Silver explorer Levon Resources (LVN.TO) has announced it will re-start its exploration program at the Cordero bulk tonnage silver project in September. The Cordero project is located in Mexico’s Chihuahua state and has a resource estimate containing 455 million ounces of silver combined with gold, lead and zinc as by products. Levon plans to drill 14,000 meters to expand the current resource estimate.
As the deposit has a low average grade, a PEA which was completed in 2012 outlined a production scenario with an output of 8 million ounces of silver per year. The PEA calculated an after-tax NPV5% of $195M for the project based on just a part of the total resource base, but taking cost escalations into consideration, the updated NPV will probably be lower.
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Disclosure: The author holds no position in Levon Resources. Please see our disclaimer for current positions.
