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Levon Resources Ltd. (TSX: LVN; OTCQX: LVNVF): Indicated Resources of 488.5 M oz of Silver, 9.0 B lbs. of Zinc, 4.7 B lbs. of Lead, and 1.37 M oz of Gold; Interview with Ron Tremblay

on 3/26/2017
Levon Resources Ltd. (TSX: LVN; OTCQX: LVNVF) is a well-funded gold and precious metals company, exploring one of the world's largest silver resources at the company's 100%-owned, bulk tonnage, Cordero Project in northwest Mexico. Cordero hosts a world class Silver, Zinc, Lead, and Gold resource, with indicated resources of 488.5 million ounces of Silver, 9.0 billion pounds of Zinc, 4.7 billion pounds of Lead, and 1.37 million ounces of Gold. We learned from Ron Tremblay, President & CEO of Levon Resources, they have a fantastic huge open-pit project and are expecting to complete PEA this fall, which should show some very good economics on the project, with silver price on the upturn. According to Mr. Tremblay, for anybody that likes silver and zinc, they have a world class project in a great area of Mexico.

PDAC 2017: Ron Tremblay, President CEO of Levon Resources, Ltd.

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News, interviewing Ron Tremblay, President & CEO of Levon Resources, Ltd. At PDAC 2017. Ron, could you first give our readers/investors an overview of Levon?

Ron Tremblay: Sure. We've been working hard for many years on the Cordero project. We now have about a 1.2 billion oz silver equivalent resource. We have about five hundred million ounces of silver indicated, about nine billion pounds of zinc, about 4.7 billion pounds of lead, and 1.4 million ounces of gold. We've taken the project forward, and we are ready to do some more drilling to reduce the stripping ratio. We have a very good stripping ratio that we've published, about 1.2:1. But our engineers tell us with about another 25 holes, we should be able to convert some areas, currently being considered as waste due to lack of drilling, to resource in those areas. We know these areas are strongly mineralized and we believe we can potentially reduce the stripping ratio down to 0.8:1, which would be very good for the economics. The mineralization comes right to the surface. We have great metallurgy, and good recoveries, close to 90% on the silver.

The silver mostly reports to the lead concentrates. We will have two concentrates, a lead and a zinc con. We're looking at an open pit that's three kilometers long by about two and a half kilometers wide and up to a kilometer deep in the central area. We have drilled up to twelve hundred meters in some areas including the central portion. So we have a fantastic project. I think with the additional work we're going to do, and most likely going to a PEA this fall, we should be able to show a nice internal rate of return at $25 silver with probably a buck ten zinc, somewhere pushing 30% IRR. According to what our engineers are telling us, we’re going to see some very good economics on the project.

We just need to see the silver price move up a little more. It wants to go. We all think it's going to go. I think it's being heavily manipulated, and hopefully that's going to change one of these days soon, and when it does, we're sitting in a very good position. We have a huge call on silver. Silver equivalent resource of 1.2 billion ounces, so for anybody who likes silver, likes zinc, we have a word class project in a great area of Mexico. We have good infrastructure. We're about 35 kilometers from a major town with 125,000 people in it. It’s a historic mining town with lots of good experienced workers in an area with about 35 or 40% unemployment, so it's an excellent opportunity for the area, and an excellent project.

Dr. Allen Alper: Sounds great! Could you tell our readers/investors, refresh their memories on your background, your team and your board.

Ron Tremblay: Sure. I used to work at a prominent Canadian securities firm. I was a shareholder there for about twelve years, so my background is in mining finance and venture capital. We basically financed junior mining projects, mineral exploration projects. That's what we did for many years. We were one of the top mining finance firms. After that I took a little time off. I came back and decided to take over Levon from Lou Wolfin, who unfortunately just passed away.

I took the company over about ten years ago. At the time it had about a five million dollar market cap. Today it has about a $50 million market cap, and when things were rolling, we had about a $500 million dollar market cap. And we're well-funded as well. Yeah, we still have about 14 million in cash and marketable securities in the company. I think we'll get there again. It's just that we have had, as everybody knows, a very tough metals market for an extended period of time, which most people think is going to change soon.

Dr. Allen Alper: It sounds like you have a great project there, and well-funded as well. That's excellent. Would you like to say anything more about your plans?

Ron Tremblay: I think we're coming out with a PEA this fall that's going to really open up a lot of eyes.

Dr. Allen Alper: Could you just mention a bit about your share structure?

Ron Tremblay: We have 121 million shares out. About 131 million fully diluted. Half of the options are owned by me. I am the largest shareholder in the company. I own about 12 and a half million shares or about 10% of the company myself. We have a couple shareholders between us that probably own about 35% of the company, so it's well held by close associates and directors and insiders. We believe in what we're doing, and we're building a very robust company.

Dr. Allen Alper: It sounds like the management team believes in the company and has invested in the company, and that's great. What are the primary reasons our high-net-worth readers/investors should consider investing in Levon?

Ron Tremblay: If you were to compare Levon to the Bear Creek / Corani Project for example: They're looking at 150 million ounces of silver, we're looking at 500 million ounces of silver. Yes, they have a higher grade, but their metallurgy's not nearly as good as ours. They're getting like a 60% recovery. We're getting about a 90% recovery. They're stripping ratio is higher. They're looking at about 1.65:1, and we're looking at, we think about 0.8:1. Also, our location. We're located at fifteen hundred meters. They're located at sixty-one hundred meters in the middle of nowhere in the Andes, so for building a mine, for economics and everything else, they're looking at about a 19-20% IRR at $20 silver, I think we will be looking at probably closer to 25%. So yes, they may have a higher grade, but we have better economics, which we expect to be able to publish this fall. And they are trading at six times the market cap that we are. So there you go, we've got a lot of upside.

Dr. Allen Alper: Well, it sounds like a very compelling reason for our high-net-worth readers/investors to consider investing in your company.

Ron Tremblay: Thank you very much.

Greg Agar
Tel: 604.682.2991

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Vancouver, BC V6C 2X8
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