SMALL-CAP resources group New Dawn Mining says gold production for February jumped six percent at its Matebeleland North-based Turk Mine earning the company US$1.2 million.

The Canada-based company whose operations are mainly focused on Zimbabwe says output at Turk for February increased 6.3 percent to 1234 ounces (38.4 kg’s) from the 1160 ounces (36.1 kg’s) produced in January.

“The increase in gold production during February 2010, as compared to January 2010, was primarily attributable to increased tonnages treated at New Dawn's 580 tonne-per-day processing facility.

“The increase in tonnage treated reflects the impact of New Dawn's expanded mining and development program,” the company said in a statement.

Although average gold prices were slightly lower in February revenues for the month rose to US$1.23 million owing to the increased output compared to the US$903 000 realised in January.

The company says it is on course to double annual production at Turk over the next 12 to 18 months.

“With our recently expanded mining and development program, we are now producing gold at the rate of approximately 1.5 kg's per day as gold production continues to ramp up at the Turk/Angelus mine complex.

"We are continuing with our aggressive capital reinvestment campaign, which includes the purchase of new processing equipment that is being funded from the positive operating cash flow that we are generating from our current and expanding gold mining operations in Zimbabwe.

“We are focused on meeting our next production target of 22,000 to 23,000 ounces of gold on an annualized basis within the next 12 to 18 months," group President and Chief Executive Ian Saunders said.