Diesel powered generators needed to support gold production at Zimbabwean mine

first_imgNew Dawn Mining has completed the technical studies and operational modelling for the installation of diesel powered generators that will provide the electrical capacity sufficient to ensure New Dawn’s next production target of 22,000 to 23,000 oz/y of gold can be realised and maintained. New Dawn has issued commercial and technical enquires to suitable vendors to provide electrical diesel generators in order to minimise production losses from power cuts.  New Dawn has sufficient cash resources to acquire and install the system, either through purchase or lease.Power shortages have been identified as a strategic risk by management that could potentially limit production output and adversely effect operating results.  At present, Zimbabwe has insufficient internal power generating capacity to fulfill domestic requirements and there has been a significant increase in power cuts since early March 2010, which has resulted in a significant loss of operating shifts and ore processing at the Turk mine.In addition, the power utility has not been able to follow its existing load shedding schedule, which has made contingency plans implemented by management ineffective in this regard. The result has adversely affected production output and costs at the Turk mine. New Dawn views the installation of the new diesel powered generators as an effective solution to provide the electrical capacity sufficient for the company to be able to realise its next production target by mid-2011.New Dawn is a Zimbabwe-focused junior gold company currently expanding gold production at its Turk and Angelus mines, exploring for gold, and identifying and pursuing other development projects, as well as actively assessing other value accretive acquisition opportunities in Zimbabwe.  New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that has the potential to produce an estimated 35,000 to 50,000 oz/y of gold.  New Dawn owns the property outright on which these mines are located.  Currently, a production facility capable of processing up to 580 t/d or 17,500 t/month is in place and operating.  Additionally, it has a portfolio of exploration properties in Zimbabwe that includes the Consolidated Bubi Gold Fields and Consolidated Shurugwi Gold Fields properties.last_img

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