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)