Quarterly Report
April 28 2006 - 6:16AM
UK Regulatory
RNS Number:1692C
Leyshon Resources Limited
28 April 2006
For Immediate Release 28 April 2006
Leyshon Resources Limited
MARCH 2006 QUARTERLY REPORT
Leyshon Resources Limited ("Leyshon" or "the Company") (ASX and AIM: LRL) is
today pleased to present its Quarterly Report for the period ending 31 March
2006.
Final results were received from the 12,100 metre diamond drilling programme at
the Zheng Guang gold project, and included further high grade gold intersections
and extremely encouraging results for zinc and silver. Significant base metal
(zinc, lead and copper) and silver associations have been encountered,
highlighting a positive association with the strongly gold mineralized
northwest- trending structures,
The Company is currently awaiting resource and grade estimation results on Zheng
Guang from independent resource consultants Hellman and Schofield.
The 2006 exploration program for Zheng Guang is currently being finalised to
focus on oxide and transition mineralization, high grade gold-zinc-silver
mineralization associated with the NW corridor, gaining a greater understanding
of the structural controls, and regional exploration aimed at locating
additional drill targets.
Leyshon has firmly established its presence in China over the past two years and
is pioneering the opening up of the mineral rich province of Heilongjiang to
modern exploration techniques and foreign investment. Leyshon has its main
operational office in Beijing and uses this base to review opportunities for
acquisition and development elsewhere in China and its neighbouring countries.
For further information contact:
Paul Atherley - Managing Director Tim Thompson/ Nick Melson
Tel: +86 10 8528 9256 Buchanan Communications
Mob: +61 417 475 038 Tel: +44 207 466 5000
MARCH 2006 QUARTERLY REPORT
Zheng Guang Gold Project
The final assays from the 2005 diamond drilling program were received in early
January and were reported to shareholders on January 17, 2006. Significant
results are summarised in the following table.
Hole ID Sample Interval Width Au Ag Pb Zn
From (m) To (m) (m) ppm ppm % %
ZGD039 56 68 12 9.11 15 0.74 1.95
ZGD049 231 251 20 3.52 22 0.09 3.20
ZGD064 112 126 14 4.32 22 0.13 2.69
137 145 8 7.84 45 0.61 4.25
164 173 9 5.78 36 0.05 3.84
ZGD074 72 90 18 3.74 19 0.60 1.15
103 120 17 4.45 13 0.31 0.66
ZGD079 71 77 6 14.62 30 0.03 1.13
134 141 7 5.71 41 0.06 2.76
ZGD085 42 51 9 4.28 21 1.08 1.55
80 90 10 4.74 19 0.43 0.69
ZGD086 103 111 8 5.41 10 0.33 0.62
ZGD090 156 178 22 2.58 9 0.14 1.27
ZGD100 66 72 6 23.76 33 0.63 1.56
84 88 4 33.87 42 1.47 1.98
Notes:
(1) This is a summary of results only. Refer to ASX announcement dated 17
January 2006 for a full copy of the full release including high-grade
intercepts.
(2) Assays of Au analysis by Aqua-Regia digest and AAS determination on 50gm
charge at Qiqihar BGMR Laboratories. Maximum 2m of internal dilution, 0.5g/t
cut-off grade; and no top-cut value applied.
Quality Control
As part of the Company's continual aim to meet or exceed international best
practices, internal and external reviews of sampling procedures were carried out
in 2005. The external field audit was carried out by Maxwell GeoServices
("Maxwell"), WA. The audit looked at sample handling procedures as well as
inspection visits to both the Qiqihar and SGS laboratories.
All core samples were split using a diamond saw. One half was dispatched for
analysis and one half kept as reference. For the 183 samples selected for
metallurgical testing, the core was halved and one half was quarter cored. The
half core was sent for metallurgical testing and of the other half, one part of
the quarter core was sent for analysis and the remainder kept as a reference.
During 2005, a total of 3337 samples sent to the Qiqihar laboratory for Au, Ag,
Cu, Pb, Zn and As assaying.
One in ten samples sent to Qiqihar laboratory was either standard or blank pulp,
or blank core.
One in three samples were sent to SGS in Tanjian, China for check assaying. The
selection criteria for the samples to be sent to SGS was:
*All Qiqihar samples that assayed equal to or above 1ppm gold.
*All samples that had high base metal assays (based on the strong
basemetal/ gold association)
*Between 1 in 10 and 1 in 5 of the remaining samples.
The final check assays were received during the quarter. The results showed good
reproducibility with SGS gold assays being slightly higher than that achieved by
the Qiqihar laboratory. This is believed to be due to Qiqihar using aqua regia
digest versus fire assay by SGS.
Resource Modelling
With field activities curtailed because of winter, a review was undertaken of
the data generated during the 2005 and 2004 exploration programs. The aim was to
better understand mineralisation controls as well as to generate a geological
model in preparation for resource modelling and grade estimation calculations.
Maxwell's conducted an audit of the database which was then provided to
independent resource consultants Hellman and Schofield Pty Ltd. Results of
Hellman and Schofield's modeling and grade estimation are expected shortly.
2006 Exploration Program
Given the current increased pace of development plans, the 2006 exploration
program will be focussing on the following:
*Oxide and transition mineralisation. Given that this material will be
mined during the first few years of planned mining operations, drilling
activities will be aimed at achieving greater certainty with regard to
grade, tonnage and metallurgical recovery. A close-spaced drilling program
is being planned, possibly using a RAB drill.
*High-grade gold-silver-zinc mineralisation associated with the NW
corridor. This was discovered during the 2005 exploration program and
further drilling is needed to define the extent and grade of the
mineralisation.
*Veins were intersected on the 49,400N and 49,450N lines that appear to be
shallowing. These form part of the NW mineralised corridor and may contain
higher-grade oxide mineralisation.
*Greater understanding of the structural controls on mineralisation is
required both for upgrading resource confidence and for delineating new
areas of mineralisation.
*Regional exploration aimed at locating additional drill targets.
Duobaoshan Copper Project
The Company is awaiting the outcome of a scoping study being undertaken by
Ausenco to enable it to determine whether it wishes to proceed with a
development proposal for this project.
New Business Opportunities
The Company continues to evaluate a number of acquisition and development
opportunities both within China and its neighbouring countries, taking advantage
of its operating base in Beijing and knowledge gained from working in the
country over the past two years.
Geological Information
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.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
LEYSHON RESOURCES LIMITED
ABN Quarter ended ("current quarter")
------------------- ------------------
75 010 482 274 31 March 2006
------------------- ------------------
Consolidated statement of cash flows
------------ ------------
Cash flows related to operating activities Current quarter Year to date
$A'000 (9 months)
$A'000
------------ ------------
------------
1.1 Receipts from product sales and related - -
debtors
1.2 Payments for (a) exploration and (215) (2,661)
evaluation
(b) development - -
(c) production - -
(d) administration (390) (1,304)
1.3 Dividends received
1.4 Interest and other items of a similar 74 278
nature received
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other - Business development (80) (304)
------------ ------------
Net Operating Cash Flows (611) (3,991)
------ ---------------------- ------------ ------------
Cash flows related to investing
activities
1.8 Payment for purchases of: - -
(a) prospects - -
(b) equity investments - (3)
(c) other fixed assets
1.9 Proceeds from sale of: - -
(a) prospects - -
(b) equity investments - -
(c) other fixed assets
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other 12
- Security bonds 10
------------ ------------
Net investing cash flows
10 9
------ ---------------------- ------------ ------------
1.13 Total operating and investing cash flows
(carried forward)
(601) (3,982)
------ ---------------------- ------------ ------------
------ ------------
1.13 Total operating and investing cash flows (601) (3,982)
------ (brought forward) ------------ ------------
----------------------
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, - -
etc.
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other - capital raising costs - -
------------ ------------
Net financing cash flows - -
------ ---------------------- ------------ ------------
Net increase (decrease) in cash held (601) (3,982)
1.20 Cash at beginning of quarter/year to date 6,126 9,489
1.21 Exchange rate adjustments to item 1.20 (6) 12
------------ ------------
1.22 Cash at end of quarter 5,519 5,519
------ ---------------------- ------------ ------------
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
-------------
Current quarter
$A'000
-------------
-------------
1.23 Aggregate amount of payments to the parties included in 126
item 1.2 -------------
1.24 Aggregate amount of loans to the parties included in -
------ item 1.10 -------------
--------------------------------
1.25 Explanation necessary for an understanding of the transactions
-------------------------------------------
Payments include executive remuneration, director's fees, company
secretarial services and provision of a fully serviced office.
-------------------------------------------
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material
effect on consolidated assets and liabilities but did not involve cash
flows
--------------------------------------------
Not Applicable.
--------------------------------------------
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest
--------------------------------------------
Not Applicable.
--------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
------------- -------------
Amount Amount used
available
$A'000 $A'000
------------- -------------
3.1 Loan facilities - -
------------- -------------
3.2 Credit standby arrangements - -
----- ----------------------- ------------- -------------
Estimated cash outflows for next quarter
------------------
$A'000
------------------
4.1 Exploration and evaluation 500
------------------
4.2 Development -
----- ----------------------------- ------------------
Total 500
----- ----------------------------- ------------------
Reconciliation of cash
------------------------- ------------ -------------
Reconciliation of cash at the end of the quarter Current quarter Previous
(as shown in the consolidated statement of cash quarter
flows) to the related items in the accounts is
as follows.
$A'000 $A'000
------------------------- ------------ -------------
-------------
5.1 Cash on hand and at bank 941 618
------------ -------------
5.2 Deposits at call 5,508
4,578
------------ -------------
5.3 Bank overdraft - -
------------ -------------
5.4 Other (provide details) - -
----- ---------------------- ------------ -------------
Total: cash at end of quarter (item 1.22) 5,519 6,126
----- ---------------------- ------------ -------------
Changes in interests in mining tenements
---------------- ----------- -------- --------
Tenement Nature of Interest at Interest at end
reference interest beginning of of quarter
quarter
(note (2))
---------------- ----------- -------- --------
6.1 Interests in None - - -
mining ---------------- ----------- -------- --------
tenements
relinquished,
reduced or
lapsed
6.2 Interests in None - - -
mining ---------------- ----------- -------- --------
tenements
acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
----------
Total number Number quoted Issue price per Amount paid up
-------------- ---------- ---------- security (see per security
note 3) (cents) (see note 3)
---------- (cents)
------------
------------
7.1 Preference 1,000 - Not Applicable Not Applicable
------ +securities ---------- ---------- ---------- ------------
(description)
----------
7.2 Changes
during
quarter
(a) Increases
through
issues
(b) Decreases
------ through ---------- ---------- ---------- ------------
returns of
capital,
buy-backs,
redemptions
----------
7.3 +Ordinary 131,466,558 131,466,558 Not Applicable Not Applicable
securities ---------- ---------- ---------- ------------
7.4 Changes
during
quarter
(a) Increases
through
issues
(b) Decreases
------ through ---------- ---------- ---------- ------------
returns of
capital,
buy-backs
----------
7.5 +Convertible
debt ---------- ---------- ---------- ------------
securities
(description)
7.6 Changes
during
quarter
(a) Increases
through
issues
(b) Decreases
------ through ---------- ---------- ---------- ------------
securities
matured,
converted
----------
7.7 Options 10,000,000 - Exercise price Expiry date
(description
and
conversion
factor)
8,500,000 - $0.20 each 30 June 2007
2,700,000 - $0.30 each 30 June 2007
$0.35 each 31 Dec 2007
---------- ---------- ---------- ------------
7.8 Issued during
quarter ---------- ---------- ---------- ------------
7.9 Exercised
during ---------- ---------- ---------- ------------
quarter
7.10 Expired
------ during ---------- ---------- ---------- ------------
quarter
----------
7.11 Debentures
(totals only)
------ ---------- ---------- ----------
7.12 Unsecured
notes (totals ---------- ----------
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the
matters disclosed.
Sign here: ........................................... Date: 28 April 2006
(Company secretary)
Print name: STACEY APOSTOLOU
Notes
1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting
period. If the entity is involved in a joint venture agreement and there are
conditions precedent which will change its percentage interest in a mining
tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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