Levon reports gold discoveries from Congress

The project is a 50/50 joint venture with Veronex Resources (VSE). The two companies are aiming to prove up sufficient tonnage to justify a production rate of 250 tons per day drawn from several of nine known gold zones. Geologic reserves are currently estimated at 670,000 tons grading 0.24 oz gold per ton.

All the recent discoveries were made in the Howard vein, one of three veins Levon is currently extending underground on the property by drifting. Two high grade zones were outlined during re-sampling of a previous discovery on the Upper Howard Level and both lie within a 728-ft section grading 0.336 oz gold over a 4.7-ft width.

The first zone averaged 0.563 oz gold per ton for a length of 196.8 ft with an average width of 3.8 ft. The second graded 0.478 oz gold for 107.6 ft with an average width of 5.47 ft.

Several raises were driven to test the upward extension of both zones. The raise from the first zone encountered 82 ft of mineralization grading 0.632 oz gold over an average width of 4.1 ft. In the second raise, the zone was extended for 34.5 ft, grading 0.357 oz gold over a width of 3.9 ft.

A fifth gold zone was discovered on the Main Howard level, about 420 ft below the upper drift. The zone averaged 0.302 oz gold extending over 65 ft in the main Howard drift over a 6.5-ft width. As with the Upper Howard discoveries, Levon tested the upward extension of the zone by raising and encountered at least 27 ft of mineralization grading 0.606 oz gold over a width of 4.5 ft, with the zone still open.

The partners and Giant Bay Resources (TSE) began tests late in 1988 to determine if bioleaching would be the optimum oxidation method for treatment of the refractory Congress ores. According to Jim Baylis of Levon, only one of three tests required to make an evaluation has been completed to date because of unusually severe weather this winter. The Congress project was shut down temporarily in early February due to extreme frost conditions and for re-evaluation of data.

“Although results are inconclusive at this time, we feel encouraged,” Baylis said, adding that test work would continue in the 1989 season.

]]>