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Ecolur Reports That Toukhmanuk Gold Mine Expansion Rejected by the Armenian Government

Local Armenian NGO, , published an article today on its website that GBGD's flagship gold mine in Armenia, the Toukhmanuk Gold Mine owned and operated by its subsidiary in Armenia, Mego-Gold, had its mine plan REJECTED by the Ministry of Nature Protection (MNP).

In April 2013 the MNP rejected the tailings dam expansion and changed that ruling in June 2014 after the minister was changed. GBGD may still get an approval next year based on a new application. The problem is that GBGD is in technical default of its mining obligations and their mining license expires in February 2015; they may be out of time to make this gold mine work.

GBGD has failed to make this gold mine work over the last 6 years during the biggest gold bull market. Now GBGD has $14M in current debt with little or no cash, and gold prices are sinking. 

GBGD is also being sued by its 49% joint venture partner of the Toukhmanuk Gold mine, Consolidated Resources Armenia (CRA), in the Royal Court of Jersey.   CRA is seeking the court ordered liquidation of the JV and the Toukhmanuk Gold Mine.   Meanwhile there is an injunction baring GBGD to take any action without the consent of CRA, that would encumber the asset.

Google translate of Armenia full version of article:

Nature Protection Ministry Turned Down Tukhmanuk Mining Project

18:29 December 15, 2014 

The Ministry of Environment, "Environmental Expertise" is nixes "Mego Gold" is represented by the surface of the gold / Central station / deposit revised work plan.

Experts from the Ministry justification for the negative findings are as follows.

"- Adjusted to the situation map can not be verified due to lack of open and distance from the mine dumps economy and the possible impact on hydrological

- Hydrogeological and geological conditions in the area around the mine is not a full examination of the missing information and sources of groundwater, groundwater resource protection measures, if necessary, wet blasting and drilling program. In addition, the first stage of the operation of the center will be running mine Getik river bed changes, but the material is missing as a result of environmental impact assessments, exposure prevention, elimination or reduction measures for

- Design documentation is missing so far by the company's operations and planned activities on the environment as a result of all the possible positive and negative impacts of integrity, as well as their interaction. In addition, under the project "Environmental" of paragraph 9.1, the operation is completed, reclamation of the subject, again only to be violated as a result of the open pit areas - 4.39 hectares, dumps - 4.34 hectares, serving pit road - 4.4 hectares, was necessary for the implementation of the reclamation expenditures without justification, however, by drawing materials, pile economy under to be sold to a larger area of ??land than is represented in the project documents. In this case there is a particular area on the company's environmental impact for a full and complete picture of conclusions

- According to the "Geological, Mining, lernatekhnikakan, labor protection" brittle rock volume of 3.7 point in the first round of pit contour is hoghabusakan layer 109.82.0 cubic meters remaining aparnerine` 1328913.0 and 1897672.0 cubic meters of rock overburden rock volume that is not corresponds to the "environmental" groups Table 3.2 presents data missing hoghabusakan layer volume and its storage and use of the procedure in accordance with the Government on 08.09.2011. Decision No. 1396-N requirements

Modified the first phase of the project includes pit ore reserves established for only 4.8 percent of the full deposit is required for the design of complex documents including mine the remaining 95.2% of the reserves, the second stage of the design phase of a project to make the enlarged

- Mine does not have to limit emissions / MPE / norms scale / permissions, the waste from the company's activities are not registered, registration, normavorvel, as well as not fully implemented "Soil" The Code of paragraph 3 of Article 59 and Article 13 The requirements of paragraphs 17

- The design documents for technical assignment, open the first phase extraction productivity filed from 2010 onwards, at first it made 120.0 thousand tons in 2011, at 150.0 thousand tons, while in 2014 it will reach 180.0 million tons, followed by 2015 The first stage performance was scheduled to be open to 300.0 thousand tons, while the "environmental impact" part of the operation of a mine expansion project. However, the finalization of the revised design documentation is not clear what changes have been made to date and the date of deposit. the number of resources are included. In addition, the Ministry of Energy and Natural Resources Minister 18.11.2014 No. 01 / 29.3 / 5190-14 notified in writing that "Mego Gold" LLC will provide the Ministry of Energy and Natural Resources Agency OHP 2009 year. No. 234 dated October 30, 3rd paragraph reserves terusumnasirvats problem solving performance requirement of additional exploration, mining stocks as a result of the re-establishment of the balance is not registered

- Mined ore is planned to develop a company owned by a maximum of 100.0 thousand tons per year capacity plant, which does not correspond to the mine production capacity and has no positive conclusion

- It is necessary to introduce the company's activities in the area of ??financial and environmental impact assessment

- It does not work out of the stock as of the date they are and are not listed as a separate hankamarminneri, which is fixed to the working professional opinion of the conclusion of this defect does not provide a complete guarantee "Environmental Impact Assessment" Law 5 Article 1, paragraph "a" sub-paragraph 4 of the full implementation of the requirement,

- Working draft submitted to the alternative solutions, which might not provide the "Environmental Impact Assessment" of Article 5 § 1 of the Part "B" of the Rule requires full implementation. "

Note that on June 30, the Ministry of Environment approved the "Mego Gold" in gold extracting plant tailing dump project, which is still the same ministry in 2013 was rejected. 

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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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