RNS Number:7736E
Leyshon Resources Limited
19 June 2006


For Immediate Release                                               19 June 2006

                                       

                           Leyshon Resources Limited

       COMMENCEMENT OF MAJOR DRILL PROGRAMME AT ZHENG GUANG GOLD PROJECT

Leyshon Resources Limited ("Leyshon" or "the Company") (ASX and AIM: LRL) today
reports that a major drill programme has commenced at the Zheng Guang
gold-zinc-silver project ("the Project" or "Zheng Guang") in Heilongjiang,
northeast China.

The 30,000 metre programme is the largest to be undertaken in Heilongjiang in
recent years and is expected to increase the recently reported initial inferred
recoverable resource estimate of 930,000 ounces gold, 64,000 tonnes zinc and 2.6
million ounces silver at a 0.5 g/t Au cut off.

Over 50 personnel and 3 diamond drill rigs have been mobilized with a reverse
circulation drill expected on site in due course. The immediate focus is to
extend the oxide zone mineralisation and the high grade gold-zinc-silver veins
discovered last year.

A feature of this year's programme is the change to the exclusive use of
modified rigs that can drill angle holes which proved so successful at
intersecting the steeply dipping high grade veins towards the end of last year's
programme.


Reverse circulation drilling will be employed to delineate and extend the
recently discovered oxide zones which appear as an extensive blanket over the
mineralised areas.


This shallow gold mineralisation, which occurs from the surface up to 20 metres
deep, has the potential to be economically very significant and is a major focus
of the programme. Previously reported intersections include:


   Wide zones of low grade                       13.25 metres at 1.68g/t Au

   Wide zones of moderate grade                  12.8 metres at 3.2g/t Au

   Moderate widths of higher grade               6 metres at 9.1g/t Au

   Narrow zones of high grade                    2 metres at 18.18g/t Au


The more closely spaced drilling of this year's programme is designed to provide
confirmation of the Main Ore Zone initial resource estimates and where possible
to upgrade them to Measured and Indicated status.

The programme will also test for extensions and repetitions of the Main Ore Zone
along a 1.25 kilometre highly mineralised corridor.

Zheng Guang was discovered in 2000 when an area anomalous in gold and silver was
followed up with surface trenching and shallow drilling. This year's programme
will test three previously identified gold and silver anomalies.

The style of mineralisation at Zheng Guang has been interpreted as a mesothermal
carbonate gold-basemetal. Zheng Guang, located between the Duobaoshan porphyry
copper project eight kilometres to the north and epithermal gold to the south,
is believed to be part of a much bigger mineralised system. The current
programme is focusing on this potential.

Mr Chai Desai Director General of the Qiqihar Brigade of the Heilongjiang Bureau
of Geology and Mineral Resources commented: "This is the largest drill programme
to be undertaken in Heilongjiang since the end of the planned economy. Under
Leyshon's guidance we have modified our drill rigs to provide angled drilling
which we believe will make a major contribution towards significantly increasing
the resources at Zheng Guang."

Managing Director Paul Atherley commented: "We are delighted with the
cooperation we have received from our joint venture partner in mobilizing drill
rigs and personnel for this major programme. Zheng Guang is one of China's most
exciting new gold projects and we are anticipating that this year's programme
will generate further exceptional results."

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:

Leyshon Resources Ltd
Paul Atherley - Managing Director
Office:                                                +86 1058699385
China Mobile:                                          +86 13718001914
International:                                         +61 417475038

Buchanan Communications
Tim Thompson                                           0207 466 5000


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.




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

END
DRLUWAURNKRNAAR

Leyshon Resources (LSE:LRL)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Leyshon Resources Charts.
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Leyshon Resources Charts.