoming a mid-tier gold producer.
This is because Central African holds a portfolio of assets in Zimbabwe, including the Golden Quarry Mine, the Dalny Mine, and three other principal past-producing mines. New Dawn now owns an 85% interest in Golden Quarry.
"New Dawn has essentially completed its evaluation of the Central African Gold assets and their integration into New Dawn's consolidated operating structure, and in the process, has been able to lay the groundwork to substantially increase sustainable gold production in future periods," said president and CEO Ian R. Saunders.
"The company's recently reported production figures, revenue and net income for the quarter ended March 31, 2011 are an indication of the magnitude of the opportunity which is just beginning to be realized under the umbrella of New Dawn."
Indeed, during its second quarter, the company reported a 93% increase in consolidated gold sales to US$7.98 million, and 83% growth  in consolidated gold production to 6,226 ounces of gold. It also swung to a profit of US$0.70 million, or $0.02 per share, compared to a net loss of $0.46 million, or $0.02 per share, in the three months ending March 31, 2010.
The Golden Quarry Mine, located 180 kilometres northeast of Bulawayo, Zimbabwe, consists of an underground operation with a milling circuit and beneficiation plant.
After several years on care and maintenance, the mine is now producing gold less than one year after New Dawn's acquisition of the property.
The company said that the site is expected to add significant gold ounces to its total annual output, while also providing exploration potential, both underground and at surface.
Golden Quarry is on the Gweru-Shuruwi Greenstone Belt, which has produced 6.5% of the country's total gold production through 1984. According to New Dawn, there is evidence of extensions of mineralization both along strike and down dip at the mine, as well as possible additional vein systems to the north of the property.
Aside from Golden Quarry, the company will be conducting exploration on five other high priority targets during the next two years, all of which show potential for large tonnage and medium grade discoveries, it added.