Levon (TSX:LVN) Announces 848.5 Million Tonnes Grading 41.03 g/t Silver Equivalent Indicated Resource at Cordero...
...Calculated at $20 Per Ounce Silver, Including 488,494,796 Ounces Silver, 1,366,129 Ounces Gold, 9.0 Billion Pounds Zinc and 4.7 Billion Pounds Lead
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 3, 2014) - Levon Resources Ltd. (Levon or the Company) (TSX:LVN)(FRANKFURT:L09)(BERLIN:L09)(OTCQX:LVNVF) announces an updated resource estimate for the Company's 100% owned Cordero project located 35 kilometers northeast of Hildalgo Del Parral, Chihuahua, Mexico. The updated resource estimate reported in this news release is effective September 03, 2014, and takes into account all of the results of the Company's Phase 4 core drilling program completed to date.
The updated Cordero resource is constrained and tabulated within the geometry of a revised open pit, and includes an indicated resource containing 488,494,796 ounces (ozs) silver, 1,366,129 ozs gold, 9.0 billion pounds (B lbs) zinc and 4.7 B lbs lead in 848.5 million tonnes (M t) of material grading 41.03 silver equivalent grams per tonne (g/t) including 17.91 g/t silver, 0.05 g/t gold, 0. 479 percent (%) zinc, and 0.254 % lead, at a cut off grade of 15 g/t silver equivalent. The open pit resource geometry contains an additional inferred resource of 44,448,039 ozs silver, 84,746 ozs gold, 663,311 M lbs zinc, 396,532 M lbs lead within 92,158 million tonnes of material grading 31.4 g/t silver equivalent including 15.00 g/t silver, 0.029 g/t gold, 0.327 % zinc, and 0.195 % lead at a cut off grade of 15 g/t silver equivalent (Table 1). The open pit resource shell measures 2.5 kilometers by 1.6 kilometers and is 600 meters deep with a low overall strip ratio of 1.2:1 waste to mineralized material. A map and cross sections of the open pit may be viewed on Levon's website (www.levon.com).
A summary of the updated resource estimate is shown in Table 1. Resource grades are expressed as silver equivalents, which equate to projected recovered metals. Silver equivalent is calculated using the most recent metallurgical testing recoveries for each metal. The resource shell is defined based on the deductions for mining and operating costs per tonne, including estimated transportation and refining costs for each metal in a projected mill concentrate (Table 2). Silver equivalents are calculated at $20 / oz silver, $1250 / oz gold, 0.94 cents / lb zinc, and 0.95 cents / lb lead.
Table 1. Summary of the September 03, 2014 updated Cordero mineral resource.
Total Resource Contained Metal
Class
Cutoff
AgEq, g/t Tonnes
X1000
AgEq, g/t
Ag, g/t
Au, g/t
Zn, %
Pb, %
Ag oz
Au oz
Zn lbs
X1000
Pb lbs
X1000
Indicated 15 848,462 41.03 17.91 0.050 0.479 0.254 488,494,796 1,366,129 8,952,499 4,742,361
Inferred 15 92,158 31.39 15.00 0.029 0.327 0.195 44,448,039 84,746 663,311 396,532
Table 2. Silver equivalent calculation variables: metal prices, estimated recovery through a standard flotation mill with separate zinc and lead circuits, estimated away from property smelting and refining charges*.
Silver Equivalents Calculation Variables
% Metal Estimated smelter
Metal Metal Price Recovery and refining charges
Ag $ 20.00 85.0 $ 0.024/g
Au $ 1,250.00 18.0 $ 0.00/g
Zn $ 0.94 81.0 $ 0.32/lb
Pb $ 0.95 80.0 $ 0.42/lb
* Costs used to define the resource shell include $6.00/t process cost, $0.75/t G&A, $1.75/t mining cost and the estimated TCRC costs.
"We are pleased with the Company's progress at Cordero, which has advanced quickly from our original discovery in 2009 through four accelerated drill programs to reach the present resource estimate" states Ron Tremblay, President and CEO of Levon Resources Ltd. "The new resource estimate includes a 57% increase in the indicated silver resource over the Company's June 2012 resource estimate" ("Cordero Project June 2012 Mineral Resource Update" dated July 31, 2012 as amended May 10, 2013 prepared by Independent Mining Consultants, Inc. "IMC"). "The resource estimate includes data from holes in the Porphyry Zone and also the Phase 4 drill results from the Aida claim acquired in 2013, which consolidated 100% ownership of the district" (news release April 30, 2014). "The resource expansion across the claim confirms our projections. Owning the entire Cordero district with this large scale discovery is a major accomplishment for our team and Levon shareholders".
Resource Calculations
The Cordero updated resource estimate is tabulated within a revised open pit geometry and was developed from 244 drill holes encompassing 118,937 meters of core drilling, including the latest 41 holes (21,168 m) drilled at the Cordero Project since the Company's announcement of its previous resource estimate in June, 2012. The September 03, 2014 resource remains open to expansion through step out delineation and infill drilling, on strike and beneath the modeled open pit.
The updated Cordero resource estimate presented in this press release was prepared under the direction of Herb Welhner (SME registered member #3434330), Vice President of IMC, who is a qualified person under NI 43-101. IMC has utilized updated metal price projections, estimated metallurgical recoveries, production and processing cost estimates from M3 Engineering & Technology ("M3"), Tucson, Arizona. M3 has revised the prices and costs from their 2012 PEA study ("NI 43-101 Technical Report Preliminary Economic Assessment Chihuahua, Mexico", Issue Date: 8 May 2013, Effective Date: 12 March 2012) filed under Levon's profile at www.sedar.com) to include the recent pre-feasibility stage metallurgical results that improve metal recoveries (Table 2).
Levon expects to file a technical report with respect to the updated resource estimate within 45 days.
Vic Chevillon, Levon's Vice President and Director said "Cordero is a major discovery and a novel porphyry silver, gold, zinc, and lead type system from its alteration and metal zoning patterns. Additional upside potential exists proximal to the resource for contact replacement deposits, in areas yet to be delineated on the margins of the resource. There is also a younger porphyry controlled zinc system in the southwest, and younger porphyry copper and molybdenite mineralization in the northeast part of the resource that has been intersected in deep holes (1,200 m) beneath the presently modeled open pit. At this stage in the discovery, we are pursuing additional metallurgical test work within the new resource to further improve recoveries from early production benches and optimize a start -up operation."
Metallurgy
The latest metallurgical testing designed and managed by M3, and conducted by ALS Metallurgy, Vancouver, B.C., was a pre-feasibility scale study to optimize mill reagents in the modeled standard flotation mill. The mill has separate circuits for zinc and lead. The recoveries were improved over initial metallurgical testing, and gold is now included in the resource estimate.
Qualified Person
Vic Chevillon, AIPG QPG # 11054, the Company's VP, Exploration, Director and a qualified person as such term is defined in NI 43-101 of the Canadian Securities Administrators has reviewed and approved this news release.
Mr. Chevillon has verified the data disclosed in this news release and no limitations were imposed on his verification process. Other than as described below and in the Company's annual filings (which are available at www.sedar.com), there are no known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources at this point in time.
About Levon Resources
Levon is a well-funded gold and precious metals exploration Company, exploring the company's 100% owned flagship Cordero bulk tonnage silver, gold, zinc, and lead project near Hidalgo Del Parral, Chihuahua, Mexico.
For further information, contact the Company IR Direct at 604-682-2991604-682-2991, or main office number 604-682-3701604-682-3701.
ON BEHALF OF THE BOARD
Ron Tremblay, President and Chief Executive Officer
