Alessandro Bruno, 22 April 2014
Levon Resources (Levon) is a Canadian gold, silver, zinc, lead and precious metals exploration company engaged in the acquisition, exploration and development of commodities properties in Canada, Nevada and Mexico. Their flagship is the Silver, Gold, Lead, and Zinc, Cordero project located 220 km south of Chihuahua, Mexico.
Levon (TSX: LVN) recently reported that the fourth phase of drilling has been completed on the Cordero property with 24 core holes to test the Aida claim which is located within the property. Levon has collected 14 samples that show significant tonnage potential for silver (Ag), gold (Au), zinc (Zn) and lead (Pb) mineralization present in the surface in and around the Aida area. (...)
Mexico can look back on a centuries-long mining tradition that began before the Spaniards arrived and continues today. It stands out among other metals by its production of silver, gold, zinc and lead. Mexico is the largest silver producer in the world and accounts for about 17% of world production. Mexico also has tremendous potential in the mining sector. Only 20% of the territory has been explored so far and geological studies show that two-thirds of Mexican territory contains mineral deposits that are at least as important as those that make up the current production.
Levon is located in one of the most productive mining areas in Mexico - the state of Chihuahua. Mining has a privileged position in terms of government support for the sector, as it is seen as a major engine of the country's economic development. The growth of the Mexican mining sector is largely due to the increase in the prices of several metals and minerals over the period 2008-2009. But there is also a renewed interest in gold and silver investments, based on a new “gold rush” in North America - especially in the Canadian province of Quebec and very likely Ontario as well.
Industry growth in the Mexican mining sector was also fueled by political and financial stability and proximity to the United States. Even though the US economy is lagging behind, Mexico is managing to secure strong exports of its minerals to China. In fact, demand from China will continue to stimulate the Mexican mining sector as the Asian giant invests heavily in Latin America.
China is currently the largest producer of gold, zinc and lead, but if it is to continue industrial development it will be forced to consume more than 50% of the world's major mineral raw materials over the next decade. In addition, China will also try to curb the environmental pollution caused by some mining activities - the most famous here is the extraction of rare earths. It will take time to find alternative sources across national borders. Levon is certainly able to benefit from this very demand.
In order to meet Chinese demand, the global market is experiencing a phenomenon of mergers and acquisitions by Chinese mining companies that have had a significant impact on the Mexican market. For example, Jinchuan Group Ltd of Tyler Ressources Ltd has an offer bgzl. whose copper, zinc, molybdenum, silver and gold resources are made in the state of Chihuahua. It is very likely that Chinese investors will try to buy more companies.
The demand for raw materials in the world is growing and projects are currently in full swing in Mexico. Canadian companies like Levon are well positioned to meet this demand. Mexico has signed an open market economy with skilled workers and free trade agreements with a total of 41 countries. Mexico is a signatory to the North American Free Trade Agreement (NAFTA) with Canada and the United States, which entered into force in 1994 and agreed to liberalize trade between the three countries.
Source: Alessandro Bruno, April 22, 2014, investor Intel. http://investorintel.com/gold-silver-intel/levon-resources-benefit-growing-chinese-demand-mexican-minerals/
