Press Release
Global Gold Co.
Andrew Barwicki
Investor Relations
203-422-2300
Global Gold Registers Significant Discovery in Armenia at Toukhmanuk
Friday October 17, 9:37 am ET
GREENWICH, CT–(MARKET WIRE)–Oct 17, 2008 — Global Gold Corporation
is pleased to announce that its exploration, test mining, and processing
work has uncovered a significant gold and silver discovery in the
Central Area of its Toukhmanuk property in the north central mineral
belt of Armenia. Results of recent test mining, diamond drilling of over
20,000 meters, surface sampling of the No. 1 and 15 mineralized areas
indicate that there are at least eighteen mineralized zones within a
150 m to 200 m wide east-northeast trending alteration zone in the
Central Area of the property.
These mineralized zones are 5 m to 25 m wide, extend more than 300 m
along strike, and extend to more than 150 m at depth. Assay results of
surface sampling show values ranging from 1 g/t Au to 280 g/t Au, and
from 8 g/t to 520 g/t Ag. Gold mineralization is associated with
sulphide minerals, in places as distinct veins within the wider
alteration zone. To date, Global Gold has tested only approximately 20%
of the mineralized trend in the Central Area, which is interpreted to
extend to more than 1.5 km along strike. There are other similar target
areas which have not yet been tested on the property. The entire
Toukhmanuk license area is now 51.5 square kilometers and the Central
Area is 2.2 square kilometers.
Historical GKZ (State Committee on Reserves) records in the C1, C2 and
P1 categories indicate 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, based on vein widths between 1 and 1.5 meters
in veins 1 and 15. The new discovery shows much wider veins and areas of
mineralization, in areas, at time coincident with the vein 1 and 15 GKZ
records but often divergent with those veins. Thus, new resource
estimates and mine planning are currently underway. 60,000 tonnes of ore
at an average grade of 3.6 g/t has been mined and stockpiled near the
plant for processing through the winter; recoveries for both gravitation
and flotation concentrate being produced average over 80%.
Global Gold Chairman and CEO Van Krikorian stated, "We are positively
delighted with this new discovery for ourselves and for Armenia. We
acquired this property in 2005, and had a long learning curve, requiring
us to explore new areas, think outside convention, and experiment with
our own lab and processing technologies to get to this point."
Armenian Minister of Energy and Natural Resources Armen Movsissyan also
received the news of the discovery, positively noting, "Armenia has a
rich potential for precious metal mining, and I am happy to congratulate
Global Gold on this discovery and its plans to continue development.
Foreign investors should know that this government is here to help, and
we are glad that our own experts have played a role in assisting the
company here."
Global Gold commissioned its upgraded gravitation and flotation gold
processing plant in Toukhmanuk, Armenia on December 20, 2007, and is now
constructing an additional flotation and enrichment circuit to increase
concentrate grades. A new tailings dam was also constructed in 2007.
Current plant capacity is 100,000 tonnes per year. Current throughput is
approximately 6,000 tonnes per month.
In addition, the Company received international, ISO, certification for
its laboratory at the Toukhmanuk site, and has been providing laboratory
services to other companies. More recently, the Armenian Ministry of
Economy also accredited Global Gold’s laboratory as one of those
authorized to provide results for the Armenian government.
Global Gold Corporation, an international gold mining, development and
exploration company with properties in Armenia, Chile and Canada, is
committed to building shareholder value and maintaining social and
environmental responsibilities. Minera Global Chile Limitada is a
subsidiary through which Global Gold does all of its business in Chile.
Global Gold Mining LLC operates in Armenia as a subsidiary of Global
Gold Corporation.
Source: Global Gold Corp