HomeNewsCAG reopens Old Nic, Dalny mines

CAG reopens Old Nic, Dalny mines

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Central African Gold Plc (CAG), an AIM-listed gold mining and exploration company with vast gold interests in Zimbabwe, says it has resumed operations at Old Nic and Dalny mines, after receiving a loan boost from its new parent, New Dawn Mining Corp.

The mines, held under CAG’s Olympus Gold Mines and Falcon Gold Zimbabwe Limited, have been under care and maintenance since 2008.

The company last month signed a $2 million loan facility agreement with New Dawn — an 89% controlling shareholder — to support its portfolio of gold mining operations falling under Falcon Gold Zimbabwe Limited and to Olympus Gold Mines Limited.

In its latest operational update, CAG said production at the two mines resumed early last month and have already produced a combined 234 ounces of gold.

Old Nic Mine, which is part of Olympus Gold Mines, a wholly owned subsidiary of the company, has produced 110 ounces of gold (110 ounces attributable to CAG).

The Dalny Mine complex, which is part of Falcon Gold Zimbabwe Limited, an 84,7% controlled subsidiary of the Company, has produced 124 ounces of gold (105 ounces attributable to CAG).

It employs 232 people. “The board of CAG believes that there is the opportunity to develop a number of open-pit, medium-grade bulk mining operations within the greater Dalny shear zone,” said CEO Roy Pitchford.

“Accordingly, the Board believes that this asset is currently under-explored and offers a substantial medium to long-term development opportunity.”

Up to 2006, Dalny Mine had produced a total of 2,44 million ounces of gold. CAG is a gold mining company with a portfolio of production, development and exploration assets in Zimbabwe, where the company operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84,7 % owned) and Olympus Gold Mines Limited (100% owned).

Through these subsidiaries, CAG has four main gold mines, Dalny, Old Nic, Golden Quarry and Camperdown mines, which are located in the highly prospective Kadoma, Shurugwi and Bulawayo areas.

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