Levon amends Cordero reports following BCSC review 2013-05-03 18:48 ET - News Release Mr. Ron Tremblay reports BRITISH COLUMBIA SECURITIES COMMISSION TECHNICAL DISCLOSURE REVIEW As a result of a review by the British Columbia Securities Commission (BCSC), Levon Resources Ltd. has issued the following news release to clarify its disclosure. Technical Report Issues Levon filed a July 31, 2012 technical report (the "July Report") prepared by Independent Mining Consultants, Inc. of Tucson, Arizona, and a March 12, 2012 technical report (the "PEA") prepared by M3 Engineering & Technology Corporation ("M3"). Both reports are in the process of being amended and revised versions are expected to be filed next week. The July Report The July Report contains statements that the author relied on Vic Chevillon, the Company's VP, Exploration for certain information respecting geology, background information and project history, and that the author relies on M3 for input on the NSR calculation. NI 43-101 does not allow reliance on others for these matters, and this language will be removed from the July Report. The July Report will also be amended to provide specific information on the author's reliance on the Mexican law firm of Pizarro Suarez & Rodriguez Matus for claims and land information. Statements disclaiming responsibility for the PEA will also be removed from the July Report. The July Report will also be revised to include the following prominent cautionary language required by sections 2.3(3)(a) and 3.4(e) of NI 43-101: The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The July Report will be further amended to remove the word "ore", which could be taken to imply economic viability and treat the quantities as reserves. The Company does not have any reserves at present. The preliminary economic assessment contained in the PEA represents the extent of the Company's current knowledge respecting the potential economic viability of the Cordero Project. A budget will be included in the revised July Report to provide particulars and a breakdown of costs for the work recommended in the report to further delineate the size and scope of mineralization at the Cordero Project. The PEA The PEA will be amended to remove language disclaiming responsibility for certain scientific information, and to add the following cautionary statement: This study has been performed to the level of a Preliminary Economic Assessment. The PEA is considered preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources that are not Mineral Reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration or Mineral Reserves once economic considerations are applied. Therefore there is no certainty that the production profile concluded in the PEA will be realized. When the amended PEA is filed, it will be accompanied by certificates of qualified persons (as such term is defined in NI 43-101) which reference all sections of the report. Currently, the certificate filed by one of the PEA authors did not reference certain sections of the report, which consequently were not covered by any qualified person's certificate. The new consents will also be revised to identify the news release that is supported by the PEA, and to confirm that the qualified person has read that document and that it fairly and accurately represents the information in the PEA or portion thereof for which the qualified person is responsible. Additional information will be added to Conrad Huss' certificate to demonstrate the relevant experience that qualifies him to act as a qualified person in respect of the PEA. Additional Technical Disclosure Issues The Company has removed a comparative chart from its investor relations materials which compared the resources of several companies, as the chart included inferred resources for all of the companies compared, which is not permitted under NI 43-101. Section 3.4 of NI 43-101 includes the requirement that where written disclosure of mineral resources is made respecting a property material to an issuer, the following information must be provided: the effective date of each estimate of mineral resources and mineral reserves; the key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves; (d) the identification of any known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources or mineral reserves; and (if the disclosure includes the results of an economic analysis of mineral resources, an equally prominent statement that mineral resources that are not mineral reserves do not have demonstrated economic viability. This information was missing from the Company's fact sheet and corporate presentation, which have been amended to include references to the July Report, where this information is provided. The July Report does not include the statement required by Section 3.4 (e), which will be added when the amended July Report is filed, as discussed above. Where the Company refers in its investor materials to the results of an economic evaluation including an NPV based in part on inferred resources, it has added a cautionary statement which is required by NI 43-101. Information in the Company's fact sheet which provided a favourable case from the PEA but did not balance this disclosure with the base case and an unfavorable case has been removed from the fact sheet, and readers have been referred to the disclosure in the PEA. The Company has also removed the term "mine scale targets" from its web page, as this could imply that a mine will be constructed on what are merely exploration targets. The Company has also added information on the identity and relationship to the Company of the qualified person who prepared or supervised the preparation of technical information disclosed in the materials on its web page. We seek Safe Harbor. |