Central African Gold Share Discussion Threads

[tomboyb] 20/10/2010 08:10

Back into gold production.

[andrbea] 20/10/2010 07:55

Central African Gold Plc

NI 43-101 Compliant Gold Reserve and Resource Estimates

for Zimbabwe Gold Mining Properties



Central African Gold Plc ('CAG' or the 'Company'), the AIM quoted gold mining and exploration company, announces that its major shareholder, New Dawn Mining Corp. ('NDM'), has completed and released to the market a technical report compliant with National Instrument 43-101 ('the NI 43-101 Report'), being the Canadian national instrument for the Standards of Disclosure for Mineral Projects. The CAG technical report has been filed on SEDAR (www.sedar.com), under New Dawn Mining Corp., and is available on CAG's website.



The NI 43-101 Report includes gold reserve and resource estimates for CAG's Zimbabwe gold mining properties held through its two subsidiaries, Falcon Gold Zimbabwe Limited ('Falgold') (84.7 per cent. owned) and Olympus Gold Mines Limited ('Olympus') (100 per cent. owned).



Summary of CAG's Total Gold Reserves and Resources in Zimbabwe, as set out in the NI 43-101 Report:



CAG's attributable interest in Falgold and Olympus consists of:



· Gold Reserves of 59,600 ounces, grading 3.50 g/t, contained in 523,300 tonnes of mineralised material.



· Gold Resources (inclusive of reserves) of 830,200 ounces, grading 1.50 g/t, contained in 16,820,700 tonnes of mineralised material.



· Inferred Gold Resources of 218,300 ounces, grading 4.60 g/t, contained in 1,482,500 tonnes of mineralised material.



The NI 43-101 Report that includes the above gold reserve and resource estimates for the Company's Zimbabwe gold properties was prepared by Michael Othitis of Medusa Geo-Consulting LLC, who is an Independent Qualified Person as defined by NI 43-101. The contents of this news release were supervised and reviewed by Ian R. Saunders, B.Sc., who is an Executive Director of CAG and President, Chief Executive Officer, and a director of NDM, and is also a Qualified Person within the meaning of NI 43-101.

[thecynical1] 19/10/2010 11:34

22....Mugabe has go at some stage.......!!!

[22hoper] 19/10/2010 09:52

andrbea,looking at the company, but Zimbabwee looks a bit of a dangerous place t invest.

[andrbea] 19/10/2010 09:30

every buy pushes the offer price up
promising movement

just need the herd (in the sense of many buyers....) to arrive...

:-)

[andrbea] 19/10/2010 09:16

some buys this morning (one of £2750); nice tight spread

[andrbea] 19/10/2010 09:09

They (New Dawn) have done well since listing in Toronto
so their bigger mkt cap there would make them an interesting addition to AIM IMO.
There are quite a few dual listed miners/oilers on AIM and Toronto.

good recent article (mentions Central African Gold = CAG here):

Harare, Oct 11, 2010

New Dawn Mining Corp-oration's president and chief executive officer, Ian Saunders, has emerged as an executive chairperson of Falcon Gold Limited (Falgold), as the new shareholder accelerates turnaround efforts at the beleaguered gold miner.
The move is certainly going to inspire confidence on the Zimbabwe Stock Exchange (ZSE)-listed Fal-gold, whose operations had suffered from a combination of poor capitalisation and an unviable gold selling regime that ended with dollarisation last year.
To highlight that he meant business at the Zimbabwean mining group, 85 percent owned by AIM-listed Central African Gold Plc, which was taken over by Toronto-listed New Dawn in June, Saunders has brought the financial reporting regime for the mining firm up to date.
For too long, Falgold's financial results have almost always come out long after the prescribed periods.
For example, overdue financial statements for the year to December 31, 2009, which should have been released by the end of March, were only released at the end of August.
But last week, Falgold released results for the half-year to June 2010 before the close of the June reporting season.
In a commentary accompanying the results, Saunders said his board was "committed to building Falgold, in conjunction with New Dawn, into a leading gold producer within Zimbabwe".
New Dawn already held gold mining assets in Zimbabwe prior to its acquisition of CAG, which also wholly owns an unlisted gold asset, Olympus Gold Mines.
The Falcon and Olympus mines were shut down by CAG in 2008 due to a gold pricing regime that made gold mining unviable in Zimbabwe, despite a rise in international gold prices.
The mines were earmarked to produce more than 100 000 ounces (oz) within five years with an injection of cash of some US$30 million into the five opencast and underground mines and four metallurgical plants.
Some of Falcon's and Olympus assets, which had been under care and maintenance, have resumed operations after a US$2 million loan to CAG by New Dawn for the revival of the mining operations.
Saunders said US$1,25 million of the loan facility, payable on demand, had been utilised.
The mines that have resumed gold production are Old Nic and Dalny mines.
Old Nic mine, which is part of Olympus, currently employs 197 people, and since production resumed in early August 2010, it has produced more than 100 oz of gold.
Dalny mine, which is part of Falcon Gold, employs 232 people and since production resumed in early August 2010, it has produced nearly 150 oz.
"With the in-country operating skills that New Dawn has, coupled (with) its access to capital, and in conjunction with a new and appropriate op-erating strategy for the company's asset base in a recovering Zimbabwe, the company's way forward is becoming clearer," said Saunders.

[thecynical1] 18/10/2010 16:49

ref 944 - as you say...probably a toss of the dice....what I am wondering is why they would de-list when the listing itself in London is worth money...it costs a not insignificant amount to organise a listing.....guess we have to wait and see how this pans out.......

[andrbea] 18/10/2010 10:55

ref post 942

it's a toss of a coin IMO

either they delist in London... or do a rto of ND into CAN's London listing, seeing as ND owns a controlling interest in CAN. In a nutsell, what they say.. goes!

Interesting that a Canadian listed company like ND bothers to profile itself in Europe (or is this part of swooing analysts in London?)

New Dawn Mining Corp. Presents at International Precious Metals & commodities Show, Nov-05-2010 . Venue: Event Arena, Olympic Park, Munich, Germany.

[pauladrew] 16/10/2010 15:07

Just researching some gold stocks, and can't believe NRRP has been overlooked. From their website- project at Ubib:

"North River Resources owns 100% of the Ubib Copper/Gold Project which is located 15km south-west of Namibia's longest producing gold mine, the four million ounce Navachab Gold Mine. "

Looks an interesting company and share price at all time low.

DYOR

[thecynical1] 14/10/2010 11:32

hi!

I am wondering why they would go to the bother of taking a major holding in the company just to de-list....? The listing itself has a value for anyone who wants to list a company on the exchange.....I do not understand the logic of why they would de-list? Am I missing something here?

[andrbea] 13/10/2010 19:28

.. and again

no one interested it would seem....

[andrbea] 12/10/2010 13:20

up again today

[andrbea] 11/10/2010 09:30

up 7% on sells
weird share this ;-)

[andrbea] 08/10/2010 09:56

maybe too risky for the moment (reading this)
23.8.10

as delisting in London is one of the scenarios:

Key developments for NEW DAWN MINING CORP (ND)
New Dawn Reportedly Mulls Zimbabwean Operations With Central African
08/23/2010
New Dawn Mining Corp is known to be looking at merging its Zimbabwean operations with Central African Gold Plc. New Dawn had recently acquired Central African. Sources stated that it is likely that the merger would take place at Zimbabwean asset level, resulting in an offer to CAG minorities and a de-listing of the company. An investor note from New Dawn stated: "New Dawn is currently developing a revised and updated strategic business plan in light of its acquisition of a controlling interest in CAG, with a view towards reaching consolidated annualized gold production of 50000 to 60000 ounces within the next 18 to 24 months, increasing to 100000 ounces within four to five years, and then ultimately to 200000 to 250000 ounces." The note added: "Additionally, the company is reviewing and assessing CAG's extensive portfolio of exploration properties in Zimbabwe for future investment and development. New Dawn's plans with respect to CAG's assets and operations will be developed and implemented taking into account New Dawn's ongoing discussions with and submissions to the Zimbabwe authorities." Central African told its shareholders: "The board further announces that it is undertaking a comprehensive strategic review of all of the company's operations. A further announcement will be made following completion of the strategic review." It is known that New Dawn's Zimbabwe subsidiary is currently holding talks with the Competition and Tariffs Commission (CTC), which has asked it to submit various documents related to the CAG transaction.

[andrbea] 08/10/2010 09:46

As ND has the 89% controlling interest in CAN one wonders why CAN stays listed on LSE.
Why not let ND take over the listing in an RTO?

It would help transparency if nothing else, as CAN no longer exists, to all intents and purposes.

nia dyor

[andrbea] 08/10/2010 09:43

another investment by New Dawn (Falgold)
30.9.10

Problems for Falgold date back to 2008 when Fidelity Printers failed to honour its obligation for the gold delivered to them. This forced them to divert funds initially set aside for capital expenditure into working capital. The firm hopes the new major shareholder, New Dawn, which acquired the 88,7% shareholding of Central African Gold in Falgold mid June this year will revive the operations of the company. New Dawn, which is a Toronto listed mining company, is said to have the capabilities to access new capital and is expected to bring mining expertise into the company.




Background:

June 17

CAG, through its subsidiary, has interests in two separate Zimbabwe-operating gold mining companies. It owns an 84.7% interest in a Zimbabwe Stock Exchange listed Falcon Gold Zimbabwe (ZIM:FALGOLD) (Falgold), and the entire share capital of a private Zimbabwe company Olympus Gold Mines Ltd.

Through these holdings, CAG has interests in several gold mining properties in Zimbabwe, the most significant properties being: the The Dalny Mine (Falgold); The Golden Quarry Mine (Falgold); The Venice Mine (Falgold); The Camperdown Mine (Olympus); and the The Old Nic Mine (Olympus).

New Dawn Mining Corp (TSX:ND) has acquired an 89% controlling stake in Central African Gold (LON:CAN) (CAG), through deals with the company's three largest shareholders.

[andrbea] 07/10/2010 16:09

bit more volume now, eg a trade of 1m (vol)

up 2%

[andrbea] 05/10/2010 13:40

true, it's the riskiest of them all

There are doubts about it being a going concern (see article)

much depends on how New Dawn see it & go from here


New Dawn Loans U.S. $2 Million to Central African Gold

3 September 2010


NEW Dawn Mining has extended a US$2 million loan facility to Central African Gold (CAG), a company it acquired in June, as interim financing to meet the firm's cash requirements.

CAG has already drawn US$750 000 from the financing expected to rekindle the mining company's operations, New Dawn said on Tuesday.

"New Dawn is proceeding with a comprehensive review of all aspects of CAG's assets and operations, including mineral reserves and resources, operations, management, control structures and systems, listing status, capital structure and future capital requirements," said Graham Clow, chief financial officer and corporate secretary at New Dawn.

New Dawn's acquisition of CAG caused a stir with local authorities saying it was against the country's indigenisation regulations. The issue has also been referred to the Competition and Tariff Commission (CTC) for review.

CTC director Alexander Kububa confirmed to businessdigest that they were looking into the issue.

"The proposed acquisition of Central African Gold by New Dawn Mining Corporation was notified to the commission (CTC) for the examination of the transaction's competitive effects last month," said Kububa. "The examination is currently at an advanced stakeholder consultations stage."

New Dawn said they were evaluating CAG's short-term and long-term working capital requirements to fund the development and operations of the company's gold mining assets.

This funding would be addressed through a combination of internally generated funds and new debt or equity.

"New Dawn is currently developing a revised and updated strategic business plan in light of its acquisition of a controlling interest in CAG, with a view towards reaching annualised gold production of 50 000 to 60 000 ounces within the next 18 to 24 months," added Clow. "Additionally, the company is reviewing and assessing CAG's extensive portfolio of exploration properties in Zimbabwe for future investment and development."

A senior auditor with KPMG, Lynton Richmond, who prepared an independent report said the ability of CAG to continue as a going concern was dependent on their ability to achieve significant cost savings in the short term and "effecting suitable financial and other arrangements to enable the development of the Zimbabwean assets, on which the group's and company's viability is dependant".

"These conditions, along with other matters, indicate the existence of a material uncertainty which may cast significant doubt on the group's and the company's ability to continue as a going concern," said Richmond.

New Dawn made an investment resulting in the acquisition of debt and a controlling shareholding interest in CAG in mid June resulting in the company owning around 87% of the gold mining company which has operations in Zimbabwe.

CAG, directly and through its wholly-owned subsidiary, Falcon Mines Holdings owns a 100% interest in Olympus Gold Mines Limited, a private Zimbabwe company, and an approximate 84.7% interest in Falcon Gold Zimbabwe Limited, a company currently listed and trading on the Zimbabwe Stock Exchange.

The properties owned by CAG's subsidiaries are in limited operations or are under care and maintenance after the economic problems in 2008 forced many mining companies to close shop.

Gold miners were required to sell their produce to Fidelity Printers which was not remitting proceeds, but the marketing of the metal has since been liberalised

[gerryjames] 05/10/2010 13:04

Are you saying I should invest in a foreign white colonist Goldminer who didn't consult with the Zimbabwean Government?

I can think of safer Gold Plays.

[bonsoir7] 05/10/2010 10:13

you really haven't got a clue have you

fine but don't try to con others

[andrbea] 05/10/2010 10:12

yes, but..

look to the next 6 months..
it's all about where do we go from here:

ND (New Dawn) have doubled their mkt cap in Toronto is just the last month.

They have the financial muscle & existing infrastructure to get CAN's 2 mines producing at an industrial rate, generating revenue. and explore the properties, looking to expand the resource or drill deeper.

Compared to the mothballed, fully owned mine of early 2010, I reckon the share price (albeit diluted) can do better with a city-liked operator (ND), with the ambition to get these mines back up to full production and more.

All IMO ...