Levon Resources Investor Presentation

14,558 views

Published on

Levon Resources is exploring one of the world's largest silver resources at the company's 100%-owned Cordero Project in northwest Mexico. In less than four years, Levon has amassed a resource at Cordero containing 364M oz silver indicated plus 91M oz silver inferred. Further indicated resources of 945,000 oz gold, 6.1B lbs zinc and 3.3B lbs lead have established Cordero as one of Mexico's premier polymetallic porphyry targets.

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
14,558
On SlideShare
0
From Embeds
0
Number of Embeds
13,973
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Levon Resources Investor Presentation

  1. 1. ONE OF THE WORLD’S LARGEST SILVER RESOURCES CORDERO PROJECT, MEXICO July 2013
  2. 2. SAFE HARBOUR DISCLAIMER Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations for future performance, are “forward-looking statements.” We caution you that such “forward looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Mr. Vic Chevillon, MSc, CPG, is the Qualified Person for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. 2
  3. 3. IN THIS PRESENTATION  WHO WE ARE  OUR VISION  SILVER: VITAL FOR INDUSTRY & TECHNOLOGY  KEY ASSET: CORDERO Ag/Au/Zn/Pb PROJECT  MEXICO: NO BETTER PLACE FOR MINING  OUR TEAM  SHARE DATA 3
  4. 4. WHO WE ARE  Discovered and then expanded the Cordero Ag, Au, Zn, Pb porphyry deposit into one of the world’s largest silver resources— 37 months from grassroots to major resource  Silver & Gold focused with Cordero project as key asset  Focused, aggressive exploration for additional world class discoveries  Part of Mexico’s economic revival 4  Canadian company trading on the TSX, symbol LVN  Debt-free & well funded for planned exploration.
  5. 5. OUR VISION  Building the premier mid-tier silver and gold exploration company in the world by advancing a portfolio of world class, quality discoveries toward production  Explore in the best global jurisdictions with safe title, excellent infrastructure and strong mining cultures for maximum stakeholder benefit and long term success 5
  6. 6. SILVER  One of the world’s most vital metals for industry and technology  Shrinking above-ground supplies  Increasing demand in both the industrial and investment sectors  High gold/silver ratio—currently above 50:1  Growing stream of new uses for silver—particularly in technology WE BELIEVE SILVER IS IN THE EARLY STAGES OF A LONG-TERM, UNPRECEDENTED BULL MARKET VITAL FOR INDUSTRY & TECHNOLOGY 6
  7. 7. KEY ASSET: CORDERO POLYMETALLIC PROJECT ONE OF MEXICO’S PREMIER PORPHYRY TARGETS HOST ROCKS, GEOLOGY, METAL ASSEMBLAGE AND SIZE ANALOGOUS WITH NEW WORLD-CLASS, BULK TONNAGE SILVER DEPOSITS IN MEXICO  Penasquito Mine, Goldcorp  Camino Rojo, Goldcorp  Pitarilla (no gold), Silver Standard 7
  8. 8. DEVELOPING A NEW PORPHYRY DISTRICT DISTRICT-SCALE DISCOVERIES ON 20,000 HECTARES  Two porphyry belts and a third mineralized volcanic centre to the south  Central discovery: ‒ Outcropping open pit resource ‒ Excellent conventional metallurgy  Outlying, drilled mineralization for future follow up and upside 8
  9. 9. CORDERO’S NI 43-101 RESOURCE Ag: 364M oz indicated, 91.2M oz inferred* Au: 945,000 oz indicated, 152,000 oz inferred* In less than four years, Levon recognized an Ag, Au, Zn, Pb porphyry system, drilled the discovery holes and defined the large resource:* NSR Cutoff $/t Resource Class Million Tonnes Ag g/t Au g/t Pb % Zn % 6.00 Indicated 547.70 20.67 0.054 0.27 0.51 Inferred 134.33 21.12 0.035 0.23 0.41 9 * Please see resource-related disclosure on the following slide. Resource is not drilled off and is open for expansion on strike and at depth
  10. 10. RESOURCE-RELATED DISCLOSURE CORDERO INDICATED & INFERRED RESOURCE 10  Resources are reported from the updated resource report: Cordero Project, June 2012 Mineral Resource Update, completed by Independent Mining Consultants (IMC) in collaboration with M3 Engineering and Technology (M3) of Tucson, AZ. The report was filed on August 02, 2012 and is available for viewing at www.sedar.com or at http://www.levon.com  The resource is within an open pit geometry generated by a floating cone algorithm using metal prices and recoveries of: Lead, $1.00/lb and 70% recovery; Zinc, $1.00/lb and 70% recovery; Silver, $25.00/oz with 60% recovery to a lead concentrate and 15% recovery to a zinc concentrate.  The Technical Report: Cordero Project, June 2012 Mineral Resource Update was authored and approved by Herbert E. Welhener, MMSA-QPM, SME Registered Member #3434330RM who is the Qualified Person for purposes of this Technical Report and the associated updated resource calculation. The following risk issues have been identified for the Cordero project:  Cordero as currently understood is a low grade, bulk tonnage deposit which will need favorable metal recoveries, metal prices and low operating costs to be developed.
  11. 11. PRELIMINARY ECONOMIC ASSESSMENT*  Preliminary Economic Assessment (PEA) base case projects a 14.80% Internal Rate of Return (IRR) based on a silver price of US$25.15 (IRR of 23.4% based on $US30.18 silver)*  15-year mine life to complete the first four stages of a planned eight-stage open pit*  40,000 tpd mill*  Payback in 5.1 years (3.8 years using US$30.18 silver)* BASED ON ONLY 30% OF THE OPEN PIT RESOURCE PEA SHOWS A 3.8-YEAR PAYBACK @ $30.18 SILVER 11 * See PEA-related disclosure on following slide. For scenarios based on other silver prices, please see Sensitivity Analysis on Slide #13.
  12. 12. PRELIMINARY ECONOMIC ASSESSMENT RELATED DISCLOSURE 12  A Preliminary Economic Assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.  The Technical Report: Cordero Project, Preliminary Economic Assessment was authored and approved by Herbert E. Welhener, MMSA-QPM, SME Registered Member #3434330RM who is the Qualified Person for purposes of this Preliminary Economic Assessment and the associated updated resource calculation.
  13. 13. INITIAL AFTER-TAX PEA SENSITIVITY ANALYSIS 13
  14. 14. PHASE 1 DISCOVERY HOLE C09-5 Analogous with Penasquito diatreme mineralization now being mined by Goldcorp 152M INTERSECTION GRADING:  80.6 g/T Silver  0.61 g/T Gold  1.41% Zinc  2.27% Lead TYPE 1 - POZO DE PLATA DIATREME DISCOVERY 14
  15. 15. TYPE 2 – POZO DE PLATA DIATREME BRECCIA REPLACEMENT MINERALIZATION 26M INTERSECTION GRADING:  410.1 g/t Ag  1.057 g/t Au  2.92% Zn  7.06% Pb Analogous with high grade underground ore at Penasquito 15
  16. 16. PORPHYRY STYLE MINERALIZATION  Mineralized Pervasive potassic alteration cut by incomplete pervasive phyllic alteration  Disseminated galena, sphalerite and pyrite  Below stockwork vein sphalerite, galena veins and crackle breccia  Analogous with porphyry feeder of Penasquito diatremes being mined TYPE 3 – CORDERO PORPHYRY ZONE 16
  17. 17. SCALE OF STAGE 8 MODELED OPEN PIT FIELD VIEW OF STAGE 8 MODELED OPEN PIT LOOKING NE  2.3 km wide (this NE view) x 3 km long (NE)  Resource blocks crop out = low waste-to-ore strip ratio of 1.7/1  Open to the south, north, northeast and at depth  Undrilled areas in 8 Stage open pit are modeled as unmineralized waste 17
  18. 18. WHAT’S NEXT AT CORDERO? PHASE 4 TARGETING PROJECT ECONOMICS FURTHER IMPROVE THE PROJECT’S ECONOMICS  Under the direction of M3 Engineering and Independent Mining Consultants  Expand mill design – targeting 80,000 tpd  Further engineering and metallurgy studies  Complete second round of metallurgical testing for stage 4 open pit of PEA 18
  19. 19. MEXICO: NO BETTER PLACE FOR MINING MANY COMPETITIVE ADVANTAGES WHY WE’RE MEXICO-FOCUSED  Political and financial stability  Safe title  100% foreign ownership of assets allowed  Easy and economical access from anywhere in North America  Modern and growing infrastructure for communications and transportation  An emerging economic powerhouse  Educated and skilled labor force  Strong historical and current mining culture 19
  20. 20. IN THE COMMUNITY  Levon relies on local ranchers, suppliers, contractors and service providers in nearby Hildalgo Del Parral  Parral is a rich source of skilled and dedicated labor  Good neighbor in the community 20
  21. 21. OUR TEAM Ron Tremblay, President/CEO and Director Ron Barbaro, Chairman and Director Vic Chevillon, M.Sc., C.P.G., V.P. Exploration and Director Carlos H. Fernandez Mazzi, Director/Head of Project Development Committee Annie Chan, CFO Gary Robertson, Director Rob Roberts, Director Dorothy Chin, Corporate Secretary Francisco Valencia, Senior Accountant Ron Tremblay and Vic Chevillon at Cordero 21
  22. 22. SHARE INFO AND SHARE PRICES Shares Outstanding 199,854,423 Options Outstanding 15,090,000 Average Weighted Price C$0.84 Fully Diluted 214,944,423 Recent Price C$0.32 52-Week Range C$0.72 – 0.28 Insiders own approximately 15% of fully diluted shares Key Shareholders  Newmont Mining  23 Institutional Shareholders 22
  23. 23. 23 900 – 570 Granville St Vancouver, BC V6C 3P1 604.682.3701 IR contact: 604.682.2991 IR@Levon.com LEVON.COM

×