Levon Resources Ltd. (TSX:LVN) is a Canadian exploration company advancing the silver-gold-zinc-lead porphyry Cordero Project in the northwest state of Chihuahua, Mexico. Cordero is one of the world’s largest silver resources containing 364 million ounces of silver in the indicated category plus 91 million ounces of inferred silver.
In July 2013, Levon acquired the 16-hectare Aida Claim block giving the company 100% control of the Cordero Project.
Phase 4 continuation drilling is planned for the fall of 2013 to further increase the resource base at Cordero and improve the project economics. A second round of prefeasibility stage metallurgical testing is also underway to potentially improve recoveries and better optimize the mill plan. Phase 4 results will be used to develop an updated PEA and resource estimate at Cordero.
- July 2012 PEA shows initial favourable economics
- One of the world’s largest silver deposits: 364 million oz. silver (indicated), 91 million oz. silver (inferred) plus 945,000 oz of gold (indicated)
- Open to expansion on strike and at depth; drill target determination underway
- Aida Claim acquisition allows for potential increase of current resource estimate and improved mine economics
- $3 million Phase 4 continuation drill program planned for Fall 2013
- Well-funded with strong cash position: $46 million in the bank
- Strong, experienced management team
Cordero Project—Chihuahua, Mexico
The Cordero Project is located in the State of Chihuahua in north central Mexico 180 km south of the city of Chihuahua and 35 km northeast of the mining town of Hidalgo del Parral. The 20,000 hectare property is 100% owned by Levon Resources and is one of Mexico’s premier porphyry targets for silver, gold, zinc and lead.
Levon first began exploration at Cordero in February 2009. During that year, geological mapping defined the existence of two large scale belts of porphyry mineralization showings: the Porfido Norte Belt and the Cordero Belt. The Company’s subsequent exploration has focused mainly within the Cordero Project Porphyry Belt in a southern tier of the main claim block. Three bulk tonnage silver-gold-zinc-lead discoveries have been made and grid drilled in the central part of the Belt. The grid drilling confirms that the Pozo de Plata Diatreme, the Josefina Mine Zone and the Cordero Project Porphyry Zone discoveries merge into a single large scale bulk tonnage, mineral resource.
The July 2012 Resource Estimate at Cordero, based on drill work completed through April 2012, shows Indicated silver resources of 364 million ounces plus 91 million ounces of silver in the Inferred category, placing the project among the world’s largest known silver resources.
|Resource Class||Million Tonnes||Ag g/t||Au g/t||Pb %||Zn %|
The June 2012 Preliminary Economic Assessment (PEA), derived from just 30% of the outcropping resource, projects a pre-tax IRR of 19.5 % (at a silver price of $25.15/oz., gold price of $1,384.77/oz., zinc price of $0.91 per pound, and lead price of $0.96 per pound) over a projected 15 years of the initial first four stages of open pit production. The potential metal production over that time period is 131,156,000 ounces of silver, 190,000 ounces of gold, 1,373,359,000 pounds of zinc, and 1,033,407,000 pounds of lead. Mill feed production rates are estimated at 40,000 tpd. Capital costs are estimated to be $646,800,000, with operating costs estimated at $13.82 per tonne.
In July 2013, Levon purchased the strategically important Aida Claim (16 hectares), which occupies a key portion of the proposed open pit. According to the PEA, access to the Aida Claim would potentially expand the resource and improve the economics of the project.
The Cordero resource remains largely open to expansion through step out delineation and infill drilling around and beneath the modeled open pit. The Company has planned a 14,000 metre continuation of its current Phase 4 drill program to offset surrounding resource holes on the 100 metre resource drill grid. Drilling is planned to commence in mid-September 2013.
Phase 4 goals are to further increase the resource base, improve the project economics, and further advance engineering studies on water and power supplies. Prefeasibility scale metallurgical testing is also underway to better optimize the mill plan and improve costs. Phase 4 drill and study results will be used to create an updated PEA and resource estimate.
Levon Resources is advancing its 100% owned silver-gold-zinc-lead porphyry Cordero Project in the northwest state of Chihuahua, Mexico. The June 2012 Resource Estimate at Cordero shows Indicated silver resources of 364 million ounces plus 91 million ounces of silver in the Inferred category, placing the project among the world’s largest known silver resources.
The July 2012 PEA addresses the initial first four stages of mining on only 30% of the initial resource with a pre-tax IRR of 19.5 % over a projected 15 years with potential metal production of 131,156,000 ounces of silver (at a silver price of $25.15/oz). Capital costs are estimated to be $646,800,000, with operating costs estimated at $13.82 per tonne.
The PEA recommended gaining access to the Aida Claim, which would potentially expand the resource and improve the economics of the project. In July 2013, Levon purchased the 16-hectares claim block. Phase 4 continuation drilling will include the Aida claim and is planned for the fall of 2013. The goal is to further increase the resource base at Cordero and improve the project economics. A second round of prefeasibility stage metallurgical testing is also underway Phase 4 results will be used to develop an updated PEA and resource estimate at Cordero.
Ron Tremblay — President, Chief Executive Officer, and Director
Mr. Tremblay brings to Levon over 30 years’ experience in finance and management. In his five years as Levon’s President, he has raised approximately $80M for the company and advanced the Cordero project to its current world-class status. He has taken Levon from a market cap of $5m to over $100M (exceeding $400M in 2011) and guided the company through very difficult markets.
Ron Barbaro — Chairman and Director
Currently Chairman and Director of The Brick Group and Trans Global Life Insurance Company, Mr. Barbaro is a member of the Order of Ontario and has also received the “Business Excellence Award” from Toronto’s Italian Chamber of Commerce. He is also a member of the Toronto Roundtable, providing guidance to the Canadian Council on Learning and Canadian Foundation for Economic Education. Mr. Barbaro was awarded an honorary Doctorate of Humane Letters from Eastern College, Philadelphia. He is a former Director of The Prudential Insurance Company of America, the Ontario Lottery and Gaming Corporation and Thomson-Reuters.
Vic Chevillon, M.Sc., C.P.G. — VP of Exploration and Director
Mr. Chevillon is a consulting exploration geologist with 36 years of exploration experience working with major mining companies within the U.S. including Noranda, Homestake, Placer Dome and Barrick Gold. He has held key exploration roles in Placer Dome’s (Barrick) Gold Mines, Nevada, where he conducted a geologic assessment that lead to the Getchell Gold Mine acquisition. In addition, he directed the exploration assessment of the Bald Mountain Gold Mine, now being realized by Barrick Gold. Mr. Chevillon was also involved in the Noranda acquisition at New World, Montana and developed an exploration model at the Blackbird deposit, Idaho.
Carlos H. Fernandez Mazzi — Director
Mr. Fernandez Mazzi is currently the President and Chief Executive Officer of Dicon Gold Inc., a private gold exploration company based in Vancouver, Canada. His career spans over 20 years in international business, highlighted by his leadership as Chief Executive Officer of the Bolivian subsidiary of APEX Silver Mines where he led the strategy, financing and development of the San Cristobal project in Bolivia. With over $1 billion of investment, this 40 tpd project represented the largest mining investment in the country with substantial contributions to regional infrastructure, mining capacity and job creation.
Until recently, Mr. Fernandez Mazzi was Chief Executive Officer of the William J. Clinton Foundation’s Clinton Giustra Sustainable Growth Initiative, CGSGI, an initiative committed to narrowing the wealth gap in the developing world through market-driven projects. As part of his responsibilities, he spearheaded the launch of the ACCESO Fund LLC, a pioneer impact investment fund in Colombia.
Mr. Fernandez Mazzi received his MBA with Honours from the University of Notre Dame and holds a BS in Engineering with High Honours from the University of Arkansas as well as an SEP from the Stanford Graduate School of Business. Throughout his career Mr. Fernandez Mazzi held numerous leadership positions including President of the American Chamber of Commerce — AMCHAM in Bolivia, and served on numerous boards such as the Bolivian Business Council for Sustainable Development, the Bolivian Miner’s Association and the Private University of Bolivia UPB. He was appointed as Honorary Consul for Australia in Bolivia and was also invited as a member of the Latin American Business Council, CEAL.
Robert Roberts — Director
Mr. Roberts is a graduate of Osgoode Hall Law School (1986) and was called to the Alberta (1987) and Ontario (1988) bar. Mr. Roberts began his legal career in Calgary with a focus on natural resource transactions and in the fall of 1987 he joined the Toronto offices of Osler, Hoskin & Harcourt where he practiced corporate tax and finance law with an emphasis on mergers and acquisitions including many transactions in the natural resources sector. Mr. Roberts authored or co-authored many articles on corporate tax including an annual paper for the Canadian Tax Foundation on the tax aspects of takeover bids. In 1999 Mr. Roberts left the practice of law to pursue entrepreneurial opportunities in the retail sector. Mr. Roberts is Chief Executive Officer and co-owner of Channel Control Merchants, LLC (“CCM”) based in Hattiesburg, Mississippi. CCM is a retail services company specializing in providing brand control services to major retailers and is the market leader in North America in the management of retail insurance salvage claims, customer return programs for major retailers, and the export of brand sensitive inventories.
William C. Glasier — Director
Mr. Glasier was instrumental in development of the Bralorne Mine, particularly with regard to permitting. He provides financial and resource consulting for a number of public companies, and his primary expertise lies in finance and project management.
Gary Robertson — Director
A Certified Financial Planner, Mr. Robertson has worked in the financial industry for the past 20 years. He presently serves on the board of several private companies as well as on the board of six Canadian junior gold mining companies including Bralorne Gold Mines Ltd., Avino Silver & Gold Mines Ltd., Coral Gold Resources Ltd., Mill Bay Ventures Inc., and Sage Gold Inc.
Dorothy Chin — Corporate Secretary
Ms. Chin is a member of the Chartered Secretaries Canada, a Canadian Division of The Institute of Chartered Secretaries and Administrators (“ICSA”). She has more than 15 years experience in the mining and resource sectors, serving with public companies in regulatory compliance, governance, and administration of corporate affairs.
Annie Chan — Chief Financial Officer
Ms. Chan is a Chartered Accountant with significant experience working with public mining and resource-based companies. Before joining Levon, she was a consultant for two mining companies listed on the TSX providing financial reporting, regulatory compliance and advisory services. Ms. Chan has a public practice accounting background and worked as an assurance manager with a focus on the audit of public mining companies. She obtained her Bachelor of Commerce degree from the Sauder School of Business in the University of British Columbia.