RE: NewsLEVON REPORTS FIRST BULK TONNAGE NI 43-101 COMPLIANT RESOURCE AT ITS CORDERO PROJECT IN MEXICO
Levon Resources Ltd. ("Levon", or the "Company") (TSXV Symbol LVN)is pleased to report its first NI 43-101 compliant bulk tonnagemineral resource for the Company's wholly owned Cordero Project located35 km northeast of Hidalgo Del Parral, Chihuahua, Mexico.The resource was completed by Independent Mining Consultants (IMC) incollaboration with M3 Engineering and Technology (M3), both of Tucson, AZ.The mineral resource estimate is within an entire open pit geometry,with a preliminary waste to mineral resource strip ratio of 1.7:1 using abase case USD $6/tonne (T) net smelter return (NSR) cutoff. IMCestimates the mineral resource contains:
-An indicated resource of 521.6 million tonnes (MT) containing: 310.9million ounces (Moz) silver, 0.908 Moz gold, 5.3 billion pounds (Blbs)zinc, 2.9 Blbs lead.
- An inferred resource of 200.9 MT containing: 139.9 Moz silver, 0.229 Moz gold, 2.2 Blbs zinc, 1.2 Blbs lead.
Using a USD $15 NSR cutoff, a subset of the total Mineral Resource within the open pit geometry includes:
- An indicated resource of 170.7 MT containing: 173.9 Moz silver, 0.466 Moz gold, 2.7 Blbs zinc, 1.7 Blbs lead.
- An inferred resource of 65.5 MT containing: 88.4 Moz silver, 0.094 Moz Au, 1.2 Blbs zinc, 0.7 Blbs lead.
Table1 provides a summary of the mineral resource at various cutoffs. Themineral resource is based on the assays from 160 core holes as of June1, 2011. An ordinary kriged block model was developed from the drillhole assay data by IMC. The mineral resource is within a floating cone,open pit geometry. As reported previously (news release of January 13,2011), M3 has been retained by Levon to complete a preliminary economicassessment (PEA) in Q3, 2011. IMC and M3 drew on the initialmetallurgical bench scale test results, which have been completed forthe PEA, to calculate the NSR cutoffs (Table 1). The NSR values reflectthe value of the metals recovered after applying estimated milling andsmelting recoveries, transportation, smelting, and refining charges. Thebase case metal prices used for NSR values are USD $25 per ouncesilver, USD $1200 per ounce gold, USD $1.00 per pound zinc and USD $1.00per pound lead. The mill recoveries, metal distribution, smeltingcharges, and transportation charges used by IMC are conservativeestimates provided by M3 based on best available information, and theestimates will be refined and updated for the upcoming PEA.
Table 1: Cordero Mineral Resource; IMC ordinary kriged block model using core drilling through hole C11-160
Themineral resource (Table 1) includes the Pozo de Plata Diatreme, theJosefina Mine Zone, and the Cordero Porphyry Zone discoveries. Thethree discoveries remain open to expansion as Phase 3 delineation coredrilling continues.
Cordero Project Setting
TheCordero Project covers 20,000 hectares of contiguous mining claims.Cordero mineralization is a large scale Tertiary Ag, Au, Zn, Pb porphyryand diatreme mineralized system, cutting through Cretaceous limestonewithin a northeast trending belt of six volcanic centers. The tertiaryvolcanoes, diatreme complexes, subvolcanic intrusives, and associatedmineralized bodies are barely eroded or weathered. The CorderoPorphyry Belt is approximately 15 km long and 3 to 5 km wide. Themineral resource is hosted within three of the volcanic centers in thenorth central part of the Belt. Additional discovery potential existswith the extensions of the Mineral Resource (Table 1) and knownmineralized rocks, including mine scale targets being defined in each ofthe three remaining intrusive centers of the Belt.
"Discoveryof multiple bulk tonnage Ag, Au, Zn, Pb deposits that can be mined byopen pits has been the exploration focus and goal of Levon, since westarted 27 months ago" explains Vic Chevillon, VP Exploration andDirector. "We believe this first mineral resource is leading us to amajor new mining district in Mexico".
Drilling at Cordero to datetotals about 70,000 m in 168 core drill holes (four core holes inprogress). The drilling has been accomplished in three phases whichstarted in July, 2009 (news release of June 09, 2009). The current59,000 m Phase 3 core drilling program (budgeted at $14M, news releaseof September 30, 2011) began October 1, 2010 and has approximately15,000m remaining to be completed. Currently, one drill is within the CorderoPorphyry Zone on a 200 to 300 m discovery and step out delineationdrill grid. Three drills are within the newly recognized La CenizaPorphyry target zone, which is contiguous with, and northeast of, theCordero Porphyry Zone resource (Figure 1).
La Ceniza Porphyry Exploration
Figure 1.Map of the first Cordero mineral resource, the core holes in the model,the IMC modeled open pit and the La Ceniza Porphyry target with currentholes being drilled.
Coreholes in the La Ceniza Porphyry target are being drilled to depths of1,000+ m on a 200 to 400 m grid spacing, to test a donut shaped 40 msecIP chargeability anomaly within the La Ceniza Stock (Figure 1). The IPanomaly is 1,300 m in diameter and defined to depths of 500 m (depthlimits of the IP survey). All assay results from the La Ceniza targetholes are pending except for hole C11-115, which was reported previously(news release of March 31, 2011).
"With the first MineralResource completed and entirely open to expansion it now appears Phase 3drilling will move seamlessly into Phase 4, where we are currentlyplanning 130,000 m of core drilling to complete deposit delineation andexplore for additional discoveries in the Cordero Porphyry Belt. Phase 4which is fully funded, (news release of May 19, 2011) will also targeta second mineralized belt 10 km to the north (the Porfida Norte Belt),for similar bulk tonnage deposits. We are very pleased with theexploration successes at Cordero, and believe we are seeing thebeginnings of a large, new high quality mining district in Mexico"states Ron Tremblay, President and CEO.
QA/QC Procedures
Alldrill holes are started with HQ diameter core and then when necessary,reduced to NQ diameter core depending on drilling conditions. The drillcore is sawed through its' length, and samples collected in continuoustwo-metre intervals. All of the samples are prepared and analyzed by ALSChemex at its labs in Chihuahua, Mexico, and Vancouver, Canadarespectively. Gold analyses are being performed by 30-gram fire assaywith an atomic absorption finish. Silver, zinc and lead were analyzed aspart of a multi-element inductively coupled argon plasma ("ICP")package using a four-acid digestion with over-limit results beingreanalyzed with assay procedures using ICP-AES. The company employs arigorous quality assurance and quality control program that includestandardized material, blanks and core duplicates. AMEC Americas Ltd.,Vancouver has designed the QA/QC protocol from a study and review ofinformation provided to AMEC. IMC reviews the QA/QC data. ActLabs,Chihuahua and Vancouver is conducting referee lab replicate analyses onrepresentative samples as recommended by IMC.
The CorderoMineral Resource presented in this press release was prepared by HerbWelhener (SME registered member #3434330), Vice President of IndependentMining Consultants, Inc., who is a qualified person under NI 43-101.The supporting NI 43-101 mineral resource report is being prepared forpublication in August.
The project is under the directsupervision of Vic Chevillon, MA, C.P.G., Vice President of Explorationfor Levon who is a qualified person (AIPG C.P.G #11054) within thecontext of National Instrument 43-101 and has read and takesresponsibility for this News Release.
About Levon Resources Ltd.
Levonis a junior gold and precious metals exploration company exploring theCordero silver, gold, zinc and lead project near Hidalgo Del Parral,Chihuahua, Mexico. The Company also holds certain interests in threemineral properties located in British Columbia, Canada, namely theCongress property, the Goldbridge property (also known as the BRXclaims) and the Wayside claims, and three mineral properties located inNevada, U.S., namely the Eagle claims and the Norma Sass and Ruf claims.
For further information contact Levon Resources Ltd. at (604) 682-3701, or log onto our website at www.levon.com.
ON BEHALF OF THE BOARD
"Ron Tremblay"
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Ron Tremblay, President & Chief Executive Officer