Wednesday, October 31, 2007

Gold & Platinum found on Beaches: Mine slated for Chiloe Islands Archipelago?

Global Gold Closes Chilean JV Acquisition at Valdivia; Plans to Commence Production in First Half of 2008

Options Two Additional Mining Properties at Ipun and Chiloe Islands in Chile With the Same Partner


Global Gold Corporation (OTCBB: GBGD) is pleased to announce that the Company has closed its joint venture agreement with members of the Quijano family by which Global Gold assumes a 51% interest in the placer and hard rock gold Madre de Dios property in south-central Chile, near Valdivia. The name of the new joint venture company is Global Gold Valdivia. Scott Wilson Roscoe Postle of Toronto conducted an independent review prior to the closing.

In addition, Global Gold announced that it has entered option agreements to acquire 51% interests in joint ventures for the Estrella del Sur Gold-Platinum project on Ipun Island in Chile and another Gold-Platinum property on Chiloe Island in Chile with the same partner, Mr. Juan José Quijano Fernández. These agreements were previously covered by confidentiality terms.

Mr. Van Krikorian, Chairman and Chief Executive Officer of Global Gold Corp., stated, "We are delighted to be making this major of an expansion in Chile which includes the scheduling of gold production, and expanding gold and platinum exploration. We look forward to many years of successful partnership with the Quijano family and the communities where we will be working. We have had our own geologists oversee and review geophysical, sampling and drilling during our due diligence, and we are now looking forward to implementing our plans as quickly as feasible."

"This acquisition fulfils our mandate of transforming Global Gold into a premier mid-tier gold producer. The Valdivia acquisition, combined with the Estrella del Sur Gold-Platinum project and another Gold-Platinum property on Chiloe Island, offers shareholders exposure to year-round exploration activity on three excellent projects," concluded Mr. Krikorian.


The Chiloe Gold-Platinum Project is at an early stage of exploration. There are numerous mineral showings distributed over 16 separate beaches. The Property consists of 24 groups of mineral claims, covering a total area of approximately 5,900 ha on the island of Chiloe. A number of studies have been carried out to estimate the volume and grade of mineralization at Chiloe in the past. The total volume of the mineralized sands is also reported to be in the order of 200 million cubic metres with an average gold grade ranging from 0.4 g Au/m3 to 15 g Au/m3, and an average platinum grade ranging from 0.2 g Pt/m3 to 4 g Pt/m3. The grades for iridium and osmium are reported to be in the order of 6% and the amount of magnetite in the sands is reported to be in excess of 200 kg/tonne.

Key agreement terms for the Estrella del Sur and Chiloe projects required Global Gold to pay approximately $160,000 to cover government and license fees in exchange for an exclusive option until January 30, 2008 to review, explore, and form joint ventures on the properties. On or before January 31, 2008, at Global Gold's sole option, either or both of the properties shall be transferred to a new joint venture company (or two separate companies on the same terms). For both properties and in consideration for forming the joint venture, Global Gold shall pay 1,500,000 euros (or the Chilean peso equivalent) on the following schedule: 1. January 31, 2008, 250,000 euros; 2. July 31, 2008, 250,000 euros; 3. January 30, 2009, 500,000 euros; and 4. July 31, 2009, 500,000 euros.

Here is the full article.