Levon Resources has built Cordero into one of Mexico's premier porphyry targets for silver, gold, zinc and lead. The current indicated and inferred resources, combined with the project's eight large-scale mineral targets on more than 370 square kilometres, have established Cordero as a world-class property and a district-scale discovery.
Cordero's host rocks, geology, metal assemblage and size are all analogous to some of Mexico's largest world-class, bulk-tonnage silver deposits including Penasquito (Goldcorp), Camino Rojo (Goldcorp) and Pitarilla (Silver Standard). These deposits are all situated within the same emerging Chihuahua-Zacatecas silver-gold belt in northern Mexico.
In less than five years, Levon has built a resource* with:
Silver: 488.5 M oz indicated, 44.4 M oz inferred Gold: 1.37 M oz indicated, 84,000 oz inferred Zinc: 9.0 B lbs indicated, 663.3 M lbs inferred Lead: 4.7 B lbs indicated, 440.3 M lbs inferred
Here are tonnage and grade details based on a Net Smelter Return cut-off of US$6.00 per tonne (as announced in Levon's news release dated June 19, 2012). The resource is within an open pit geometry generated by a floating cone algorithm using metal prices and recoveries of: Lead, $0.95/lb and 80% recovery; Zinc, $0.94/lb and 81% recovery; Silver, $20.00/oz with 85% recovery, gold $1,250/oz, 18.00% recovery to a lead concentrate and 15% recovery to a zinc concentrate:*
31.1034768 grams in one troy ounce, reported as oz/t (where t= tonne)
* The Cordero updated resource estimate is tabulated within a revised open pit geometry and was developed from 244 drill holes encompassing 118,937 meters of core drilling, including the latest 41 holes (21,168 m) drilled at the Cordero Project since the Company's announcement of its previous resource estimate in June, 2012. The September 03, 2014 resource remains open to expansion through step out delineation and infill drilling, on strike and beneath the modeled open pit.
The updated Cordero resource estimate presented was prepared under the direction of Herb Welhner (SME registered member #3434330), Vice President of IMC, who is a qualified person under NI 43-101. IMC has utilized updated metal price projections, estimated metallurgical recoveries, production and processing cost estimates from M3 Engineering & Technology ("M3"), Tucson, Arizona. M3 has revised the prices and costs from their 2012 PEA study ("NI 43-101 Technical Report Preliminary Economic Assessment Chihuahua, Mexico", Issue Date: 8 May 2013, Effective Date: 12 March 2012) filed under Levon's profile at www.sedar.com) to include the recent pre-feasibility stage metallurgical results that improve metal recoveries.
For more information about the Cordero mineral resource, including figures for various NSR cut-offs, please view our latest Technical Report.Levon expects to file a technical report with respect to the updated resource estimate within 45 days from the Sept. 3 news release.
The Cordero resource, located on just one of the property's eight large-scale targets, now ranks amongst the world's largest silver resources.
Preliminary Economic Assessment**
A successful Preliminary Economic Assessment (PEA) established Cordero's potential economic viability based on just 30% of the outcropping, open-pit resource. Here are the base case figures from the PEA (conducted by Independent Mining Consultants and M3 Engineering):
Silver Price: US$25.15 Internal Rate of Return (IRR): 14.80% Mine Life: 15 years (to complete four stages of a planned eight-stage open pit) Mill Capacity: 40,000 tpd Strip Ratio: 1.2/1 Payback: 5.1 years
**A Preliminary Economic Assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Technical Report: Cordero Project, Preliminary Economic Assessment was authored and approved by Herbert E. Welhener, MMSA-QPM, SME Registered Member #3434330RM who is the Qualified Person for purposes of this Preliminary Economic Assessment and the associated updated resource calculation.
For more information, please view our latest PEA report.
Cordero hosts at least eight large-scale targets on two distinct porphyry belts and a third mineralized volcanic center. The current resource is open to expansion on strike and at depth beyond the 2.8km x 2km conceptual open pit.
The following risk issue has been identified for the Cordero project:
1) Cordero as currently understood is a low grade, bulk tonnage deposit which will need favorable metal recoveries, metal prices and low operating costs to be developed.
Drill hole composited assays, drill maps, cross sections:
Reported for all 24 holes (C13-251 through C14-274, Aida Claim)*
Cordero Project, Chihuahua State, Mexico