Australian Company To Build Gold Processing Plant In Armenia

AUSTRALIAN COMPANY TO BUILD GOLD PROCESSING PLANT IN ARMENIA

Noyan Tapan
May 25 2007

YEREVAN, MAY 25, NOYAN TAPAN. Iberian Resources company (Australia)
has already made its first production – 12 kg of gold, which was
mined in Terterasar mine in Syunik marz. Manvel Bagratian, director
of the company’s Armenian subsidiary, told reporters on May 25 that
the confirmed gold resources at Terterasar and Lichvaz-Tey mines make
3 and 17 tons respectively. The company has made investments of 15
million dollars so far.

M. Bagratian said that Iberian Resources intends to build a gold
processing plant in Meghri. About 50 million dollars will be spent
on construction work.

It is envisaged to put the plant into operation in 2009. The daily
production of the plant will amount to 10 kg of gold.

According to M. Bagratian, demand for gold is great in the Armenian
market but under the current tax legislation it is not profitable to
sell gold on the local market as in this case the company has to pay
20% VAT.

In 2005, Iberian Resources and Global Gold Mining company (US)
acquired shares of the Armenian company Sipan 1 that had a licence
for exploring the above mentioned mines. Last year Iberian Resources
became the 100% shareholder of Sipan 1.