Levon Resources Files Updated 2018 Resource and Preliminary Economic Assessment 43-101 Report, Cordero Project, Chihuahua, Mexico

VANCOUVER, British Columbia, April 18, 2018 (GLOBE NEWSWIRE) -- Levon Resources Ltd. (TSX:LVN) (“Levon” or “the Company”) is pleased to announce that it has filed a Canadian National Instrument (“NI”) 43-101 Technical Report dated effective March 1, 2018 on SEDAR at www.sedar.com. The Report is prepared by M3 Engineering & Technology (“M3”) in collaboration with Independent Mining Consultants (“IMC”) of Tucson, Arizona and provides the 2018 resource update (IMC) and a Preliminary Economic Assessment Update (“PEA Update”) (M3) for the Cordero Silver, Zinc, Lead, Gold Project in Chihuahua, Mexico; the results of which were announced in a March 5, 2018 news release.

Highlights of the PEA Update (United States dollars)

• Mineral Resources Tabulated at 15.00 g/t AgEq (Silver Equivalent) Cutoff.

Cordero Project Mineral Resources

• A sub-set of the indicated and inferred mineral resource was used to develop an open pit mining plan at a rate of 40,000 tonnes of mill feed per day, with flotation processing to create high-quality lead and zinc concentrates. This mining rate is identical to the mining rate in the 2013 PEA update (news release of May 15, 2013). Mineral concentrates will be sold to offshore smelters.
• Average annual production of 8 million ounces of silver, 44,788 tonnes of zinc (99 million lbs) in concentrate, 31,158 tonnes of lead (69 million lbs) in concentrate and 11,900 ounces of gold.
• Economic analysis for the updated study are based on $20/oz silver, $1.30/lb zinc, $1.00 lead, and $1,300/oz gold.
• The updated mine plan for the updated 2018 PEA, which is scheduled over a 29 year mine life includes total mineralized material of 417.5 million tonnes at a 46.5 g/t silver equivalent, producing concentrates containing a total of 231 million ounces silver, 2,863 million pounds of zinc, 1,992 million pounds of lead, and 0.35 million ounces of gold.
• The waste to mill feed tonnage ratio is 0.98:1 since the resource crops out at the surface. The resource has not been drill delineated on its perimeter, and the modeled strip ratio includes undrilled areas in the modeled open pit as waste. The modeled open pit for the PEA measures --2000 m long x 1300 m wide x 380 maximum depth.
• Metallurgy is simple (side by side lead and zinc conventional floatation mills) with 88% overall recoveries after three rounds of bench-scale testing.
• Capital costs estimated at $570 million for initial project capital including mine, plant, TSF, and Owners Costs, and $271 million for sustaining capital over the mine life.
• Average annual after-tax cash flow of $77.4 million over 29 years.
• Average operating mining cost of $2.34 per tonne of mill feed, a plant operating cost of $5.08 per tonne of mill feed, and a G&A cost of $1.12 per tonne of mill feed.  Average annual cash operating costs are $193 million including royalties.
• The base case economic estimate is an after tax net present value of $438 million, using a 7.5% discount rate, and an after-tax internal rate of return of 16.5% with a payback period of 4.8 years.
• An upside silver price of $25/oz yields an after tax net present value of $713 million, using a 7.5% discount rate, and an after-tax internal rate of return of 21.9% with a payback period of 3.9 years.
• Project infrastructure includes a good road network between Hidalgo del Parral and the mine site. Power transmission will require a 232 kV extension of 75 km to the mine site substation. Skilled mine labor is available from Hidalgo del Parral and other nearby communities in southern Chihuahua.
• Levon owns all claims that cover the Cordero district, which total 37,000 hectares.
• Please refer to "Non-GAAP Financial Measures" in this press release.

Commenting on this news, Ron Tremblay, President and CEO, said, “The PEA Update confirms Levon’s belief in the upside mineral potential and positive economics that we always expected.  With the successful completion of an infill drilling program and subsequent metallurgical, mining, geotechnical, and tailings studies, Levon remains confident that it will continue to improve the project towards commercial production in the future.”

Qualified Persons

Levon’s technical work on the Cordero Project is supervised by Vic Chevillon, Vice President – Exploration for Levon and a Qualified Person as defined by NI 43-101.

The Technical Report was supervised by Daniel H. Neff, P.E., Chairman of M3, a Qualified Person as defined by NI 43-101. Mr. Neff has reviewed and approved the technical information contained in this news release.

The updated Cordero resource estimate was prepared under the direction of Herb Welhener (SME registered member #3434330), a Qualified Person as defined by NI 43-101.

About Levon Resources Ltd.

Levon Resources is exploring one of the world's largest silver resources at the company's 100%-owned Cordero Project in northwest Mexico.  The 37,000 hectares property covers an entire porphyry district that hosts the announced resource and numerous exploration targets for bulk tonnage diatreme hosted, porphyry style, and carbonate replacement mineral deposits.

Additional information about the Cordero Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: “Cordero Project, NI 43-101 Preliminary Economic Assessment Update” dated effective March 1, 2018.

For more information on Levon Resources, please visit our website at www.levon.com.

Technical Disclosure

Mineral Resource estimates reported herein have been classified as Indicated or Inferred based on the confidence of the input data, geological interpretation and grade estimation parameters.  Mineral Resources used for estimating project economics reported herein are based on inputs that include metallurgical performance, geologic and geotechnical characterization, operational costs, and other economic parameters. The company is not currently aware of any known factors that are reasonably likely to have a negative material impact on the Company's Mineral Resources. The Mineral Resource estimate was prepared in accordance with NI 43-101 and classifications adopted by the CIM Council.

For further information, contact the Company IR Direct at 604-682-2991, or main office number 778-379-0040.

ON BEHALF OF THE BOARD

"Ron M. Tremblay"
_____________________________ 
Ron M. Tremblay
President and Chief Executive Officer

Neither the Toronto Stock Exchange (the "TSX") nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including our belief as to the extent and timing of various studies including the PEA, and exploration results, the potential tonnage, grades and content of deposits, timing and establishment and extent of resources estimates. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements.