Levon Resources Ltd. (TSX:LVN) (“Levon” or “the Company”) is pleased to announce the 2018 updated NI 43-101 mineral resource estimate and a 2018 Preliminary Economic Assessment (“PEA”) for the Cordero  silver, zinc, lead, and gold porphyry project,  located 35 kilometers northeast of Hidalgo Del Parral, Chihuahua State, Mexico.  Levon expects to continue its evaluation of the Cordero flagship project with the intent of advancing it to the prefeasibility or feasibility stage, and to seek a strategic partner. The timeline and estimated capital required to advance the project to the next stage are under review. The 2018 resource update includes the 2014 Cordero NI 43-101 resource (news release of October 20, 2014) and the results of 2017 infill resource drilling (news release of September 26, 2017).

Mineral resources as of February 12, 2018 for the Cordero project are summarized in Table 1 as follows:

Table 1 Cordero Project Mineral Resources (1)

Category Tonnes (000s) AgEq, g/t Ag, g/t Zn, % Pb, % Au, g/t
Indicated 990,054 31.92 12.81 0.37 0.17 0.04
Inferred 282,217 56.43 20.66 0.75 0.30 0.04
Contained Metal Oz (000s) Lbs (000s) Lbs (000s) Oz (000s)
Indicated 407,761 8,030,051 3,774,996 1,273
Inferred 187,461 4,665,047 1,859,799 363

 (1) Totals may not sum due to rounding.

  • The 2018 updated Cordero global resource (Table 1) reports indicated & inferred mineral resources of 1,272 million tonnes (t) at a silver equivalent (AgEq) grade of 37.4 g/t AgEq at a cutoff grade of 15 g/t AgEq using metal prices of $ 20/oz Ag, $1.20/lb zinc (Zn), $1.00 /lb lead (Pb) , and $1,250/oz gold (Au).
  • The 2018 resource includes 2017 drilling results and represents an increase of the indicated & inferred contained metal compared to the 2014 resource, of 12% Ag ounces, 37% Zn pounds, 10% Pb pounds and 13% Au ounces.

The Cordero resource is porphyry type mineralization hosted by four intrusive and volcanic centers within a central part the Cordero Porphyry Belt (the “Belt”).  The mineralization formed as the Belt was formed.  The resource is exposed at surface within a constructional volcanic topographic ridge that is still preserved.

The project is being evaluated in the context of Cordero PEA Highlights:

  1. A sub-set of the indicated and inferred mineral resource was used to develop an open pit mining plan at a rate of 40,000 tonnes of mill feed per day, with flotation processing to create high-quality lead and zinc concentrates.  This mining rate is identical to the mining rate in the 2013 PEA update (news release of May 15, 2013).  Mineral concentrates will be sold to offshore smelters.
  2. Average annual production of 8 million ounces of silver, 44,788 tonnes of zinc (99 million lbs) in concentrate, 31,158 tonnes of lead (69 million lbs) in concentrate and 11,900 ounces of gold.
  3. Economic analysis for the updated study are based on $20/oz silver, $1.30/lb zinc, $1.