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From: Nigel
ArtDate: 25th October, 2006
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 87.74.94.128
Date: 21/11/06
Time: 00:03
25th October, 2006
Leyshon Makes New Gold and Zinc Discovery at its Zheng Guang Project, China
News Item - Conduit PR
Leyshon Resources Limited (“Leyshon”) (ASX & AIM: LRL) today announces that it has made a new discovery of gold and zinc mineralisation during its drill programme to extend and upgrade resources at the Zheng Guang project in Heilongjiang, northeast China.
A closely spaced reverse circulation drill programme testing for near surface oxide mineralisation at the Zheng Guang North target, located approximately one kilometre north of the Main Ore Zone, has reported a number of near surface gold and zinc intersections including ZGR1002 10 metres at 3.64 g/t gold from 6 metres below surface.
The style of mineralisation appears to be similar to that of the existing inferred resources of the Main Ore Zone which is currently being extended by a major diamond drilling programme. Preliminary analysis indicates that the mineralisation may extend along strike to the northeast and southwest.
The reverse circulation programme is expected to be completed mid November and comprises holes being drilled 20 metres apart, along lines 40 metres apart to a depth of 40 metres. These results are from the first 12 of 110 holes with further results expected to be released shortly.
Managing Director Paul Atherley commenting today said “Zheng Guang North is the first of a number of highly prospective geochemical targets we are testing within the project area which we believe have the potential to significantly increase the near surface economic resources.”
For further information contact:
Paul Atherley - Managing Director Leesa Peters/Jos Simson - Conduit PR Tel: +86 137 1800 1914 Tel: +44 (0) 20 7429 6600 Mob: +61 417 475 038 Mob: +44 (0) 781 215 9885
http://www.leyshonresources.com
Drill Hole Number From
(m) To
(m) Metres Au
(g/t)* Ag
(g/t) Zn
(%)
ZGR1002 6 16 10 3.64 10 0.20
Incl. 6 9 3 10.06 27 0.39
22 23 1 0.60 3 0.30
ZGR1003# 21 24 3 0.09 1 3.00
24 28 4 7.62 23 4.09
Incl. 24 25 1 11.26 48 8.95
ZGR1004 6 7 1 0.55 2 0.04
ZGR1006 2 12 10 0.66 3 0.27
15 17 2 2.7 2 0.08
ZGR1007 5 7 2 0.51 1 0.03
ZGR1008 1 2 1 0.55 2 0.04
28 29 1 0.34 2 0.02
ZGR1009 6 8 2 0.46 2 0.26
ZGR1011 0 10 10 1.08 3 0.17
Incl. 9 10 1 7.23 11 0.12
14 15 1 0.32 2 0.20
18 22 4 3.77 9 0.26
Incl. 18 19 1 8.46 20 0.21
ZGR1012 9 10 1 0.34 1 0.35
28 29 1 1.12 7 0.56
Using 0.3g/t cut off and no more than 2 metres of internal waste. * Preliminary Au results using aqua regia digest on AAS determination on 50gm charge. Results are subject to confirmation by repeat assay from SGS laboratory in Tianjin, China. # ZGR1003 from 21 – 24m was included because the high zinc assay.
Background Information
Leyshon is rapidly advancing the Zheng Guang gold zinc project to production status and is aiming to jointly develop it as the first ever Sino Foreign owned mine in the mineral rich province of Heilongjiang.
Leyshon’s partner, the Qiqiha’er Brigade of the Heilongjiang Bureau of Geology and Mineral Resources, one of the largest organizations of its kind in China, is providing a range of services to the joint venture from its complement of 4,000 technical staff, drill rigs, laboratory and other technical facilities. This valuable support is enabling the project to rapidly move ahead on an extremely cost effective basis.
This year’s drill programme is the largest to be undertaken in Heilongjiang in recent years and comprises over 10,000 metres of diamond drilling and 20,000 metres of reverse circulation drilling and is following up the highly successful 21,000 metres of drilling undertaken in 2004 and 2005.
This year’s programme is expected to increase the initial JORC compliant inferred resource estimate reported in May of this year of 930,000 ounces gold, 64,000 tonnes zinc and 2.6 million ounces silver (equivalent to 1.2 million ounces of gold based on 1 g/t gold = 1% zinc). The estimate has been made by resource specialists Hellman and Schofield of Australia and is based on the results from the 2004 and 2005 programmes.
Leyshon will earn its 70% interest in the project shortly and has recently entered into a 20 year agreement with Qiqiha’er Brigade for the financing, development and mining of the project.
Leyshon has its main operating office in Beijing and is one of the very few foreign mining companies with its Chairman, Managing Director and Chief Operating Officer all based in China.
The information in this report relating to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Malcolm Wilson, a full time employee of the Company, who is a member of the Australasian Institute of Mining and Metallurgy.
Mr Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears
Jos Simson Conduit PR Ltd 76 Cannon St EC4N 6AE Direct: +44 (0) 20 7429 6603 Office: +44 (0) 20 7429 6666 Fax: +44 (0) 20 7429 6699 Mob: +44 (0) 789 987 0450
www.conduitpr.com
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