Levon Resources Ltd. (TSX:LVN) (“Levon” or “the Company”) is pleased to announce that it has filed a Canadian National Instrument (“NI”) 43-101 Technical Report dated effective March 1, 2018 on SEDAR at www.sedar.com. The Report is prepared by M3 Engineering & Technology (“M3”) in collaboration with Independent Mining Consultants (“IMC”) of Tucson, Arizona and provides the 2018 resource update (IMC) and a Preliminary Economic Assessment Update (“PEA Update”) (M3) for the Cordero Silver, Zinc, Lead, Gold Project in Chihuahua, Mexico; the results of which were announced in a March 5, 2018 news release.

Highlights of the PEA Update (United States dollars)

  • Mineral Resources Tabulated at 15.00 g/t AgEq (Silver Equivalent) Cutoff.

Cordero Project Mineral Resources

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

  • 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.
  • 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.
  • Economic analysis for the updated study are based on $20/oz silver, $1.30/lb zinc, $1.00 lead, and $1,300/oz gold.
  • The updated mine plan for the updated 2018 PEA, which is scheduled over a 29 year mine life includes total mineralized material of 417.5 million tonnes at a 46.5 g/t silver equivalent, producing concentrates containing a total of 231 million ounces silver, 2,863 million pounds of zinc, 1,992 million pounds of lead, and 0.35 million ounces of gold.
  • The waste to mill feed tonnage ratio is 0.98:1 since the resource crops out at the surface. The resource has not been drill delineated on its perimeter, and the modeled strip ratio includes undrilled areas in the modeled open pit as waste. The modeled open pit for the PEA measures –2000 m long x 1300 m wide x 380 maximum depth.
  • Metallurgy is simple (side by side lead and zinc conventional floatation mills) with 88% overall recoveries after three rounds of bench-scale testing.
  • Capital costs estimated at $570 million for initial project capital including mine, plant, TSF, and Owners Costs, and $271 million for sustaining capital over the mine life.
  • Average annual after-tax cash flow of $77.4 million over 29 years.