Global Gold Corp and Consolidated Resources have signed a joint venture agreement to fund and expand production at the Toukhmanuk gold-silver open pit mine in Armenia and further exploration activities for gold and silver at both Toukhmanuk and Getik properties.

As part of the agreement, Consolidated Resources is providing $5m in funding over 12 months to support the development of the properties.

The Toukhmanuk mine has an Armenian government approved reserve of approximately 2.27 million ounces of gold and 6.9 million ounces of silver in C1, C2, and P1 categories.

The mine is currently producing gold and silver and the plant is in the process of upgrading to 300,000 tonnes of ore (15,000 ounces of gold) per year production during 2011 at an average cost of less $400/ounce, followed by a revised estimated industrial production level of about 1.5 million tonnes (77,000 ounces of gold) per year.

Two of the new mills are on site and will be installed and operational in the coming months with a third new mill and an expanded flotation circuit later in the year.

Upon completion of the $5m funding, the companies will contribute the properties to a new joint venture company under the parties’ control.