Levon Resources' (TSX: LVN) President Ron Tremblay discusses the company's Cordero property's Preliminary Economic Assessment with ResourceClips.

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A Taste For The Market
Levon Publishes a Mexico Silver-Gold-Base Metals Project PEA
~ By Ted Niles - February 22 2012
Levon Resources’ TSX:LVN preliminary economic estimate of its Cordero
project was originally intended for internal use only. President and CEO Ron 89.6 grams-per-tonne silver equivalent over 42 metres
Tremblay admits that normal procedure is to drill off the resource before 306.1 g/t AgEq over 8 metres
working on the economics, but Cordero is unusually large. He explains, 68.8 g/t AgEq over 132 metres
“We’ve just started our Phase 4, 130,000-metre drill program, so there’s 95.6 g/t AgEq over 42 metres
an awful lot more drilling to do before we’re ever going to be in a position 57.9 g/t AgEq over 62 metres
to actually figure out how big this thing is going to be. But we needed to 37.4 g/t AgEq over 136 metres
put something together to show the market, investors and institutions that, 57.8 g/t AgEq over 82 metres
yes, the economics are there, and this is what they look like for the first four 120.9 g/t AgEq over 108 metres
stages.” 74.5 g/t AgEq over 54 metres
137.9 g/t AgEq over 74 metres
353.2 g/t AgEq over 8 metres
Tremblay told ResourceClips.com in April 2011, “We’ve had over an
80%-success ratio on our drilling. You just don’t see that. And some of that
is drilling where we’re trying to delineate the zones. We think we’ve delin-
eated in one area, then we step-out another 100 metres, and all of a sud-
den you’re into it again.” The comparison has been made between Cordero
and Goldcorp’s aforementioned Peñasquito Mine but, Tremblay declares,
“Peñasquito had two mineralized intrusives. We’ve got six.”
The infrastructure is good. “We have power; we have water; we have a
good area for the tailings,” Tremblay reports. “We’re close to a good-sized
city, Parral, which is only 35 kilometres away, and we’re only 10 kilometres
off the main north-south highway. All the necessary ingredients to build a
The 20,000-hectare Cordero project is located on the Chihuahua side of the project without any extraordinary expenses.”
Chihuahua-Zacatecas Silver-Gold Belt in Mexico. The Belt hosts, among
others, Goldcorp’s TSX:G Peñasquito Mine and Camino Rojo projects, Levon will build the project, but it probably won’t take it to production. “We’re
as well as Silver Standard’s TSX:SSO Pitarilla and San Agustin projects. not a mining company; we’re an exploration company,” Tremblay declares.
Cordero has indicated resources of 310.87 million ounces silver, 908,000 “We’ve signed a number of confidentiality agreements, [so] all we can say is
ounces gold, 5.4 billion pounds zinc and 2.87 billion pounds lead and in- that we have quite a number of large companies that have a keen interest in
ferred resources of 139.9 million ounces silver, 229,000 ounces gold, 2.15 our project.”
billion pounds zinc and 1.21 billion pounds lead.
One such company might be Goldcorp, which acquired Canplats Resourc-
Levon’s January 30 PEA—which focuses only on the near-surface 30% of es and its Camino Rojo project—located on the same trend—in April 2010.
the resource—estimates a pretax net present value of $652.6 million at a
5% discount rate and an internal rate of return of 19.5%. Capital costs are With the company’s graduation to the TSX February 9, Tremblay is confident
projected to be $646.8 million, operating costs $13.82 per tonne, with a 5.5- the market will react favourably to the PEA. “If you look at the NPV for the
year base-case payback. Potential metal production over Cordero’s 15-year base case, after taxes you’re looking at about $5-per-share value, so obvi-
mine life is estimated at 131.16 million ounces silver, 190,000 ounces gold, ously we’re undervalued,” he concludes. “We’ve just put out the news, and
1.37 billion pounds zinc and 1.03 billion pounds lead. Tremblay comments, it takes the market and analysts time to digest this. They’ll start giving their
“We ended up working on a smaller pit design for the time being to give us opinion to the public, and we should start to grow.”
an idea of where we’re at in the first stages. Ultimately, we’ll be looking at a
much larger pit and a much larger mill, but we’re very happy with the way it’s At press time, Levon Resources had 198.8 million shares trading at $0.90
come together.” for a market cap of $179 million. The company’s other properties include the
“
Norma Sass property, as well as the Ruf and Eagle claims in Nevada and
Levon is in “good shape” financially, Tremblay reports. “We’ve got just over the Congress property and BRX/Wayside claims in BC.
$60 million in the bank. The Phase 4 program [is] a $25-million budgeted
program that will probably take us sometime into 2013.” The company
intends to update the Cordero resource “in the not too distant future” based Ultimately, we’ll be looking at a much larger pit and
on results received January 7 and again at the conclusion of the Phase a much larger mill, but we’re very happy with the
4 drill campaign. Two rigs are turning at the project, and a third has been way it’s come together
mobilized.
– Ron Tremblay
Results of the Phase 3 drill campaign released March 31 include:
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