Gold Enriched Sulphide Zone Through The Cordero

 

VANCOUVER - Levon Resources Ltd. reported results of the 2017 core drill program at the Cordero Ag, Zn, Pb, Au discovery, 35 km north of Hidalgo Del Parral, Chihuahua, Mexico. Complete hole assays have been returned.  The drill results are conformable with the grid drilling results of the 2014 Cordero resource and extend a Au (gold) enriched sulphide zone in a northern part of the Resource.

The Company completed a total of 5,655 m of core in 18 infill core holes within the central part of the Resource aimed at better definition and exploration for improved grades. The gold enriched sulphide zone forms a key part of the Resource and extends from the Pozo de Plata Diatreme into the Cordero Felsic Dome toward the higher grade Aida feeder zone identified in past drilling.

The 2017 drill holes also tested the youngest rhyolite intrusives within the composite Dome complex to the south, which also returned significant by-product gold results.

The ongoing Resource starter pit studies by independent Mining Consultants (IMC) of Tucson in collaboration with M3 indicate by-product gold within the starter pits has a significant impact on pit shapes, modeled production scheduling and projected starter pit economics.

The gold zone is defined by 3D contouring of the Au block model of the Resource. Inspection of 2017 drill results support projection of the zone through 350m on strike to the NE (Figure 2). The gold zone extension drill results are highlighted by four holes defining the projected extension.

2017 drill hole assay composites arranged from SW to NE within the projected Au enriched sulphide zone extension of about 350 m from the Pozo de Plata Diatreme into the Cordero Dome toward the Aida mineralization feeder zone.  Widths are drill hole widths reported in meters.  True widths are not known.  AgEq gpt (silver equivalents gram per tonne) are calculated on the basis of 2014 Resource metal prices, mining costs, projected mill recoveries, transportation charges and NSR deductions used in the 2014 resource calculations considering a $6 NSR cutoff. 

Other holes (C17_275, C17_276) began testing the youngest rhyolite intrusives within the composite Cordero felsic dome to the south. The holes also intersected significant near surface by-product grade Au within the modeled starter pits. 

Drill hole assay composites in the southern part of the Cordero Dome.  Widths are drill hole widths reported in meters.  True widths are not known.  AgEq gpt (silver equivalents gram per tonne) are calculated on the basis of 2014 Resource metal prices, mining costs, projected mill recoveries, transportation charges and NSR deductions used in the 2014 resource calculations considering a $6 NSR cutoff. 

The results highlight the need for additional infill Resource drilling to completely define the Resource internally.  The Resource has yet to be delineated along its perimeter or at depth.  Cordero remains an advanced stage exploration project with the Resource, proximal porphyry targets beneath the Resource, and outlying targets, on the 137,000 hectare district scale property owned by Levon.