Levon Resources Ltd.
TSX VENTURE : LVN
BERLIN : LO9
FRANKFURT : LO9

Levon Resources Ltd.

January 13, 2011 11:00 ET

Levon Phase 3 Drill Results Update: Cordero Porphry Zone and Pozo De Plata Diatreme Discoveries Expand and Remain Open

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 13, 2011) - Levon Resources Ltd. (Levon) (TSX VENTURE:LVN)(FRANKFURT:LO9)(BERLIN:LO9) is pleased to report the compiled assays from the first 30 core holes (15,787.6 m) of the ongoing Cordero Phase 3 drill program, which began October 1, 2010 (Table 1 compiled assays [results from 7 holes pending in the lab], Table 2 hole locations). The drill results expand both the Pozo de Plata Diatreme and Cordero Porphyry Zone bulk tonnage Ag, Au, Zn, Pb discoveries at the Cordero Project, located 35 km northeast of Hildalgo Del Parral in southern Chihuahua, Mexico. Both discoveries remain open to expansion as Phase 3 continues. Hole location maps, cross sections, core, project photos, and additional information are posted on the Levon website (www.levon.com).

Drilling

Cordero Porphyry Zone

Phase 3 core holes are being drilled in three 1.4 km long, north-south drill fences, in the Cordero Porphyry Zone to delineate the bulk tonnage mineralization and test it at depth. A recent highlight is the best of three broad, bulk tonnage intersections in core hole C10-87 (124 m grading 26.3 g/T Ag, 0.019 g/T Au, 0.77% Zn, 0.60% Pb (67.8 g/T Ag equivalent) Table 1). Hole C10-87 was a 150 m offset of holes C10-41 (170 m grading 17.33 g/T Ag, 0.03 g/T Au, 0.638 % Zn, 0.438 % Pb (62.9 g/T Ag equivalent) news release of June 1, 2010) and C10-72 intercepts (Table 1) The Porphyry zone remains open and requires continued step out drilling to delineate the mineralization.

The geology of mineralization is porphyry style in terms of its mode, geologic controls, associated alteration and zoning patterns. The zoning patterns are mapped across the NS drill sections in the core layout on the ground (arranged as the holes appear on the cross sections). Granodiorite porphyry is a common host rock. Mineralized granodiorite dikes cut mineralized rhyolite and dacite porphyries of the felsic volcanic dome complex, the alteration and mineralization patterns are helping guide the drilling. The assays (Table 1) continue to confirm that Ag and Au values are associated with logged argentiferous galena, which is commonly associated with sphalerite, and occasionally iron rich sphalerite (marmatite). 

Pozo de Plata Diatreme

Phase 3 offset drilling (typically 100 to 150 m hole spacing on a grid) N, SW, S and SE of the Pozo de Plata Diatreme Phase 2 drill grid, is compiled for 22 holes in Table 1. The drill results delimit the zone to the NW (holes C10-63, C10-65), but continue to expand the mineralized zone, particularly toward discovery intercepts drilled in Phase 2 within the Josefina Mine Zone located 500 m SE (Phase 2 hole C10-23 yielded several broad intercepts, the best of which is 116 m grading 49.7 g/T Ag, 0.10 g/T Au, 1.28 % Zn and 0.94% Pb, news release of May 13, 2010).

Pozo de Plata Diatreme mineralized geology and host rocks are complex with cross cutting relationships that document at least seven pulses of sphalerite and galena rich mineralization that range from pre diatreme breccia (shalerite, galena breccia clasts) to post diatreme breccia veins (diatreme breccia cut by massive sphalerite veins). Ag, Au, Zn, Pb grades in the current drill results (Table 1) are highest within and along the contact zones of particular rhyolite porphyry (and to a lessor extent, dacite porphyry) breccia dikes, which themselves have been incorporated into the diatreme breccias through entirely gradational contact zones. Assays (Table 1) continue to document that Ag and most Au values are associated with argentiferous galena commonly intergrown with sphalerite and some iron rich sphalerite (marmatite) and barite, calcite veins (particularly in the footwall of the diatreme breccia hosted mineralization). 

"Now that porphyry controls and associated alteration zoning have been recognized in the Cordero Porphyry target, we are attempting to use the porphyry style zoning patterns to guide the drilling toward the center of the mineralized system. This simple approach becomes complicated due to the presence of multiple episodes of alteration and mineralization and by the presence of composite, nested mineralized rhyolite and dacite stocks, and diatremes in the felsic volcanic dome complex. The mineralized dome rocks are cut by mineralized dikes of granodiorite porphyry at depth. The volcanic dome complex is mushroomed shaped and partly floored by Cretaceous limestone country rocks. Our drills are looking for the intrusive "stems" of the mushroomed intrusives, to test the sources of the bulk tonnage mineralization beneath the discoveries. The stems and their porphyry feeders may represent the ultimate upside of the mineralized system," comments Vic Cheviillon, VP Exploration, Director, Levon.

Table 1. Compiled Phase 3 core drill hole composites* (37 holes, 15,787.6 m total, 7 holes with assays pending). 

Hole   Zone   from (m)   to (m)   length (m)   Ag (g/T)   Au (g/T)   Zn %   Pb %   Ag Eq.(g/T)
C10-61   Pozo de Plata Diatreme   12   88   76   35.8   0.121   0.6   0.4   24.5
C10-61       112   124   12   21.1   0.038   0.2   0.2   33.9
C10-61       190   206   16   14   0.001   1.49   0.32   67.6
C10-62   Pozo de Plata Diatreme   228   254   26   130.7   0.026   0.39   0.21   149.9
C10-62       270   276   6   20.8   0.021   1.57   0.59   85.3
C10-62       286   310   24   23   0.025   0.79   0.73   68.9
C10-62       346   382   36   10.8   0.014   1.1   0.19   49.3
C10-63   Pozo de Plata Diatreme   No significant intervals
C10-64   Pozo de Plata Diatreme   226   272   47   21.8   0.018   1.72   0.45   86.6
C10-65   Pozo de Plata Diatreme   No significant intervals
C10-66   Cordero Porphyry   78   88   10   24   0.012   1.35   0.14   68.2
C10-66       254   260   6   732.9   0.042   6.44   1.08   955.3
C10-66       456   474   18   4.2   0.013   1.13   0.05   39.4
C10-67   Pozo de Plata Diatreme   4   12   8   42.6   0.04   0.12   0.31   57.9
C10-67       58   100   42   21.6   0.191   0.34   0.28   52.3
C10-67       138   150   12   26.4   0.081   0.98   0.43   73.1
C10-67       168   178   10   8   0.017   0.59   0.26   33.9
C10-68   Pozo de Plata Diatreme   218   232   14   9.6   0.011   1.13   0.31   52.6
C10-68       244   256   12   27.6   0.026   0.68   0.56   65.3
C10-68       314   332   18   39.9   0.026   2.4   0.41   123.9
C10-68       352   366   14   27.7   0.01   1.67   0.23   83.9
C10-69   Pozo de Plata Diatreme   No significant intervals
C10-70   Pozo de Plata Diatreme   56   86   30   23.3   0.107   0.28   0.22   45
C10-70       168   174   6   7.1   0.005   0.8   0.15   34.5
C10-70       182   194   12   8.1   -0.005   2.14   0.35   80.5
C10-71   Pozo de Plata Diatreme   2   6   4   367   0.254   0.03   1.07   416
C10-71       40   74   34   19.1   0.259   0.26   0.19   49.4
C10-72   Cordero Porphyry   166   216   50   25.1   0.014   0.68   0.61   63.6
C10-72       252   286   34   26.8   0.026   0.79   0.77   74
C10-72       380   394   14   19.3   0.028   0.63   0.43   52.2
C10-73   Cordero Porphyry   No significant intervals
C10-74   Pozo de Plata Diatreme   314   320   6   11.4   0.013   1.01   0.24   48.9
C10-75   Dos Mil Diez Diatreme   No significant intervals
C10-76   Dos Mil Diez Diatreme   No significant intervals
C10-77   Pozo de Plata Diatreme   4   14   10   25.5   0.035   0.24   0.15   39.4
C10-77       116   126   10   8.7   0.341   0.19   0.12   40.6
C10-77       436   450   14   21.1   0.008   2.46   0.59   110.6
C10-78   Pozo de Plata Diatreme   14   22   8   14.4   0.099   0.33   0.18   35.9
C10-78       30   40   10   16.3   0.062   0.11   0.1   26.6
C10-78       120   140   20   13.3   0.039   0.38   0.16   31.6
C10-78       322   330   8   2.1   0.009   1.15   0.05   37.9
C10-79   Pozo de Plata Diatreme   140   156   16   62.3   0.216   0.18   0.35   92.2
C10-79       172   198   26   63.3   0.271   0.52   0.9   123.1
C10-79       208   288   80   41.4   0.499   0.29   0.62   101.2
C10-79       300   310   10   25.2   0.138   0.43   0.4   58.6
C10-79       346   366   20   13.67   0.01   1.12   0.2   53.41
C10-80   Pozo de Plata Diatreme   176   198   22   10.7   0.048   0.55   0.21   36.2
C10-80       224   238   14   21.4   0.044   0.77   0.36   57.2
C10-80       284   324   40   12.3   0.009   1.62   0.26   67.8
C10-81   Pozo de Plata Diatreme   No significant intervals
C10-82   Pozo de Plata Diatreme   278   328   50   43.1   0.052   1.65   1.32   133.4
C10-83       180   224   44   40.1   0.57   0.22   0.54   100.2
C10-83       250   270   20   9.1   0.031   0.48   0.19   30.8
C10-84   Pozo de Plata Diatreme   178   224   46   34.7   0.01   2.23   0.57   117
C10-85   Pozo de Plata Diatreme   252   290   38   23.5   0.018   1.52   0.52   84.2
C10-86   Oesta Pozo de Plata   No significant intervals
C10-87   Cordero Porphyry   12   18   6   20.2   0.025   0.19   0.33   42.8
C10-87       44   60   16   26.3   0.012   0.8   0.45   63.6
C10-87       66   114   48   27.1   0.019   0.84   0.48   66.8
C10-87       128   252   124   26.4   0.019   0.77   0.6   67.8
C10-87       306   364   58   23.1   0.029   0.45   0.33   47.7
C10-87       524   536   12   14.8   0.018   0.26   0.23   30.2
C10-88   Josefina Zone   190   204   14   6.6   0.055   0.52   0.11   28.9
C10-89   Cordero Porphyry   No assays reported, hole lost at 23 m
C10-90   Porphyry Zone   Assays Pending
C10-91   Porphyry Zone   No significant intervals
C10-92-97   Porphyry Zone   Assays Pending
* Silver equivalent grade, based on assumed recoveries, is calculated using the following metal prices: silver at $15 per ounce, gold at $1,000 per ounce, zinc at 90 cents per pound, lead at 90 cents per pound and assumed recoveries (metallurgical and smelter deductions) of 70% for silver and gold and 50% for zinc and lead. Actual metal recoveries have not been determined. Summary assay intervals as reported above were selected based on a 22.64 g/T Ag equivalent cut-off over significant widths that by inspection show geochemical consistency down the hole among the 2 m sample intervals.

Table 2. Phase three drill hole locations (map projection UTM Nad 27 Conus, Zone 13, m)

HoleID   X   Y   Z   Length   Azimuth   Dip
C10-61   442596   3013904   1571   433.8   180   -60
C10-62   442774   3013965   1575   449   180   -60
C10-63   442498   3014249   1569   340.35   0   -60
C10-64   442799   3013818   1574   446   180   -60
C10-65   442500   3014247   1569   383.4   180   -60
C10-66   443618   3014008   1585   529   0   -90
C10-67   442504   3013901   1560   389.1   0   -90
C10-68   442799   3013816   1569   448   0   -90
C10-69   442700   3014400   1570   407.5   0   -60
C10-70   442400   3013800   1520   476.8   0   -60
C10-71   442400   3013800   1520   459.65   180   -60
C10-72   443394   3015092   1600   458.45   0   -90
C10-73   443620   3014009   1585   419.95   0   -60
C10-74   442706   3014502   1589   395.45   0   -60
C10-75   440698   3012700   1569   164.3   0   -90
C10-76   440698   3012700   1569   137.15   65   -60
C10-77   442700   3013847   1568   535.65   0   -60
C10-78   442402   3013798   1567   488.15   0   -90
C10-79   442702   3014496   1585   462.65   180   -60
C10-80   442700   3013847   1568   451.05   0   -90
C10-81   442900   3013795   1573   101.55   0   -60
C10-82   442901   3013814   1572   430   0   -60
C10-83   442600   3014400   1575   463.95   180   -60
C10-84   442699   3013847   1570   444.75   180   -60
C10-85   442903   3013818   1572   406.65   180   -60
C10-86   441750   3013420   1570   310.2   315   -60
C10-87   443300   3015000   1611   594.4   0   -90
C10-88   443300   3013900   1586   529.7   0   -60
C10-89   443700   3014500   1562   23.5   0   -90
C10-90   443700   3014450   1570   862.95   0   -90
C10-91   443618   3014110   1589   659.85   0   -90
C10-92   443522   3015101   1591   936.55   0   -90
C10-93   443296   3014998   1611   446.9   0   -60
C10-94   434549   3011002   1618   151   0   -90
C10-95   443304   3013901   1586   409.55   180   -60
C10-96   434650   3012050   1617   423   0   -90
C10-97   443299   3014994   1609   317.7   150   -60

Outlying Exploration Targets

The Phase 3 core drilling campaign (59,000 m planned, $14M program, news release of September 30, 2010) began October 1, 2010 starting with two core drills and expanded to four rigs to yield the 37 holes Phase 3 holes (15,787.6 m) drilled by December 18, 2010. Phase 3 has now been ramped up to 5 core drills turning 24 hours per day, 7 days per week by HD Drilling, Mazatlan, Mexico. Phase 3 involves offset grid drilling in the two discovery areas, and exploration drilling in outlying mine-scale target areas.

SJ Geophysics, Vancouver has completed about two thirds of a 3D induced polarization (IP) survey over the Molina de Viento, Dos Mil Diez, Pozo de Plata Diatreme Complexes, the Pastura Sur, and Cordero Porphyry Zone. The remaining IP survey is slated for completion over the La Ceniza Stock in January. Current IP results are being processed in 3D inversions, which will be integrated with the project data utilizing Gocad 3D pattern recognition software in the field for drill targeting. Initial 3D IP chargeability anomalies are defining drill targets, which are being drill tested, particularly in covered areas. Field follow up of recent IP results in a NW part of the Pozo de Plata Diatreme has defined a rhyolite breccia dike swarm with strong pyryite silica alteration on the surface, that is now being mapped, sampled and scheduled for drill testing at depth. Two holes have been drilled in covered chargeability anomalies in the Molina de Viento Caldera Diatreme Complex, 8 km SW of the Pozo de Plata Diatreme discovery grid within the Cordero Porphyry Belt (assays pending). 

Engineering Studies

Engineering studies toward producing a first 43-101 compliant mineral resource, and then a Preliminary Economic Assessment, have been initiated by IMC and M3 engineering firms in Tucson, who are well experienced with Penasquito type deposits. The initial petrographic metallurgical samples have been selected for collection, to help guide bench scale testing. The in house block model of Phase 2 drill results by IMC helps guide Phase 3 offset drilling, along with continued 3D geologic and alteration modeling.

"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," comments Ron Tremblay, President, CEO, Levon.

QA/QC Procedures and Reporting Parameters

All drill holes are started with HQ diameter core and then rarely reduced to NQ diameter core depending on drilling conditions. The drill core is sawed through its length and samples collected in continuous two-metre intervals. All drill intercepts reported (Table 1) are core lengths and not true widths, which are unknown. All of the samples are being prepared and analyzed by ALS Chemex at its labs in Chihuahua, Mexico, and Vancouver, Canada respectively. Gold analyses are being performed by 30-gram fire assay with an atomic absorption finish. Silver, zinc and lead were analyzed as part of a multi-element inductively coupled argon plasma ("ICP") package using a four-acid digestion with over-limit results being reanalyzed with assay procedures using ICP-AES. 

The company employs a rigorous quality assurance and quality control program that include standardized material, blanks and duplicates. AMEC Americas Ltd. has designed the QAQC protocol from a study and review of information provided by the Joint Venture to AMEC. Independent Mining Consultants (IMC), Tuscon, Arizona reviews QA/QC data. 

The project is under the direct supervision of Vic Chevillon, MA, CPG, Vice-President of Exploration for Levon Resources Ltd. ("Levon") who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release. 

The property comprises wholly-owned claims and consolidated land agreements that total about 20,000 hectares and is being explored in the Joint Venture by Levon and Valley High Ventures, Ltd. (VHV) wherein Levon is 51% owner and operator of the project and holds 49% in trust for VHV.

Corporate

Levon and Valley High Ventures, Ltd. have signed the definitive Cordero Joint Venture Agreement as of April 01, 2010 with the terms of the original letter of intent signed February 11, 2009. 

Levon has set up a wholly owned Mexican subsidiary, Administración de Proyectos Levon en México, S.A. de C.V. (Levon en Mexico) to conduct Cordero and other exploration activities in Mexico. Levon en Mexico is headquartered in Durango, Mexico with its main Cordero Project field office in the historical mining town of Hildalgo Del Parral. 

Levon is a junior gold and precious metals exploration company exploring the Cordero silver, gold, zinc and lead project near Hidalgo Del Parral, Chihuahua, Mexico. The Norma Sass and Ruf claims located near the Pipeline gold deposit, which is being mined and explored by Barrick Gold Corporation in the heart of the Cortez Gold Trend in Lander County, Nevada, USA. The Company also holds key land positions at Congress, BRX, and Wayside in the productive Bralorne Gold camp of British Columbia, Canada.

LEVON RESOURCES LTD.

Ron Tremblay, President and CEO

This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Levon Resources Ltd.
    (604) 682-3701
    (604) 682-3600 (FAX)
    www.levon.com