Friday 9th December 2016

Resource Clips


Posts tagged ‘Levon Resources Ltd (LVN)’

A Taste For The Market

February 22nd, 2012

Levon Publishes a Mexico Silver-Gold-Base Metals Project PEA

By Ted Niles

Levon Resources’ TSX:LVN preliminary economic estimate of its Cordero project was originally intended for internal use only. President and CEO Ron Tremblay admits that normal procedure is to drill off the resource before working on the economics, but Cordero is unusually large. He explains, “We’ve just started our Phase 4, 130,000-metre drill program, so there’s an awful lot more drilling to do before we’re ever going to be in a position to actually figure out how big this thing is going to be. But we needed to put something together to show the market, investors and institutions that, yes, the economics are there, and this is what they look like for the first four stages.”

The 20,000-hectare Cordero project is located on the Chihuahua side of the Chihuahua-Zacatecas Silver-Gold Belt in Mexico. The Belt hosts, among others, Goldcorp’s TSX:G Peñasquito Mine and Camino Rojo projects, as well as Silver Standard’s TSX:SSO Pitarilla and San Agustin projects. Cordero has indicated resources of 310.87 million ounces silver, 908,000 ounces gold, 5.4 billion pounds zinc and 2.87 billion pounds lead and inferred resources of 139.9 million ounces silver, 229,000 ounces gold, 2.15 billion pounds zinc and 1.21 billion pounds lead.

Levon Publishes a Mexico Silver-Gold-Base Metals Project PEA

Levon’s January 30 PEA—which focuses only on the near-surface 30% of the resource—estimates a pretax net present value of $652.6 million at a 5% discount rate and an internal rate of return of 19.5%. Capital costs are projected to be $646.8 million, operating costs $13.82 per tonne, with a 5.5-year base-case payback. Potential metal production over Cordero’s 15-year mine life is estimated at 131.16 million ounces silver, 190,000 ounces gold, 1.37 billion pounds zinc and 1.03 billion pounds lead. Tremblay comments, “We ended up working on a smaller pit design for the time being to give us an idea of where we’re at in the first stages. Ultimately, we’ll be looking at a much larger pit and a much larger mill, but we’re very happy with the way it’s come together.”

Levon is in “good shape” financially, Tremblay reports. “We’ve got just over $60 million in the bank. The Phase 4 program [is] a $25-million budgeted program that will probably take us sometime into 2013.” The company intends to update the Cordero resource “in the not too distant future” based on results received January 7 and again at the conclusion of the Phase 4 drill campaign. Two rigs are turning at the project, and a third has been mobilized.

Results of the Phase 3 drill campaign released March 31 include:

  • 89.6 grams-per-tonne silver equivalent over 42 metres
  • 306.1 g/t AgEq over 8 metres
  • 68.8 g/t AgEq over 132 metres
  • 95.6 g/t AgEq over 42 metres
  • 57.9 g/t AgEq over 62 metres
  • 37.4 g/t AgEq over 136 metres
  • 57.8 g/t AgEq over 82 metres
  • 120.9 g/t AgEq over 108 metres
  • 74.5 g/t AgEq over 54 metres
  • 137.9 g/t AgEq over 74 metres
  • 353.2 g/t AgEq over 8 metres

Tremblay told ResourceClips.com in April 2011, “We’ve had over an 80%-success ratio on our drilling. You just don’t see that. And some of that is drilling where we’re trying to delineate the zones. We think we’ve delineated in one area, then we step-out another 100 metres, and all of a sudden you’re into it again.” The comparison has been made between Cordero and Goldcorp’s aforementioned Peñasquito Mine but, Tremblay declares, “Peñasquito had two mineralized intrusives. We’ve got six.”

The infrastructure is good. “We have power; we have water; we have a good area for the tailings,” Tremblay reports. “We’re close to a good-sized city, Parral, which is only 35 kilometres away, and we’re only 10 kilometres off the main north-south highway. All the necessary ingredients to build a project without any extraordinary expenses.”

Ultimately, we’ll be looking at a much larger pit and a much larger mill, but we’re very happy with the way it’s come together —Ron Tremblay

Levon will build the project, but it probably won’t take it to production. “We’re not a mining company; we’re an exploration company,” Tremblay declares. “We’ve signed a number of confidentiality agreements, [so] all we can say is that we have quite a number of large companies that have a keen interest in our project.”

One such company might be Goldcorp, which acquired Canplats Resources and its Camino Rojo project—located on the same trend—in April 2010.

With the company’s graduation to the TSX February 9, Tremblay is confident the market will react favourably to the PEA. “If you look at the NPV for the base case, after taxes you’re looking at about $5-per-share value, so obviously we’re undervalued,” he concludes. “We’ve just put out the news, and it takes the market and analysts time to digest this. They’ll start giving their opinion to the public, and we should start to grow.”

At press time, Levon Resources had 198.8 million shares trading at $0.90 for a market cap of $179 million. The company’s other properties include the Norma Sass property, as well as the Ruf and Eagle claims in Nevada and the Congress property and BRX/Wayside claims in BC.

Levon President Ron Tremblay on Mexico PEA

January 31st, 2012

Resource Clips - essential news on junior gold mining and junior silver miningLevon Resources Ltd TSXV:LVN announced the completion of a preliminary economic assessment for its Cordero project in Chihuahua State, Mexico. The PEA projects a 15-year mine life for the first four stages of open-pit mining, with an internal rate of return of 19.5%. Capital costs are estimated at $646.8 million, operating costs at $13.82 per tonne, with a 5.5-year base-case payback. The estimate projects potential metal production over the 15 years of 131.16 million ounces silver, 190,000 ounces gold, 1.37 billion pounds of zinc and 1.03 billion pounds of lead. Cordero is calculated to have a pre-tax NPV of $652.6 million at a 5% discount rate.

The Cordero project has indicated resources of 164.8 million tonnes grading 22.55 g/t silver, 0.078 g/t gold, 0.41% zinc and 0.25% lead. It has inferred resources of 49 million tonnes grading 21.88 g/t silver, 0.037 g/t gold, 0.40% zinc and 0.29% lead.

President/CEO Ron Tremblay tells ResourceClips.com, “We started on the project three years ago. When we started, nobody had recognized the bulk-tonnage potential of the project. Vic Chevillon, my VP Exploration, had looked at projects like [Goldcorp's TSX:G] Peñasquito, so we recognized certain key rock types that the previous people never recognized. We started drilling, and of course we’ve come up with a rather large resource.

We have roads, transportation: anything that we need to build a mine is certainly there—Ron Tremblay

“The project is wide open—we haven’t finished drilling it off—and normally you would drill it off, then come up with the economics. But we felt we needed to start looking at them. Originally, we were just doing it for internal use, but the market was requesting it, so it became something that we would publish. So we ended up working on a smaller pit design for the time being to give us an idea of where we’re at in the first stages. We’ve just started our Phase 4, 130,000-metre drill program, so there’s an awful lot more drilling to do before we’re ever going to be in a position to actually figure out how big this thing is going to be. But we needed to put something together to show the market, investors and institutions that, yes, the economics are there, and this is what they look like for the first four stages. Ultimately, we’ll be looking at a much larger pit and a much larger mill, but we’re very happy with the way it’s come together.

“We should be having an updated resource calculation coming up in the not too distant future, which will give a better idea of where the latest round of drilling has taken us to,” Tremblay continues. “Bearing in mind that a lot of that drilling is delineation drilling—we’re trying to find the edges of the deposit—so obviously not a lot of the holes are going to hit. There will be some expansion, but we don’t know how much until we do it.

“We’re also working on the outlying exploration up in Porfida Norte—another belt 10 kilometres to the north. Some news on that should be coming out shortly. We also have the Perla area to the south. We’ve been doing some initial work down there with sampling, etc. There’s going to be more geophysics, more engineering, more drilling, and we’re just going to continue to build and expand the project.

“We’re not a mining company; we’re an exploration company. We believe that there will be enough interest out there, and certainly there has been so far. We’ve signed a number of confidentiality agreements, and all we can say is that we have quite a number of large companies that have a keen interest in our project. So we see the indications out there. We’re capable of bringing in the right people to continue to expand the project, but we don’t think ultimately that we’re going to be the ones running the mine. We think that it’s the type of thing that a major mining company probably might end up taking over.

“The infrastructure is fantastic. A lot of that will be in the PEA when it comes out—we have 45 days to have the actual document out. We have power; we have water; we have a good area for the tailings. We have roads, transportation: anything that we need to build a mine is certainly there. So from an infrastructure standpoint we’re in very good shape. We’re close to a good-sized city, Parral, which is only 35 kilometres away, and we’re only 10 kilometres off the main north-south highway. So we have good access, and we have all of the necessary ingredients to build a project without any extraordinary expenses.”

Levon is well-funded moving forward, Tremblay reports. “We’ve got just over $60 million in the bank. The program that we’re working on—the Phase 4 program—that’s a $25-million budgeted program that will probably take us sometime into 2013. So we’re in good shape. We’ve got lots of money for what we need to do, and I think we’ll be moving forward very nicely from here.

“If you look at the NPV for the base case, after taxes you’re looking at about $5 per share value, so obviously we’re undervalued,” Tremblay concludes. “We’ve just put out the news, and it takes the market and analysts time to digest this. They’ll start giving their opinion to the public, and we should start to grow. Also, we’re expecting to be upgrading our listing to the senior board—probably within two weeks. All these things will help us.”

View Company Profile

Contact:
Ron Tremblay
President/CEO
604.682.3701

by Ted Niles

Levon Resources issues Mexico PEA

January 30th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningLevon Resources Ltd TSXV:LVN announced the completion of a preliminary economic assessment for its Cordero project in Chihuahua State, Mexico. The PEA projects a 15-year mine life for the first four stages of open-pit mining, with an internal rate of return of 19.5%. Capital costs are estimated at $646.8 million, operating costs at $13.82 per tonne, with a 5.5-year base-case payback. The estimate projects potential metal production over the 15 years of 131.16 million ounces silver, 190,000 ounces gold, 1.37 billion pounds of zinc and 1.03 billion pounds of lead. Cordero is calculated to have a pre-tax NPV of $652.6 million at a 5% discount rate.

The Cordero project has indicated resources of 164.8 million tonnes grading 22.55 g/t silver, 0.078 g/t gold, 0.41% zinc and 0.25% lead. It has inferred resources of 49 million tonnes grading 21.88 g/t silver, 0.037 g/t gold, 0.40% zinc and 0.29% lead.

President/CEO Ron Tremblay tells ResourceClips.com, “We started on the project three years ago. When we started, nobody had recognized the bulk-tonnage potential of the project. Vic Chevillon, my VP Exploration, had looked at projects like [Goldcorp's TSX:G] Peñasquito, so we recognized certain key rock types that the previous people never recognized. We started drilling, and of course we’ve come up with a rather large resource.

We have roads, transportation: anything that we need to build a mine is certainly there—Ron Tremblay

“The project is wide open—we haven’t finished drilling it off—and normally you would drill it off, then come up with the economics. But we felt we needed to start looking at them. Originally, we were just doing it for internal use, but the market was requesting it, so it became something that we would publish. So we ended up working on a smaller pit design for the time being to give us an idea of where we’re at in the first stages. We’ve just started our Phase 4, 130,000-metre drill program, so there’s an awful lot more drilling to do before we’re ever going to be in a position to actually figure out how big this thing is going to be. But we needed to put something together to show the market, investors and institutions that, yes, the economics are there, and this is what they look like for the first four stages. Ultimately, we’ll be looking at a much larger pit and a much larger mill, but we’re very happy with the way it’s come together.

“We should be having an updated resource calculation coming up in the not too distant future, which will give a better idea of where the latest round of drilling has taken us to,” Tremblay continues. “Bearing in mind that a lot of that drilling is delineation drilling—we’re trying to find the edges of the deposit—so obviously not a lot of the holes are going to hit. There will be some expansion, but we don’t know how much until we do it.

“We’re also working on the outlying exploration up in Porfida Norte—another belt 10 kilometres to the north. Some news on that should be coming out shortly. We also have the Perla area to the south. We’ve been doing some initial work down there with sampling, etc. There’s going to be more geophysics, more engineering, more drilling, and we’re just going to continue to build and expand the project.

“We’re not a mining company; we’re an exploration company. We believe that there will be enough interest out there, and certainly there has been so far. We’ve signed a number of confidentiality agreements, and all we can say is that we have quite a number of large companies that have a keen interest in our project. So we see the indications out there. We’re capable of bringing in the right people to continue to expand the project, but we don’t think ultimately that we’re going to be the ones running the mine. We think that it’s the type of thing that a major mining company probably might end up taking over.

“The infrastructure is fantastic. A lot of that will be in the PEA when it comes out—we have 45 days to have the actual document out. We have power; we have water; we have a good area for the tailings. We have roads, transportation: anything that we need to build a mine is certainly there. So from an infrastructure standpoint we’re in very good shape. We’re close to a good-sized city, Parral, which is only 35 kilometres away, and we’re only 10 kilometres off the main north-south highway. So we have good access, and we have all of the necessary ingredients to build a project without any extraordinary expenses.”

Levon is well-funded moving forward, Tremblay reports. “We’ve got just over $60 million in the bank. The program that we’re working on—the Phase 4 program—that’s a $25-million budgeted program that will probably take us sometime into 2013. So we’re in good shape. We’ve got lots of money for what we need to do, and I think we’ll be moving forward very nicely from here.

“If you look at the NPV for the base case, after taxes you’re looking at about $5 per share value, so obviously we’re undervalued,” Tremblay concludes. “We’ve just put out the news, and it takes the market and analysts time to digest this. They’ll start giving their opinion to the public, and we should start to grow. Also, we’re expecting to be upgrading our listing to the senior board—probably within two weeks. All these things will help us.”

View Company Profile

Contact:
Ron Tremblay
President/CEO
604.682.3701

by Ted Niles

Levon President Ron Tremblay on Mexico gold assays of 49.4 g/t over 112m

April 4th, 2011

“The Cordero Project is a silver-gold-lead-zinc project with a lot of similarities to Peñasquito—Goldcorp’s big mine. It has the same metal assemblage and the grades are similar or greater. The value of the rock is probably the same or better. We do have some good intercepts with gold but we haven’t gotten into the real big gold yet. But that doesn’t mean it’s not there.

“We have a mineralized belt that’s actually a district as opposed to just one deposit-type system. We have six mineralized intrusive centres so far that we’ve identified—that cover an area of about 15 kilometres by 3.5 kilometres—and it’s wide open. The areas where we’re drilling are the Pozo de Plata, the Josefina Zone and the Porphyry Zone, and it looks like all three zones hook-up all around the southern part of the Cordero Dome. It starts on the west side of the Dome and goes down around the south side, then back up the east side—we haven’t done as much work on the north part yet. Except the Pozo de Plata to the east, all of these are wide open in every direction and at depth.

“We’re getting a 43-101 resource done by IMC Engineering who did the work with M3 Engineering on Peñasquito. So they’re very familiar with these types of deposits and are experts in this area. They’ll only take on a project that they feel has a high degree of success and is large. We expect the 43-101 sometime in Q2, probably in May. On the back of that, we’re looking at a preliminary economic assessment out of M3, which we expect around August.

“Our plans for the year are to finish our Phase 3, which we’re about two thirds of the way through. We’ve got roughly 20,000 metres left in Phase 3. Also to complete the 43-101, the PEA, and plan for Phase 4 drilling if we make it that far.

“We’re very pleased with our results. We’ve had about over an 80% success ratio on our drilling. You just don’t see that. I think we’ve got about 157 holes drilled so far, and of those we had maybe 15 or 18 with not a lot of significant results in them. And some of that is drilling where we’re trying to delineate the zones. We think we’ve delineated in one area, then we step-out another 100 metres and all of a sudden you’re into it again! That happened to us in the northwest portion of the Pozo de Plata.

“We do not intend to take the project to production. We’re an exploration company. Right now we have five major mining companies that are signing CA’s and probably more are on the way. There’s a lot of interest and a lot of buzz around the project. And it’s a project for a major mining company, without a doubt. It’s a very well set-up land package. We have over 20,000 hectares. It’s a real prime plum of a property of the type that major mining companies are looking for. So we think that’s what probably will happen. That’s what’s happened to a lot of other companies recently, like Canplats Resources—which was a much smaller system. They had one mineralized intrusive—we’ve got six! Peñasquito had two mineralized intrusives. We’ve got six!

“It’s a very big, very strong system. Well mineralized and we think it’s gonna be a large system. It already is turning out to be one. We have a tremendous number of targets that we haven’t even tested yet. We have a lot of work ahead of us. So it’s a very exciting project.”

View Press Release Summary

View Company Profile

Levon reports Mexico Assays including 49 g/t Silver over 112m

April 1st, 2011

Levon Resources Ltd TSXV:LVN announced drill results from its Cordero Project in Chihuahua State, Mexico. Highlights include 30.7 g/t silver over 126 metres, 72.1 g/t over 38 metres, 160.1 g/t over 30 metres, 34.8 g/t over 148 metres, 49.4 g/t over 112 metres, 41.9 g/t over 42 metres, 160.9 g/t over 8 metres, 38.7 g/t over 132 metres, 49.9 g/t over 42 metres, 44.9 g/t over 108 metres, 36.1 g/t over 54 metres, 52 g/t over 74 metres and 145.9 g/t over 8 metres.

President/CEO Ron Tremblay tells ResourceClips.com, “The Cordero Project is a silver-gold-lead-zinc project with a lot of similarities to Peñasquito—Goldcorp’s big mine. It has the same metal assemblage and the grades are similar or greater. The value of the rock is probably the same or better. We do have some good intercepts with gold but we haven’t gotten into the real big gold yet. But that doesn’t mean it’s not there.

“We have a mineralized belt that’s actually a district as opposed to just one deposit-type system. We have six mineralized intrusive centres so far that we’ve identified—that cover an area of about 15 kilometres by 3.5 kilometres—and it’s wide open. The areas where we’re drilling are the Pozo de Plata, the Josefina Zone and the Porphyry Zone, and it looks like all three zones hook-up all around the southern part of the Cordero Dome. It starts on the west side of the Dome and goes down around the south side, then back up the east side—we haven’t done as much work on the north part yet. Except the Pozo de Plata to the east, all of these are wide open in every direction and at depth.

“We’re getting a 43-101 resource done by IMC Engineering who did the work with M3 Engineering on Peñasquito,” continues Tremblay. “So they’re very familiar with these types of deposits and are experts in this area. They’ll only take on a project that they feel has a high degree of success and is large. We expect the 43-101 sometime in Q2, probably in May. On the back of that, we’re looking at a preliminary economic assessment out of M3, which we expect around August.

“Our plans for the year are to finish our Phase 3, which we’re about two thirds of the way through. We’ve got roughly 20,000 metres left in Phase 3. Also to complete the 43-101, the PEA, and plan for Phase 4 drilling if we make it that far.

“We’re very pleased with our results. We’ve had about over an 80% success ratio on our drilling. You just don’t see that. I think we’ve got about 157 holes drilled so far, and of those we had maybe 15 or 18 with not a lot of significant results in them. And some of that is drilling where we’re trying to delineate the zones. We think we’ve delineated in one area, then we step-out another 100 metres and all of a sudden you’re into it again! That happened to us in the northwest portion of the Pozo de Plata.

“We do not intend to take the project to production. We’re an exploration company. Right now we have five major mining companies that are signing CA’s and probably more are on the way. There’s a lot of interest and a lot of buzz around the project. And it’s a project for a major mining company, without a doubt. It’s a very well set-up land package. We have over 20,000 hectares. It’s a real prime plum of a property of the type that major mining companies are looking for. So we think that’s what probably will happen. That’s what’s happened to a lot of other companies recently, like Canplats Resources—which was a much smaller system. They had one mineralized intrusive—we’ve got six! Peñasquito had two mineralized intrusives. We’ve got six!

“It’s a very big, very strong system,” Tremblay concludes. “Well mineralized and we think it’s gonna be a large system. It already is turning out to be one. We have a tremendous number of targets that we haven’t even tested yet. We have a lot of work ahead of us. So it’s a very exciting project.”

View Company Profile

Contact:
Ron Tremblay
President/CEO
604.682.3701

by Ted Niles

Levon, Valley High report Mexico assays of 97.2 g/t silver, 3.2% zinc over 50m

March 18th, 2011

Levon Resources Ltd TSXV:LVN in joint venture with Valley High Ventures Ltd TSXV:VHV announced assays from the Cordero Project in Chihuahua State, Mexico. Results include 26.1 g/t silver over 20 metres, 51.7 g/t silver and 3.25% zinc over 8 metres, 31.9 g/t silver over 20 metres, 97.2 g/t silver and 3.24% zinc over 50 metres, 41.6 g/t silver and 1.34% zinc over 14 metres, 244.4 g/t silver and 4.72% zinc over 6 metres, 42 g/t silver over 36 metres, 29.6 g/t silver over 46 metres, 33.9 g/t silver and 1.93% zinc over 14 metres, 29.1 g/t silver and 1.38% zinc over 84 metres, and 22.9 g/t silver over 122 metres.

Levon is the project operator and has a 51% interest in the Cordero Project. Levon has entered into an arrangement whereby it will acquire all outstanding shares of Valley High and own the full interest in Cordero.

View Company Profile

Contact:
Levon Resources Ltd
Ron Tremblay
President/CEO
604.682.3701

or Valley High Ventures Ltd
Geoff Chater
President
604.614.7830

by Ted Niles

Levon Resources to acquire Valley High Ventures

January 17th, 2011

Levon Resources Ltd LVN:CA and Valley High Ventures Ltd VHV:CA announced that they have entered into an agreement whereby Levon will acquire all of the outstanding shares of Valley High. Under the plan of arrangement Valley High shareholders will receive one share of Levon and 0.125 of a share in a new exploration company, SpinCo, for each Valley High share. On completion of the transaction, Valley High shareholders will hold approximately 43% and Levon shareholders 57% of the outstanding shares of Levon on a fully-diluted basis. Valley High shareholders will own 100% of the SpinCo shares and SpinCo will own all of Valley High’s exploration assets outside of the Cordero Project and will have $1.8 million in cash.

Levon President/CEO Ron Tremblay stated, “This acquisition consolidates ownership of our flagship Cordero Project and creates a dominant position in the Cordero Porphyry Belt. This is a strategic combination that will enhance long-term shareholder value and consolidate ownership of the Cordero Project in Mexico into one public company. We will continue to aggressively pursue exploration on the property and target completing a 43-101 resource estimate in Q2 2011 and a preliminary economic assessment by Q3 2011. The transaction leaves Levon well funded to complete the 59,000 metre Phase 3 drill program. We look forward to having the Valley High shareholders in Levon.”

View Company Profile

Contact:
Levon Resources
604.682.3701

or Valley High Ventures Ltd
604.614.7830

by Ted Niles

Levon reports Mexico Silver Assays as high as 149.9 g/t over 26m

January 14th, 2011

Levon Resources Ltd LVN:CA in joint venture with Valley High Ventures Ltd VHV:CA announced results from its Cordero Project in southern Chihuahua State, Mexico. Assays include 149.9 g/t silver over 26 metres, 68.9 g/t over 24 metres, 86.6 g/t over 47 metres, 955.3 g/t over 6 metres, 52.3 g/t over 42 metres, 123.9 g/t over 18 metres, 83.9 g/t over 14 metres, 416 g/t over 4 metres, 63.6 g/t over 50 metres, 123.1 g/t over 26 metres, 101.2 g/t over 80 metres, 133.4 g/t over 50 metres, 117 g/t over 16 metres and 67.8 g/t over 124 metres. Levon is 51% owner and operator of the project and holds 49% in trust for Valley High.

Levon President/CEO Ron Tremblay stated, “The early Phase 3 results so far are opening up rather than closing off the discoveries, and they require continued offset and delineation drilling. This is exactly why we have ramped up the drilling program. We are trying to realize the Cordero upside as soon as we can, and at the same time advance the discoveries toward the feasibility study stage. We believe our Cordero exploration results over the last 23 months continue to point to a major new bulk tonnage district in Mexico. We are pleased and see a bright future for our shareholders.”

View Company Profile

Contact:
Levon Resources Ltd
604.682.3701

by Ted Niles