Levon Resources Limited (TSX: LVN) in Position to Advance its World-Class Silver Project in Mexico with 1.2 Billion Ounces of Silver Equivalent in the Ground

By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 5/11/2016
Levon Resources Limited (TSX: LVN) is currently working on exploration and advancement of their silver project in Mexico that currently has 1.2 billion ounces of Silver equivalent in the ground. Levon’s resource is one of the largest undeveloped silver deposits in the world. Levon is debt free and well-funded.

Dr. Allen Alper, Editor-in-chief of Metals News interviewed Ron Tremblay, President and CEO of Levon Resource (TSX: LVN), on the Cordero silver project located in Mexico, with 1.2 billion ounces of Silver equivalent resources in the ground. Mr. Tremblay said, “I guess the important thing is that right now we have a very large resource, we are debt free, and we are well funded for what we need to do for the next few years. We have roughly $20 to $25 million dollars in cash and marketable securities in the treasury depending on what day it is, and depending on the price of our investments. We have approximately $3.5m still owed to us by the Mexican government in IVA tax refunds, we have received about a million and a half refunded over the last two years. So we are making progress on that front. Most people have a lot of trouble getting the funds, and it has required a huge effort from our team, but we have been able to get it done, and that’s important for the Company.” Dr. Allen Alper’s comment was, “That was excellent work.”

In addition to the ounces that they have already discovered at Cordero, the company will be doing additional exploration. Said Tremblay, We are planning to do some additional work done on the property to help us improve the grade. We are looking for where the hot spots are. So, for probably not too much money, in the range of $150,000 to $200,000, we are going to get a lot of data that will help us in future work. We want to do a little bit more drilling, a couple of fences of holes with tighter space drilling in a couple of spots to see what that does for us. We think that if we do some fifty meter spacing and maybe some twenty five meter spacing it could make as much as a 20 percent difference in the grade, because there is a nugget effect, and with wider space drilling we are not taking advantage of that. We think this will be very positive for the grade of the resource.”

Mr. Tremblay said, that the project is one of the largest undeveloped silver deposits in the world. He said, “The Cordero project is definitely one of the largest, if not the largest, undeveloped silver resource, definitely in Mexico and probably the world. We are looking at roughly somewhere in the neighborhood of 1.2 billion ounces of silver equivalent in an open pit configuration, and it comes right to the surface with a very low stripping ratio. So far, in the PEA, which is on only 30% of the resource, we are looking at a stripping ratio of 1.2 to 1. Now that we have acquired the last 16 hectare piece of land called the Aida claim, which ended up being in the middle of the resource; it allows us to mine the area from the center and work our way out. We drilled the claim and it added significantly to our resource. Instead of being able to mine only 30% of the resource, we can now mine 100% of the resource, which is very significant. It is very important that it has a low stripping ratio and that it goes right to the surface.”

The leadership of the company is what has made for their success, according to Mr. Tremblay. He said, “Our team is first class. We have Vic Chevillon who has worked 36 years with major mining companies, including Barrick. He discovered several mines and understands these types of deposits extremely well. Vic is responsible for defining this resource. The people that had it before completely overlooked the bulk tonnage potential of the property. We have Francisco Armenta who spent 47 years with Cyprus Anvil and knows every single resource in Mexico, he has a huge database of information. We have Dave Greenan who is an American geologist from Colorado, he is phenomenal and works well with Vic. We have a great team that understands deposits in Mexico and around the world. We are able to evaluate projects very quickly and effectively.”

Mr. Tremblay believes that the leadership, the project and funding are some of the things that make the company stand out to investors. We are well financed, with a great resource and a lot of insider investment. I am the largest shareholder with approximately 12.5% of the company and I am still increasing my position. The insiders own about 30% of the company and there is another 30% that is closely held.”

Mr. Tremblay said that the project’s upside will bring in shareholder value over the long term, especially when precious metals prices increase, and they are able to take the company to the next stage of development. He said, “We think it has tremendous upside as the price of silver and precious metals improves, we are well positioned. We are a huge, non-expiring call on Silver. We have had a lot of Major mining companies look at Cordero, and once metal prices improve we will be in a position to talk. We are well located, right off the main North South highway in Chihuahua State, and 15 minutes on a good gravel road. There is water, power, and lots of experienced labor close by in Hidalgo del Parral, an historic mining town that is similar to Timmons, Ontario. We have the support from the local and State government who want to get the project moving forward, but that will depend on the metal prices. In the meantime we are positioned and ready to move.”

Dr. Alper said, “Levon Resources is a very well-managed company, has an excellent technical team and excellent resources.”

http://www.levon.com/

Investor Relations
Greg Agar
ir@levon.com
Tel: 604.682.2991604.682.2991

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