EXCERPT
Resource Stock Update V20 #6.1 EUO, LVN, MTH, ALP, UNG May 3 2014
Ron Struthers 2772 Henderson Rd., RR#1 Arden Ontario K0H 1B0
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Levon Resources TSXV:LVN OTC: LVNVF Recent Price $0.25
Entry Price $0.25 Opinion - buy
This past Wednesday, Levon released final drill hole assays from the phase 4 drilling completed Feb.13, 2014, on the recently acquired Aida claim at the Cordero project, Chihuahua, Mexico. Twenty-four core holes for 13,072 metres were drilled on a 100 m to 150 m line spacing drill grid, testing the Aida claim, which is located in the centre of the Cordero resource.
This claim is going to add significantly to the overall resource and appears to be the heart or best part of the system with some higher grades that could dramatically improve mining costs and open pit parameters. I thought the stock would have moved up on the news, but at least it did not go down on news which was common with junior miners last year
The results from the remaining 10 holes confirm mineralization extends from surface and to depths of 700 to plus-1,000, revealing wide, higher-grade mineralization within volcanic feeders beneath the Cordero felsic volcanic dome complex. The drill results establish that the dome is mushroom shaped and mineralized to the surface. The stem feeders appear to elongate northeast through the strike direction of the dome and extend through the 600 m strike length of the Aida claim.
Drills were basically mineralized from surface and below I have highlight a few higher grade intersects.
Hole C14�267 included 36 m of 255.96 g/t AgEq (or 118.1 feet at 8.23 ounces/t AgEq) (hole depths 236 m to 272 m).
C14-266 seen 46 m of 170.53 g/t AgEq (or 150.9 feet of 5.48 ounces/t AgEq) (from 236 m to 282 m) with other wide plus-three ounces/t AgEq intersections downhole.
C14-271 hit 32 m of 348 g/t AgEq (or 111.5 feet of 11.21 ozs/t AgEq) (448 m to 482 m hole depths).
Cordero already contains 364M oz silver indicated plus 91M oz silver inferred. Further indicatedresources of 945,000 oz gold, 6.1B lbs zinc and 3.3B lbs lead have been established. The resource update will add significantly to this and at $0.25 the market cap is about $50 million. At the end of December Levon had $43 million cash so this huge deposit is being valued at only $10 million ( assuming another few million that completed drilling and to update the resource)
Only considering the indicated silver and gold this low valuation works out to approximately 2 cents per ounce of silver or $1.32 per ounce (using 55:1 silver/gold ratio). Basically the market is saying the deposit is not economic.
Given the economies of scale with it's size, I believe it is economic especially now with what appears to be a higher grade section. If it is not, this low valuation gives you the highest leverage to rising silver and zinc prices on the planet
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(c) Copyright 2014, Struther's Resource Stock Report
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