Global Gold Corporation continues exploring Armenian gold-silver mine

PanARMENIAN.Net - Global Gold Corporation and privately held Consolidated Resources announced that on April 27, 2011, they concluded a joint venture agreement to fund and expand production at the Toukhmanuk gold-silver open pit mine in Armenia and further exploration activities for gold and silver at both Toukhmanuk and Getik, the Global Gold Corporation said in a press release.

As part of the agreement, Consolidated Resources is providing $5 million in funding over twelve months to support the development of the Properties.

Global Gold, headquartered in the U.S., has been active primarily in gold and silver mining in Armenia since 1995 and has maintained other mining interests in Chile and Canada.

Consolidated Resources, headquartered in Australia, is a worldwide resources company that owns strategic or controlling stakes in publicly listed and privately held resources companies having properties in Mozambique, Zambia, South Africa, and Australia.

The Toukhmanuk mine is located in north central Armenia, has an Armenian government approved reserve of approximately 2.27 million ounces of gold and 6.9 million ounces of silver in C1, C2, and P1 categories, which according to the certifying agency, correspond to international standards of measured, indicated, and inferred categories. The mine is currently producing gold and silver and the plant is in the process of upgrading to 300,000 tons of ore (15,000 ounces of gold) per year production during 2011 at an average cost of less $400/ounce, followed by a revised estimated industrial production level of approximately 1.5 million tons (77,000 ounces of gold) per year. Two of the new mills are on site and will be installed and operational in the coming months with a third new mill and an expanded flotation circuit later in the year.

"This agreement is a dynamic development for the advancement of Toukhmanuk and Getik, both in terms of finalizing our production expansion and further exploration to expand our resource base," Global Gold Chairman and Chief Executive Van Krikorian said.

Upon completion of the $5 million in funding, Global Gold and Consolidated Resources will cause the Properties to be contributed to a new joint venture company under the parties' control, whose identity and terms will be mutually agreed within a year. Rasia, a Dubai-based principal advisory company, led the investment transaction.