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 mineralization6. 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.
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.
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.