Levon Resources Ltd.'s updated preliminary economic assessment for its Cordero silver-zinc-lead-gold porphyry project in Mexico pegged a posttax net present value, discounted at 7.5%, of US$387 million, a 15.7% internal rate of return and a 4.84-year payback period.
The average annual production during the 29-year mine life is estimated at 8 million ounces of silver, 99 million pounds of zinc in concentrate, 69 million pounds of lead in concentrate and 11,900 ounces of gold.
The company said March 5 that it estimates average annual cash operating costs, including royalties, at US$198 million.
Initial capital costs are expected at US$575 million, and sustaining capital is estimated at US$295 million over the project's life.
Average annual posttax cash flow will be US$55.2 million over 29 years.
The study used base case prices of US$20 per ounce of silver, US$1.30 per pound of zinc, US$1.00/lb of lead and US$1,300/oz of gold.
The updated study is based on National Instrument 43-101-compliant indicated and inferred mineral resources of 1.27 billion tonnes at 37.4 g/t silver equivalent at a 15 g/t silver equivalent cutoff.
