Announcement

Collapse
No announcement yet.

Global Gold to Acquire 100% of Tukhmanuk Mine in Armenia Ahead of Sc

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Global Gold to Acquire 100% of Tukhmanuk Mine in Armenia Ahead of Sc

    GLOBAL GOLD TO ACQUIRE 100% OF TUKHMANUK MINE IN ARMENIA AHEAD OF SCHEDULE
    AND COMMENCES PRODUCTION -- GOVERNMENT APPROVES MINING PLAN

    Market Wire Incorporated; Aug 02, 2006

    Global Gold Corporation (OTCBB: GBGD) (_www.globalgoldcorp.com_
    (http://www.globalgoldco rp.com) ) today announced the planned
    acquisition of the remaining 49% of Mego-Gold, LLC, the company
    holding the licenses to the Tukhmanuk mine and exploration areas in
    Armenia. According to the August 1, 2005 acquisition agreement, Global
    Gold Mining, LLC acquired a 51% interest for $1.5 million and was
    to pay another $2 million by August 1, 2007; the agreement, amended
    as of July 19, 2006, allows for the acquisition of the remaining
    49% in exchange for $1 million and 500,000 shares of Global Gold
    Corporation's stock.

    The Tukhmanuk property consists of over 4,100 hectares in the Aparan
    region. The property hosts numerous quartz veins with gold and
    polymetallic mineralization. The presence of the mineralized zones
    suggested by the existing maps have been confirmed by field mapping
    in the 1st quarter of this year and detailed mapping is ongoing
    to define and surface sample the mineralized zones to 1:10,000
    scale. Historical GKZ (State Committee on Reserves) records in the
    P1, C1 and C2 categories indicate a target of 12.1 million tonnes
    of mineralization, averaging 6.74 g/t gold and 30.79 g/t silver,
    including 2.6 million oz/gold and 11.9 million oz./silver. Global
    Gold is updating the categories of this mineralization.

    The existing gravity concentration plant has been serviced and
    upgraded to full capacity with the addition of a new drive motor for
    the second mill and additional tails recirculation line to attempt
    to improve recovery. A fully functional sample preparation facility
    has been installed with western standard equipment including AAS
    (Atomic Absorption Spectrometry) analysis capability for plant and
    grade control samples.

    Two Caterpillar 325 excavators, a Caterpillar D9R bulldozer, 2 x
    20 tonne GRAZ trucks and a grader have recently been purchased for
    use in addition to equipment previously purchased for the open pit
    mining of the oxide zone above the Armenian approved C1/C2 category
    mineralization. A mining plan has been submitted and approved by
    the relevant Armenian Governmental authorities for the mining and
    processing of an expected 150,000 tonnes of oxide material over a 2
    year period. Production has commenced, and full plant commissioning
    is anticipated in October.

    Drilling of the C1/C2 category mineralization is also in progress with
    a program of 10,000 meters planned to confirm the resource and carry
    out western standard reserve/resource estimation at year end; 2,500m
    of drilling have been completed to date. The terms of the amended
    acquisition agreement for Mego-Gold provide for the payment of the $1
    million and delivery of 500,000 shares of Global Gold Corporation on
    or before August 19, 2006 and also contain a contingency allowing the
    sellers to sell back the 500,000 shares on or before September 15,
    2007 for a payment of $1 million if Global Gold Corporation stock
    is not traded at or above $2.50 at any time between July 1, 2007 and
    August 31, 2007.

    To date, Global Gold has focused its activities at Tukhmanuk,
    Hankavan and surrounding areas in the North Central Armenian
    belt. At Hankavan, a drill program is underway to follow up on the
    2005 drill program. Global Gold is also conducting exploration at
    Getik in Northern Armenia and holds joint venture interests with
    Iberian Resources at the southern Armenian Marjan and Litchkvaz
    projects. Global Gold Corporation also owns a twenty percent
    participation right in any new exploration undertaken in Armenia by
    Sterlite Gold Limited or its successors.

    To the extent that statements in this press release are not strictly
    historical, including statements as to revenue projections, business
    strategy, outlook, objectives, future milestones, plans, intentions,
    goals, future financial conditions, future collaboration agreements,
    the success of the Company's development, events conditioned on
    stockholder or other approval, or otherwise as to future events, such
    statements are forward-looking, and are made pursuant to the safe
    harbor provisions of the Private Securities Litigation Reform Act of
    1995. The forward-looking statements contained in this release are
    subject to certain risks and uncertainties that could cause actual
    results to differ materially from the statements made. Former Soviet
    country estimations are presented for historical reporting and to
    provide a basis for assessing Global Gold's choices for its business
    activities and not to be understood as indicating the existence of
    reserves or resources.

    Global Gold Corporation is an international gold mining,
    development and exploration company with mining properties
    in Chile and Armenia. Global Gold Corporation is located at 45
    East Putnam Avenue, Greenwich, CT 06830. The main phone number is
    203-422-2300. More information can be found at _www.globalgoldcorp.com_
    (http://www.globalgoldcor p.com) .

    Contact: Drury J. Gallagher Chairman [email protected]_
    (mailto:ggc@globalgoldcor p.com)
Working...
X