ArmInfo
23.05.2007

American Global Gold Corporation invests $9 million in mining and
exploration sector in Armenia

Yerevan. General investments of Global Gold Corporation (GGC)
in the mining and exploration sector in Armenia from 2004 to the end
of 2006 totaled about $9 million. In 2007, the company has already
invested about $1 million in the sector, GGC Regional Director Ashot
Poghosyan says in an interview with ArmInfo.
"GGC comes out for creation of more favorable situation for ore
recovery and research in Armenia to help the country attract new
companies and develop manpower resources in the sphere," he said.
A. Poghosyan pointed out that about $6 million were invested in
the project of mining at Tukhmanuk gold deposit in Aragatsotn region.
The funds were spent on purchase of equipment for modernization of the
laboratory and on exploration of the reserves of gold and other metals
at Tukhmanuk, Hankavan, Marjan and Getik deposits. For this purpose,
last year the company holed 13,400 metres. A. Poghosyan added that
last year about 40,000 tons of ore were recovered from Tukhmanuk
deposit. However, the ore was not processed, as the plant needs
modernization.
GGC Regional Director said that this year the company has
concentrated efforts on further exploration works in Hankavan,
Marjan and Getik, as well as modernization of the plant and new
laboratory at Tukhmanuk deposit. He explained that the corporation
will start processing the recovered ore after modernizing the
concentrating plant in Tukhmanuk and establishing a flotation
line at the plant. "At present, the plant operates on the
principles of gravitation and needs modernization for more
effective processing. After modernization of the plant, metal
extraction is to be raised from the present 25% to 80%," he said.
A. Poghosyan said that in 2007 the company plans to invest
over $5 million in the mining sector in Armenia. Exploration
works, including boring, will be continued. 4,500 metres are to
be holed at Tukhmanuk deposit. To accelerate boring, two specialized
companies will be attracted. A. Poghosyan believes that boring can
be completed in 4 months at best if the weather is favorable. Ore
reserves at Tukhamanuk deposit will be specified after additional
geologic exploration. In 2007 the company started constructing a
tailing dump in Tukhmanuk. "All these works are to be completed by
autumn of 2007," he said. The results of last year’s explorations
are currently specified. Last year, almost all the laboratories in
the country were engaged in orders of GGC. They received 10,000
samples, 500 of them are still processed. The processing of each
sample costs the company 6,000 drams. Modernization of own
laboratory will allow saving funds and have own analytical center
for samples from other deposits of GGC.
He also added that in 2007 the company will continue exploring
Hankavan molybdenum deposit and its peripheries. GGC has also
acquired an up-to-date installation for cutting to accelerate
exploration works. The company attaches great attention to
improvement of exploration phases and ecology before starting
industrial stages of mining and processing, Poghosyan said. The
program on exploitation of Hankavan deposit for over $50 million
has already been submitted to the Armenian Government. Exploration
of Getik ore field in Gegharkunik region and Marjan gold and
polymetallic deposit in Syunik region continues, he said. However,
weather holds the company from exploring the deposits in Getik and
Marjan so far. At the end of 2007 the company will complete the
phases of preliminary exploration on these deposits, Ashot
Poghosyan said.