On January 11, 2008 Global Gold Corp. issued a Press release (click here to Read it) (otcqb: GBGD) and announced it had commissioned its TOUKHMANUK That GOLD mine as of December 20, 2007. According to the Press Release the Toukhmanuk Gold Mine has a grade of 2-3 g / t and a processing capacity of 100,000 tones of ore per year. [Note: That grade and volume would should produce between 5,900 to 8,800 oz of Gold, assuming a typical recovery of 92%]
Also in 2008, Independent Director of Global Gold Corp, Mr. Ian Hague, advanced to GBGD $ 3,500,000 to support the Company's activities.
Meanwhile, the TOUKHAMANUK GOLD MINE was operating, and exploration expanded at the MARJAN GOLD PROJECT, employees were not paid, contractors were not paid, but Mr. Ashot Poghossian, GBGD's Country Manager, started building himself a 2 story Country Home, complete with private swimming pool, nestled in walled off compound.
Villagers were Arevis of Melik and the Promised Better jobs and lives by GBGD's Country Manager, Ashot Poghossyan . Today villagers of Melik and Arevis live in abject poverty.
Its not enough that the promises from Mr. Ashot Poghossyan have never materialized, but they treated their employees from the local village of MELIK as unpaid labourers essentially "slaves".
When they could not afford to pay the villagers, who earned less that $ 500 a month, they converted their salaries to sham company loans. That the Company announced "As of December 31, 2010, the Company had loans to employees in Armenia DUE of approximately $ 286,000. The loans accrue an Annual Interest rate of 14% At."
Year end report in 2010 it announced GBGD That's "The Company has been brought to court by disgruntled former employees and contractors Several unpaid salaries and for Invoices, respectively, as Well as some Penalties for non payment Which totals approximately $ 350,000."
About this Blog: Between 2009 and 2012 I was an active mineral exploration sector in the Investor 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 EMBASY 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 Scurities 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.
On November 20, 2015, Mr. Van Krikorian, President and CEO of Global Gold Corp (otcqb: GBGD) announced that the development of its Toukhamnuk Gold Mine located in the Republic of Armenia was "delayed". [see third quarter 10-Q as filed on the US SEC website]
In my analysis this sounds like wishful thinking. For all intensive purposes the Toukhmanuk Gold Mine is dead.
Here are the reasons why I believe the project is dead:
1. GBGD is a financial mess with over US$17MM in current debt and little or no cash available. GBGD also confirms it has "no firm commitments from third parties to provide additional financing".
2. Linne Mining, the contract miner that was hired to build the Toukhamnuk Mine, has notified GBGD that it wants permission (whatever that means) to walk away from the project and is further demanding payment of US$3,204,951. GBGD has stated in its SEC filings that Linne Mining is the first ranking creditor.
3. Van Krikorian is threatening to sue Linne Mining if it walks away. If this happens, this will be the 4th major lawsuit that GBGD and Van Krikorian will be involved in over their mining projects. I do not know who in their right mind would want to do business with GBGD and Van Krikorian in Armenia, considering his track record of legal pursuits in his business dealings.
4. While GBGD has received a permit to build a tailings dam from the Minstry of Energy and Natural Resources of Armenia, residents of Meliq Village have been protesting the building a new tailings dam. GBGD has two older tailings dams that have failed and have leaked in to the environment. So far the protesters have managed to block GBGD in moving the tailings dam project forward.
5. The published resources of the Toukhmanuk Mine are suspect. GBGD does not have proven reserves, it is planning to mine GKZ approved mineral resources, which appear suspect. Furthermore, these resources have never been confirmed with independent 3rd party analysis. The professional geologist that prepared the Technical Report on the project (NI 43-101) recommended:
a) All previous drill core be reviewed with an objective of firming up information on vein density and mineralization
b) Check assays should also be carried out at a certified laboratory outside Armenia so that future data is conformable to CIM and JORC standards
c) Resources at Toukhmanuk need to be better defined with further drilling within the preliminary pit outline and a feasibility study carried out on immediate mine development. Cost US$2MM.
6. GBGD drilled 4,000 meters of diamond drilling outside the central are to expand resources, but the results were never published. It appears GBGD never found any gold in the drill results and has hidden this fact. This again makes the gold resource at Toukhmanuk suspect.
7. A former employ of GBGD companies, confirmed to me that the resources used by GBGD to calculate the published resources at the GKZ were fabricated in some sections. See my blog http://toukhmanuk.blogspot.ca/2012/06/what-are-real-gold-grades-at-toukhmanuk.html
8. Global Gold has filed conflicting production reports on the Toukhmanuk mine between 2007 and 2011, overstating its mining volume and playing with their gold grade. Again raising the prospect that the resource is suspect. See my blog: http://gbgd-armenia-mining.blogspot.ca/2013/05/global-gold-corp-gbgd-overstates-mining.html
So where does GBGD and Van Krikorian come up with funds to push the project forward? Directors have already advanced over US$2 million to the company. Even if they push this project forward, the local population is against the project.
The published NI-43-101 Technical Report does nothing to prove the gold resources are confirmed, the "professional" geologist never sampled any of the core and relied 100% on the data provided by Van Krikorian and GBGD. That data, is suspect because 4000 meters of drill results were hidden from the public, a former employees of GBGD has confirmed the data some of the data was fabricated, and Van Krikorian and GBGD has been caught in a game of manipulating his own mining data as filed with the SEC that contradicts the data filed with Armenian Government.
I don't know what Van's end game is, but it does not look pretty.
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.
