LRL Leyshon Res

RNS Number:2470C
Leyshon Resources Limited
02 May 2006


For immediate release                                                 2 May 2006



                           LEYSHON RESOURCES LIMITED

                           ASX, AIM AND MEDIA RELEASE

             Initial Resource Estimate for Zheng Guang Gold Project

Leyshon Resources Limited ("Leyshon" or "the Company") (AIM and ASX : LRL) today
reports an initial Resource estimate on the Zheng Guang Gold Project in
Heilongjiang Province, northeast China. Independent resource consultancy Hellman
and Schofield Pty Ltd of Australia has made the following inferred recoverable
resource estimate:

million tonnes    gold gpt     zinc %        silver gpt         cut off grade
                                                               (gold gpt)
           16       1.8         0.4              5               0.5
            9       2.7         0.5              7               1.0
            6       3.5         0.6              8               1.5
            4       4.2         0.7              9               2.0
            3       4.9         0.8             10               2.5


At the cut off grade of 0.5 gpt gold the recoverable resource contains 930,000
ounces gold, 64,000 tonnes zinc and 2.6 million ounces silver.

As previously reported, there is a strong correlation between the gold and zinc
mineralisation. The equivalent gold content of these two metals has been
estimated at around 1.22 million ounces at a 0.5 gpt cutoff based on an
assumption that 1% zinc is equivalent to 1 gpt gold. The inferred resource and
equivalent gold estimates are highly sensitive to a few high grade samples and
sample grades have not been cut.


A more closely spaced drilling in the forthcoming 2006 programme is planned to
provide confirmation of these estimates and to upgrade them to Measured and
Indicated status.

The resource estimate is based on the data generated from over 17,000 metres of
diamond drilling on the Main Ore Zone over a strike length of 400 metres and to
a depth of 300 metres. The Main Ore Zone is the first area to be tested along a
1.25 kilometre highly mineralised structural corridor located in the central
part of the project between two large geochemical exploration targets.

The resource estimates include oxide, transition and sulphide mineralisation. A
feature of the mineralisation is a large surface gold oxide blanket which covers
the 700 metre strike length, is approximately 150 metres wide and ranges in
depth from 5 to 20 metres from surface. The high grade sulphide mineralisation
generally occurs in steeply dipping veins.


Managing Director Paul Atherley commented: "We are delighted with the initial
resource estimate of nearly a million ounces of gold and a substantial inventory
of zinc and silver. It confirms our view that Zheng Guang is one of China's most
exciting new gold projects and gives us very strong encouragement for its
development potential."


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. The Company has recently
entered into a 20 year joint venture agreement with the Qiqihar Brigade for the
financing development and mining of the project. Leyshon remains one of the very
few foreign resource companies with its main operational office in Beijing.



For further information contact:

Paul Atherley - Managing Director                     Tim Thompson
Tel: +86 13 71800 1914                                Buchanan Communications
Mob: +61 417 475 038                                  Tel: +44 207 466 5000



Resource Estimation Methodology

Recoverable gold resources for the Zheng Guang Prospect were estimated using
Multiple Indicator Kriging which predicts tonnes and grades likely to be
achieved in an actual open pit mining operation. The resource estimate
represents all material within 300 metres of the relatively flat topographic
surface.


Gold grade continuity models have been determined from indicator variography
constructed from resource sample grades composited into 2 metre intervals.


Zinc and silver resources have been estimated as the mean grade of the
respective metal in each panel multiplied by the recoverable tonnes defined in
the gold resource model. These estimates can be considered as conservative as
they represent the zinc and silver grades that would be recovered assuming there
is no strong spatial relationship with gold which is clearly not the case in
some parts of the deposit.


Geological interpretation indicates that these veins are controlled by regional
northwest trending faults and on the local scale, complex sub-vertical base
metal veins. In addition post-mineral dykes have paralleled the mineralising
structures and in some places, mechanically removed the mineralisation. This
means that grade continuity is restricted and more closely spaced drilling will
be required to upgrade these estimates to Measured and Indicated categories.


Sample procedures and the project database have been audited by Maxwell
GeoServices of Australia. The audits highlighted a number of minor issues that
are not considered to have an impact on the resource estimates.



The information in this report that relates to Exploration Results is based on
information compiled by Malcolm Wilson who is a Member of the Australian
Institute of Mining and Metallurgy. Malcolm Wilson is a full-time employee of
the Company. Malcolm 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". Malcolm Wilson consents to the inclusion in
the report of the matters based on his information in the form and context in
which it appears.


Part of this report that relates to mineral resources is based on information
compiled by Mr Simon Gatehouse, a member of the Australian Institute of
Geoscientists and Mr. Neil Schofield, a member of the Australian Institute of
Mining & Metallurgists. Mr Gatehouse is employed by Hellman and Schofield Pty
Ltd, a consultancy primarily concerned with estimation of mineral resources.
Gatehouse and Schofield have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as Competent Persons as defined
in the 2004 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Gatehouse and Schofield consent to
the inclusion in the report of the matters based on this information in the form
and context in which it appears.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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