Levon Expands Both Discovery Zones at Cordero Project, Mexico: 112 Metres Grading 49.4 g/t Silver, 0.07 g/t Gold, 1.9% Zinc & 1.1% Lead in Hole C11-118 at Josefina
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/31/11 -- Levon Resources Ltd. ('Levon', or the 'Company') (TSX VENTURE: LVN)(BERLIN: LO9)(FRANKFURT: LO9) is pleased to announce additional results from the ongoing Phase 3 exploration and drill program currently underway at the Company's 100% owned Cordero bulk tonnage silver, gold, zinc and lead project located 35 kilometres northeast of Hidalgo Del Parral, Chihuahua, Mexico. Drill results include additional wide bulk tonnage intercepts from the Porphyry Zone that extends the footprint by 200 metres to the northeast (C11-107) and the discovery of a new near surface zone at the south end of the Zone (C11-139). At Pozo de Plata Diatreme additional bulk tonnage intercepts, starting at surface, were encountered in the southerly extension of the Zone which remains open. Higher grade results at the Josefina zone in hole C11-118 (112 metre at 49.4 g/t silver, 0.07 g/t gold, 1.9% zinc and 1.1% lead) correlate well with excellent results previously announced in hole C11-105.
Tables 1a to 1c summarize the latest drill results. Silver equivalent definitions are presented at the end of this release. Table 2 summarizes the drill hole locations and Figure 1 illustrates the locations.
Josefina Mine Zone
The Josefina Mine Zone (Josefina) is located east of the Pozo de Plata Diatreme discovery and extends for 800 metres northeast towards the Porphyry zone. The Josefina has been tested by a number of holes including wide intercepts in hole C11-105 (see news release dated March 17, 2011) Hole C11-118 collared 200 metres northwest of hole C11-105 encountered several well mineralized, long intervals below 54 m with the highest grade intercept of 112 metres of grading 49.4 g/t silver, 0.07 g/t gold, 1.9% zinc and 1.1% lead beginning at 344 metres depth. Mineralization in C11-118 is Porphyry zone-style and illustrates the transitional nature of the Josefina Zone which contains both diatreme hosted and porphyry hosted mineralization. Hole C11-110 collared 125 metres southwest of hole C11-118 also intercepted multiple intervals of mineralization including a 126 metre run starting at 66 metres that returned 30.7 g/t silver, 0.10 g/t gold, 0.31% zinc and 0.24% lead.
Table 1a: Josefina Zone Drill Results
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from To length Ag Au Ag Eq
Hole (m) (m) (m) (g/T) (g/T) Zn % Pb % (g/T)
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C11-110 66 192 126 30.7 0.103 0.31 0.24 53.5
C11-110 268 292 24 11.5 0.013 0.91 0.28 47.3
C11-110 332 370 38 72.1 0.072 2.20 1.39 181.8
C11-110 464 508 44 25.2 0.036 0.61 0.50 59.9
C11-111 No significant assays
C11-112 54 84 30 160.1 0.023 0.95 0.66 208.4
C11-114 66 96 30 14.8 0.110 0.41 0.13 38.1
C11-114 202 214 12 36.7 0.057 0.56 0.36 67.1
C11-116 No significant assays
C11-117 No significant assays
C11-118 72 118 46 11.9 0.043 0.31 0.09 26.4
C11-118 176 324 148 34.8 0.090 1.33 0.59 97.1
C11-118 344 456 112 49.4 0.071 1.92 1.10 142.2
C11-119 No significant assays
C11-120 No significant assays
C11-121 220 240 20 5.9 0.022 0.63 0.16 30.3
Pozo de Plata Diatreme Zone
Seven step-out holes were drilled to extend the southern and westerly limits of the Pozo de Plata Diatreme Zone. Five of these holes encountered well mineralized diatreme breccia from surface to down hole depths of from 34 to 132 metres. The best hole is C11-124, that was collared near previous hole C09-02, and that returned 38.7 g/t silver, 0.17 g/t gold, 0.29% zinc and 0.36% lead. The Pozo de Plata zone remains open to the west and to the south.
Table 1b: Pozo de Plata Zone Drill Results
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from To length Ag Au Ag Eq
Hole (m) (m) (m) (g/T) (g/T) Zn % Pb % (g/T)
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C11-104 30 42 12 41.7 0.081 1.11 0.59 96.5
C11-104 174 216 42 41.9 0.163 0.62 0.64 89.6
C11-104 328 336 8 160.9 0.067 3.16 1.66 306.1
C11-124 0 132 132 38.7 0.166 0.29 0.36 68.8
C11-125 0 34 34 31.2 0.236 0.18 0.17 57.4
C11-126 0 42 42 49.9 0.274 0.54 0.40 95.6
C11-126 66 98 32 53.9 0.063 0.28 0.68 86.2
C11-128 0 62 62 23.6 0.355 0.15 0.21 57.9
C11-133 No significant assays
C11-134 No significant assays
C11-135 14 38 24 32.3 0.058 0.46 0.37 60.5
Cordero Porphyry Zone
The Cordero Porphyry Zone is located 1,500 metres east of the Pozo de Plata Diatreme Zone and comprises a number of mineralized centres within a north south corridor, over a large area now 1,200 metres by 800 metres. Ongoing drilling at the northern end of the zone continues to block out an area of enhanced mineralization. Hole C11-107 encountered several intervals including a run starting at 426 metres that returned 82 metres of 18.8 g/t silver, 0.03 g/t gold, 1.20% zinc and 0.08% lead. This hole represents a 200 metre extension of the Porphyry zone to the east. Hole C11-115 located an additional 200 metres north of hole C11-107 encountered two minor intervals at depth that may indicate a further extension of the zone in that direction. Two holes in central part of the Porphyry zone, C11-113 and C11-123, returned multiple mineralized intervals including one intercept in hole C11-113 of 108 metres of 44.9 g/t silver, 0.04 g/t gold, 1.86% zinc and 0.65% lead starting at 280 metres depth.
Farther south in the Porphyry zone, some 400 metres from hole C11-113, a new near surface zone was discovered in hole C11-139 that returned in part 74 metres of 52.0 g/t silver, 0.05 g/t gold, 1.73% zinc and 1.09% lead beginning at a depth of 2 metres.. Mineralization is hosted by high grade crackle breccias in dacite porphyry and disseminated and stockwork mineralization at depth.
Table 1c: Porphyry Zone Drill Results
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from To length Ag Au Ag Eq
Hole (m) (m) (m) (g/T) (g/T) Zn % Pb % (g/T)
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C10-91 124 136 12 21.2 0.390 0.17 0.14 56.2
C10-92 602 620 18 18.8 0.022 1.11 0.10 55.6
C10-92 676 694 18 7.3 0.004 0.96 0.06 37.4
C10-92 732 744 12 21.9 0.015 1.78 0.10 77.8
C11-107 28 124 96 13.5 0.021 0.32 0.18 29.6
C11-107 242 378 136 14.6 0.031 0.51 0.20 37.4
C11-107 426 508 82 18.8 0.026 1.20 0.08 57.8
C11-113 98 118 20 15.0 0.013 0.48 0.23 36.7
C11-113 280 388 108 44.9 0.040 1.86 0.65 120.9
C11-113 416 434 18 47.2 0.048 0.46 0.35 74.0
C11-113 524 538 14 27.7 0.036 1.30 0.17 73.0
C11-113 668 696 28 13.4 0.011 0.41 0.19 31.7
C11-115 210 246 36 17.3 0.099 0.13 0.08 30.0
C11-115 520 574 54 17.7 0.011 0.58 0.23 42.2
C11-122 No significant assays
C11-123 20 74 54 36.1 0.109 0.89 0.17 74.5
C11-123 510 568 58 19.3 0.024 0.17 0.10 28.9
C11-139 2 76 74 52.0 0.052 1.73 1.09 137.9
C11-139 102 110 8 145.9 0.155 4.94 1.81 353.2
C11-139 220 288 68 12.7 0.021 0.39 0.20 31.2
C11-139 396 408 12 17.9 0.017 0.37 0.26 37.2
Discussion of Results
Ongoing Phase 3 drilling at the Cordero project continues to expand both discovery zones, which now appear to be connecting up in a southern corridor of mineralization. The original discovery at Pozo de Plata Diatreme remains open to the south and west where new intercepts reported here, over an area of 300 metres by 160 metres, encountered, from surface, diatreme hosted mineralization. To the east, the Porphyry zone is a loosely defined area wherein mineralization is hosted by high-level stocks and related breccias and contact hornfels-altered zones where mineralization is comprised of disseminated, stockwork and vein controlled sphalerite and galena. Results from the porphyry zone presented herein have expanded the zone by an additional 200 metres to the northeast In addition a new surface zone was discovered in hole C11-113 near the central part of the Porphyry zone, and in C11-139 near the present sourtheast part of the zone. The intermediary Josefina Zone is a transitional area between the Pozo de Plata Diatreme and Porphyry Zones, and hosts mineralization with the character of both areas. Drilling continues to expand this zone to the east, west and at depth.
IMC Engineering of Tucson, Arizona is engaged in preparing an initial 43-101 resource calculation in companion with M3 Engineering of Tucson, Arizona who has initiated metallurgical testing and the engineering studies required for a 43-101 preliminary economic assessment (PEA) of Cordero.
'We continue to be pleased with the steady Phase 3 discovery expansion drilling at Cordero now that we have consolidated our 100% ownership in the project with the acquisition of our joint venture partner after 25 months of exploration as summarized in our March 25, 2011 news release,' comments Ron Tremblay, President, CEO, Levon. 'We are entering a significant new stage at Cordero.'
'Geologic mapping and soils sampling grids (1,200 samples in three exploration grids) are underway mostly as surface follow up on the just returned 3D IP survey inversion results by SJ Geophisics reported previously. The 3D IP inversions show subsurface chargebility anomalies that appear to be extensions north, south and east of the presently defined Cordero Porphyry Zone and northwest from the Pozo de Plata Diatreme Zone. Our goal is to prioritize areas for drill testing. The geologic mapping so far confirms exposed, iron stained diatreme breccias 300 m south of the Josefina zone, but only exposed in float and sparce outcrop in an area of mostly cow pasture and cornfields. This is well south of the axis of the Cordero Porphyry Belt where we have been focusing exploration to date,' explains Vic Chevillon, VP Exploration, Director, Levon. 'We named the area Pastora del Sur several weeks ago and the detailed mapping results over the last several days tends to confirm initial diatreme projections.'
QA/QC Procedures
All drill holes are started with HQ diameter core and then when necessary 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 are core lengths and not true widths, which are unknown. All of the samples are 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), Tucson, Arizona reviews the QA/QC data.
The project is under the direct supervision of Vic Chevillon, MA, CPG, Vice President of Exploration for Levon who is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for this News Release.
(i) 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. Reported drill hole locations (UTM Conus Nad 72, Zone 13)
Hole East North Elevation Length Azimuth Dip
C10-91 443618 3014109 1589 659.9 0 -90
C10-92 443558 3015101 1591 936.6 0 -90
C11-104 442806 3014151 1586 497.0 180 -60
C11-107 443678 3015306 1603 867.3 0 -60
C11-110 443080 3014311 1623 541.7 180 -60
C11-111 442814 3014144 1584 502.8 90 -60
C11-112 443075 3013845 1578 500.2 0 -60
C11-113 443433 3014768 1598 909.3 0 -90
C11-114 443080 3014312 1623 414.7 0 -90
C11-115 443698 3015500 1609 969.5 0 -90
C11-116 443201 3013856 1573 524.5 0 -90
C11-117 443073 3013842 1578 496.9 0 -90
C11-118 443200 3014350 1624 455.5 0 -90
C11-119 443201 3013858 1573 495.8 0 -60
C11-120 443073 3013841 1578 490.2 180 -60
C11-121 443203 3013851 1573 452.0 180 -60
C11-122 443811 3015110 1586 488.9 0 -90
C11-123 443374 3014870 1605 646.5 0 -90
C11-124 442341 3013754 1564 191.5 0 -90
C11-125 442342 3013865 1570 131.3 0 -90
C11-126 442341 3013754 1564 254.2 180 -60
C11-128 442342 3013861 1568 189.6 0 -60
C11-133 442359 3013997 1555 35.1 0 -60
C11-134 442374 3014046 1560 130.4 0 -60
C11-135 442374 3014051 1561 118.9 0 -90
C11-139 443809 3014526 1559 448.1 345 -60
About Levon Resources Ltd.:
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.
Contacts:
Levon Resources Ltd.
Ron Tremblay
President and CEO
(604) 682-3701
(604) 682-3600 (FAX)
www.levon.com