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Local Villagers at MELIQ, OPPOSE Global Gold Corp's gold mining project in Armenia

The TOUKHAMNUK GOLD MINE License is coming up for renewal on February 28, 2015 and Global Gold Corp (OTCmarkets:GBGD) may lose the license. Frankly they should lose the license since they have failed to meet their contractual obligations under the terms of their mining contract.

GBGD, has failed to mine 153,000 tones of ore through open pit operations and 1,095,250 tones od ore through underground mining operations. In fact, according to Government of Armenia RECORDS, GBGD only mined 86,400 tones of ore from open pit operations at the Toukhmanuk gold mine between 2006 - 2012. Nowhere near the 1,259,400 tones of ore required to be mined under the terms of the mining license issued in 2006.

Even the local community opposes GBGD's subsidiary, Mego-Gold, to build a third tailings dam in the area to support future plans to operate the mine exclusively as an open pit operation. They failed to follow the terms of the first mining contract and now they want to be rewarded with a new mining contract.

The MELIQ villagers complain of Global Gold's failure to pay employees with payments still outstanding for over 2 years, environmental damage, abandonment of two other tailings dams, water pollution and soil contamination.

Let us not forget that GBGD's 49% joint venture owner of the Toukhmanuk Gold Mine, Consolidated Resources Armenia (CRA), is suing GBGD for defaulting on approximately $2 Million in loans.

The JV between CRA and GBGD has failed and CRA is also seeking a court ordered liquidation of the JV assets, which include the Toukhmanuk Gold Mine. (see blog: CRA Seeks Court Ordered Liquidation of JV and Toukhmanuk Gold Mine: Jersey Court Orders Trial To Commence On An Expedited Basis)

Read below ECOLUR's report on the current community opposition to the Toukhmanuk Gold Mine.

ECOLUR is a local Environmental NGO.... EXCERPT from ECOLUR.am web site:   http://www.ecolur.org/en/news/dialog-with-officials/meliq-villagers-dont-believe-quotgentlemanquot-promises-by-quotmego-goldquot/6583/



Meliq Villagers Don't Believe "Gentleman" Promises by "Mego Gold"


11:06 September 11, 2014
EcoLur

 On 10 September the public hearings of Tukhmanuk gold mining project were held in Meliq Village, Aragatsotn Region, Armenia.

“Today we are discussing the first stage of mining, which will last 6 years. During these years ore will be brought from the open pit, it will be processes without any chemicals to produce concentrate,” said “Mego Gold” LLC Director Ashot Poghosyan and noted that the mine has 19 million tons of ore under estimated reserves.

On behalf of Meliq community, Village Head Hakob Mkrtchyan presented some demands to “Mego Gold” LLC. “For years you have given us promises, but to no avail.

On behalf of our community I’m posing demands in regard with the implementation of social programs. So if the community agrees and the mine works, Mr. Poghosyan, laying a drinking water pipeline is a must till the second half of October.

The second demand to construct a reservoir with the capacity of 300,000 cum in the upper part of the community for irrigation purposes. It’s not costly. Then, the construction works of the internal network of the trunk road, which is in poor condition. Also it’s high time to think over the main problem - a road joining the highway.”

“Under the geological and environmental data, when a tailing dump is full, it must be covered with a thick layer of ground and fenced so as an animal or human doesn’t enter its territory. The first tailing dump is full, nothing was done, the second is full as well… even a drop of rain causes it to flow into the river, which we use,” said one of the elderly community members. In reply Ashot Poghosyan mentioned that the tailing dumps are full of gravitational tails, which must be processed in the frames of this new project.

You destroyed the water in the village for 40 days, you didn't come personally and then the police detained me together with several other weather, you didn't come when we blocked transportation. You didn't construct anything for 40 days, as if there is no one living in this village,' another Meliq Villager told Mego Gold Director.

 Ashot Poghosyan gave the following reply, 'We have so-called 'gentleman' agreement with the village rural municipality. If any waterline stops operating in our area – around 226 ha, we are repairing it...once again I'm outlining this is a gentleman's agreement.'

 The reply made the participants more angry, 'After explosions water sources may change their directions.' The next question the residents were worried about was Mego Gold's debt of 8 million AMD since 2006. 'Why aren't you paying off...pay off people's money, then tell the people to come and work,' the residents said.

VIDEO OF MEETING:

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Translated from Armenian

To: Mr. Badalyan,
Prosecutor of Yerevan city

From: Hrayr Ghukasyan
Global Gold Mining LLC
Representative of the Armenian Branch

Address: 2a/2 Tumanyan, Yerevan, Republic of Armenia Tel: 010 52-94-18, 093 988-797
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A.R.Zakharyan
(signature)
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