Levon Resources Ltd (New) V.LVN

RE: Jennings - $2.50 target

[nexuss24]

Hey, thanks North Tea for brining up the report.
The report is free by the way and all you need to do is sign up. I just did a quick read through and the target is based on their estimate of 129 m Oz of Ag. Furthermore, they also state that "RESOURCE ESTIMATE WILL BOOST VALUATION"



Exhibit 5: Levon - Value per Share
Length (m) 750 Width (m) 200 Thickness (m) 140 sg 2.7 T onnes 56,700,000
Ag grade (g/t) 45
Contained Ag million oz 82.3
Length (m) 300 Width (m) 300 Thickness (m) 150 sg 2.7 T onnes 36,450,000
Ag grade (g/t) 40
Contained Ag million oz 47.0
Project value at $3.50/oz Ag (million) $452.7 Fully diluted shares 186.8
Pozo de Plata
Porphyry
Value per share $2.42



We are initiating coverage on Levon Resources Ltd. with a BUY recommendation and C$2.50/share target price. It is too early to build a model for Cordero, so we are using an ounces-in-the-ground valuation for valuing the Cordero Project in Mexico. We ascribe US$3.50 per ounce (a 43% discount to the peer group valuation) to our estimated resource of 129 million oz of silver to arrive at our target price of C$2.50 per share.