Global Gold Corporation and privately held Consolidated Resources Armenia announced that an updated NI-43-101 format independent technical report prepared by Behre Dolbear International Limited has been completed for the Toukhmanuk and Getik properties in Armenia. At Toukhmanuk, a 2.6 million ounce gold and 17.8 million ounce silver resource at average grades of 2.1 g/t and 14.1 g/t, respectively, using a 0.6 g/t cut-off is reported for the already operating bulk open pit mine. Following a rigorous five month review of drill core, assay and geological data by Behre Dolbear and Gemcom and the creation of a new Surpac resource block model, the comprehensive report was completed and delivered in connection with the advancement of the Global Gold Consolidated Resources joint venture announced in April 2011.
For the first time, the report also discloses that in 2011, Global Gold has "uncovered significant unanticipated gold-silver vein zones in a region where the known vein-sets splay and diverge." The new discoveries are vein and stockworks which parallel Global's 2008 discoveries at Toukhmanuk. Those discoveries in 2008 significantly changed the outlook at Toukhmanuk from a narrow vein potential underground mining deposit to a vein and stockwork open pittable deposit with vein zones ranging from 5 to 25 meters wide. The 2011 discoveries have revealed four new vein zones outside of the existing drilling grid and also ranging from 5 to 25 meters wide in the central section. These vein zones, which require further exploration, have already produced ore averaging slightly more than 2 grams per tonne that is being processed at the plant on site.
In addition this year, Global Gold has concluded 4,000 meters of diamond drilling in both the central section and in other parts of the license area. As of today, Global Gold has completed approximately 24,064 meters of diamond drilling at Toukhmanuk (beyond the Soviet era levels of exploration) primarily covering the 2.2km2 central section of the deposit and selected target areas along and outside of the corridor in the broader 53.76 km2 deposit.
Further updates are anticipated in the next 6 months and on a continuing basis, as results are received from the new discoveries, the recently concluded 4,000 meter diamond drilling program, and further analyses from prior exploration work.
Stripping and mining activity at the deposit has steadily increased from summer to fall this year, with two stages of stripping completed in accordance with the open pit mine plan and mining of ore reaching 1,100 tons per day, adding to an existing ore stockpile that now exceeds 30,000 tons for milling during the winter. Mining is taking place pursuant to Global Gold's mining license and previously reported reserve determinations by the Armenian Government. On October 27 and November 18, 2009, the Company announced the approval of reserves for Toukhmanuk by the Republic of Armenia's State Natural Resources Agency, available at http://us.lrd.yahoo.com/SIG=14t7rtkkv/EXP=1320239539/**http%3A/www.globenewswire.com/newsroom/ctr%3Fd=235104%26l=10%26a=www.globalgoldcorp.com%26u=http%253A%252F%252Fwww.globalgoldcorp.com%252Fwww.globalgoldcorp.com.
The report also includes information on the previously announced initial plant expansion which is progressing well. Two new mills are installed and in testing, along with further near-term improvements to boost plant capacity and recoveries. Two concentrate shipments of 60 tons each are proceeding to offtaker Industrial Minerals in October and further shipments will follow as milling ramps up throughout the winter. The report notes that the plant "has been established without recourse to cyanide reagents, which ensures that the plant meets stringent waste and tailings quality benchmarks and is reputed to be the leading Armenian company in pursuit of sustainable mining and processing practices."
The report also reviews exploration at the 27 km2 Getik property, where exploration activity commenced in the 1920s, noting that Global Gold has done geological mapping, ground geophysical surveys, trenching and a small amount of diamond drilling. The report notes that there is potential for an open pittable deposit, but further exploration is necessary and underway, Yahoo Finance reported.
