Vancouver – After completing close to 70,000 metres of drilling over 160 core holes, Levon Resources (LVN-V) has released an initial bulk tonnage resource on its Cordero silver-gold-zinc-lead project in northern Mexico.
Using a US$6 per tonne net smelter return cut-off, a 1.7 to 1 strip ratio and open-pit geometry, the base case scenario establishes an indicated resource of 521.6 million tonnes grading 18.54 grams silver per tonne, 0.05 gram gold per tonne, 0.46% zinc and 0.36% lead. The inferred resource adds 200.9 million tonnes grading 21.66 grams silver, 0.04 gram gold, 0.49% zinc and 0.44% lead.
Those numbers work out to contained metal totals of 310.9 million oz. silver, 908,000 oz. gold, 5.3 billion lbs. zinc and 2.9 million lbs. lead in the indicated category, plus 139.9 million oz. silver, 229,000 oz. gold, 2.2 billion lbs. zinc and 1.2 billion lbs. lead in the inferred category.
Increasing the cut-off to US$15, the total indicated resource drops to 170.7 million tonnes grading 31.68 grams silver, 0.08 gram gold, 0.72% zinc and 0.58% lead. The inferred resource then comes in at 65.5 million tonnes grading 42 grams silver, 0.04 gram gold, 0.84% zinc and 0.76% lead.
Both scenarios used metal prices of US$25 per oz. silver, US$1200 per oz gold and US$1 per lb. for both lead and zinc.
The resource encompasses the Pozo de Plata Diatreme, the Josefina mine zone and the Cordero porphyry zone, but not the adjacent La Ceniza porphyry target where Levon is currently drilling several holes. The targets fall within the roughly 15 km long and 3 to 5 km wide Cordero Porphyry Belt.
The 200-sq.-km Cordero property, which fully encompasses the Cordero Belt, is located 35 km northeast of Hidalgo Del Parral in Mexico’s Chihuahua State. A highway runs 20 km from the project, high voltage power lines run within 5 km of the project, and water is available from wells and abandoned mine shafts.
The company is working through a 59,000-metre drill program, with roughly 15,000 metres left. Levon is conducting delineation drilling on the northeast end of the Cordero porphyry zone with one drill rig, while three others are being used on the adjacent La Ceniza porphyry target. Levon is drilling holes at La Ceniza over a km deep on a 200- to 400-metre grid spacing to test a donut shaped anomaly.
The Cordero technical report describes the area as containing elements of a high level intrusion-related hydrothermal system that is enriched in silver. Mineralization, mainly sphalerite and galena, occurs within a variety of daydream and hydrothermal breccias, in fractures which, in places have formed as poorly developed stockworks and as veins and veinlets. The report draws parallels to the geology and mineralization at Goldcorp‘s (G-T, GG-N) Penasquito deposits, 450 km south.
Levon has owned 100% of the Cordero property since it completed a merger with Valley High Ventures, which had controlled 49% of the project, at the end of March. Valley High shareholders received one Levon share plus 0.125 share of Bearing Resources (BRZ-V), a spin out containing Valley High’s other property holdings. After Levon issued 73.3 million shares to Valley High shareholders they held roughly 44% of the 163.9 million shares outstanding.
The combined company has, however, since raised $40.2 million through a bought deal financing at $1.95 per share.With the 20.6 million offering, plus an acceleration of warrants, Levon now has 196.7 million shares outstanding.
Levon’s share price climbed 10¢ or 5.9% to $1.79 on the day the resource was released. The company has a 52-week share price range between 50¢ and $2.38.