Friday, May 31, 2013

Global Gold Corp (otcqb: GBGD) Makes False Statements About its Mining Production at its TOUKHMANUK GOLD MINE in Armenia

Through a Joint Venture registered in the Isle of Jersey, Global Gold Corp. ("GBGD") is the operator and owner of 51% interest in the Toukhmanuk Gold Mine located in northern Armenia. The balance of the ownership in the project, 49%, was purchased by JV partner Consolidated Resources of Armenia (CRA) in 2011 for $ 5 million equity and $ 1.6 Million in loans. Due to the failure of the JV, CRA is now seeking a court ordered liquidation of the JV assets as well as recovery of $ 1.6 million in defaulted notes, plus interest and damages. 

In 2013 I received copies of official correspondences issued by the Ministry of Energy and Natural Resources of the Republic of Armenia which included official mining volume records reported by GBDG subsidiary Mego-Gold.

While GBGD has claimed since its January11, 2008 Press release (click here to Read it) That its mine was commissioned as of December 20, 2007 with a Capacity of 100,000 Tones per Year Processing of ore 2 - 3 Grams Gold per tone. 

GBGD has never mined 100,000 tones of ore per year from its re-commissioned mine and plant and its grades have fallen over time to about 1g / t.

This announcement appear to be just hype and Other Production since Never was achieved. In 2008  its SEC filings GBGD Reported in 82,000 Tones of ore mined That it Grading 1.85 g / t Gold but in Official Government in the Republic of Armenia Made filings, GBGD Subsidiary , Mego-Gold Reported That it only mined ore Grading 3.34 g of 45.660 Tones / t Gold.  (See TABLE below). 

" Following the [Annual Shareholders'] Meeting, there was a review of Global Gold's Current Operations. In Armenia, Production At Toukhmanuk mining Property in June reached an output rate of about 300 ounces of Gold per month. Global Gold anticipates this monthly Production rate to be sustained until the plant production is expanded to 15,000 ounces per year in the first quarter of 2010 and then to an industrial production level of over 100,000 ounces per year. "   

Somehow the "300 ounces of gold production per month" never materialized along with the "sustained" production expansion to "15,000 ounces per year". In the official filings made with the Government of Armenia's Ministry of Energy and Natural Resources (MENR), GBGD stated it did not mine in 2009 and had absolutely no GOLD production (see table below). 

In 2010  the Toukhmanuk Mine Production recommenced in its SEC filings and GBGD Reported That mined ore with a grade of 21,000 Tones of 2.08 g / t Gold Reported These volumes are significantly higher That the Government of Armenia Official filings also GBGD Subsidiary Made by Mego-Gold , 16,800 tonnes of ore mined That it Grading 1:17 g / t Gold.  (See TABLE below). 

In 2011  in its Annual report Made Additional FALSE statements with the SEC claiming it Tones of ore mined 21,400 Grading 0.92 g / t Actually When in fact it Tones of ore mined 11.860 Grading 1.54 g / t of Gold.  (See TABLE below). 

There has been no production at the Toukhmanuk Gold Mine since 2012 due to problems in securing a permit for a new tailings dam. Local environmental NGO's and local villagers have opposed the building of a new tailings dam.

In 2014 Global Gold Corp was sued by its Joint Venture partner, Consolidated Resources Armenia (CRA), for defaulting on $ 1.6 Million in loans. CRA is also suing GBGD in the Royal Court of Jersey claiming the failure of the JV and requesting a court ordered liquidation of the JV and the Toukhmanuk Gold Mine.


About this Blog:  Between 2009 and 2012 I was an active investor in the mineral exploration sector in the Republic of Armenia.  Our main project in Armenia was the MARJAN polymetallic gold and silver project located in near Sissian.  My JV partner, Mr. Van Z. Krikorian, President of Global Gold Corp (otcqb: GBGD) and Trustee of the Armenian Assembly of America, used corrupt means including using his influence with the US EMBASSY in YEREVAN to secure an indictment against me for theft of the JV and to corrupt the Armenia judicial system to give him a favourable ruling.

Mr. Van Z. Krikorian is the President, CEO and Legal Counsel of Global Gold Corp. (otcqb:GBGD), a penny stock listed on the OTC  markets. His public filings with the US Securities and Exchange Commission  fail to fully disclose the reality on the ground in Armenia in the promotion and development of GBGD's gold project, the TOUKHMANUK GOLD MINE.

This blog is an effort to bring transparency of the activities of Global God Corp. (otcqb: GBGD) and Mr. Van Z. Krikorian in Armenia.

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