GLOBAL GOLD CORPORATION PROPOSES $1.5 MILLION ANNUAL INVESTMENT IN ECOLOGICAL INFRASTRUCTURE NEAR HANKAVAN DEPOSIT

arminfo
2007-07-11 08:33:00

American Global Gold Corporation is ready to propose the Government
of Armenia $1.5 million annual investments in the strengthening of
the ecological infrastructure near Hankavan molybdenum deposit. This
amount exceeds the summary annual expenses for ecology by all the
mining enterprises in the country, Chief Geologist of the GGC Armenian
Office Henrik Lazarian says in an interview with ArmInfo.

The investment will be spent on forestation and relief
purification. Under the programme for 2007, GGC is engaged in
additional appraisal of the central part of Hankavan deposit in
accordance with the requirements of the international standard
(Canada, USA, Australia) i.e. dense drilling for reliable reserve
assessment. Simultaneously, the corporation carries out additional
appraisal of the hydro-geological situation for future development of
Marmarik-Hankavan river network base level. The constriction sites
for the processing plant and a tailing dump are specified taking
into account the ecological peculiarities of the area. H. Lazarian
said Hankavan deposit was explored early in 50s up to 1962. The
approved reserves were registered as unbooked. In that period of
time, the capacities of Kajaran integrated plant were growing and
Agarak mining and processing integrated plant was activated. The
USSR was supplied with molybdenum and was not ready for additional
capital investments. With the geological situation changing in Armenia,
Hankavan deposit became a valuable industrial facility. GGC reappraised
the deposit through mining and drilling, drew a detailed large-scale
geological map, prepared a techno-economic study of deposit development
conditions and appraised the reserves.

The chief geologist says the reserves are estimated at some 108-110
million tons, including 43-44,000 tons of ore and 63,000 tons of
molybdenum, which can ensure a profitable development of the deposit
and manufacture of 5 million tons of ore annually. All these works
were carried out as of September 1 2006. Moreover, Hankavan deposit
is surrounded with gold occurrences which are poorly appraised and
may be of industrial interest, Lazarian said.

It is noteworthy that under the company’s business-plan, $54.6 million
is to be invested in the exploitation of Hankavan copper and molybdenum
deposit, Kotayk region, Armenia, and 570 jobs will be created by
2009. GGC plans to pay $2.05 million for salary and $5 million taxes
to the state budget annually. GGC has been engaged in Hankavan deposit
since the beginning of 2004 and has invested in it over $2.5 million.