LRL Leyshon Res

RNS Number:1759T
Leyshon Resources Limited
19 March 2007



19 March 2007

                           Leyshon Resources Limited

              ANNOUNCES SIGNIFICANTLY INCREASED RESOURCE ESTIMATE

Leyshon Resources Limited ("Leyshon") (ASX & AIM: LRL) is pleased to announce a
significant increase and upgrade to its resource estimate from its highly
successful 2006 drill programme at the Zheng Guang project in Heilongjiang,
northeast China.

Independent consultancy Hellman and Schofield Pty Ltd of Australia has estimated
the resource at:

   *1.21 million ounces of gold;
   *94,000 tonnes of zinc; and
   *3.72 million ounces of silver,

following the 2006 drilling programme.

The gold equivalent content of these metals has been estimated at 1.74 million
ounces at the 0.5 g/t gold cut off based on an assumption that 1% zinc is
equivalent to 1.5 g/t gold and 50 ounces of silver is equivalent to 1 ounce of
gold.

The 2006 programme has increased the overall gold equivalent content by 43% and
upgraded over 50% of the resource into the Indicated category (overleaf).

Other highlights are as follows:

   *The programme has increased the resource by 8 million tonnes;
   *Gold grade has lifted from (Inferred) 1.8g/t to 1.95g/t (Indicated); and
   *Indicated silver grade has lifted from (Inferred) 5g/t to 6.3g/t
    (Indicated).

Hellman and Schofield used Multiple Indicator Kriging based on 178 diamond drill
and 596 reverse circulation holes to estimate the resource. This method takes
into account the effects of dilution and provides an estimate of the tonnes and
grades likely to be actually achieved during mining. The range of cut off grades
used in the estimate are those which are considered to be appropriate for open
pit mining. Details of the estimation methodology are provided below.

                           March 2007 Resource Estimates
Cut off          Indicated                 Inferred                  Total
Au     Mt    Au     Zn    Ag     Mt    Au    Zn    Ag     Mt    Au    Zn    Ag
g/t          g/t     %   g/t          g/t     %   g/t          g/t     %   g/t
0.5   9.61   1.95   0.6   6.3   14.0   1.4   0.3   4.0   23.6   1.6   0.4   4.9
0.6   8.64   2.11   0.6   6.6   12.0   1.5   0.3   4.3   20.6   1.8   0.5   5.3
0.7   7.79   2.27   0.7   6.8   10.0   1.7   0.4   4.5   17.8   2.0   0.5   5.5
0.8   7.04   2.43   0.7   7.1   8.50   1.9   0.4   4.8   15.5   2.1   0.5   5.8
0.9   6.38   2.60   0.7   7.3   7.30   2.0   0.4   5.0   13.7   2.3   0.6   6.1
1.0   5.79   2.76   0.7   7.5   6.30   2.2   0.4   5.2   12.1   2.5   0.6   6.3

2006 DRILLING PROGRAMME

The 2006 programme cost US$2.5 million and has increased the overall gold
equivalent ounces by 524,000 ounces at a cost of US$4.80 per ounce. It focussed
on upgrading and extending the Main Ore Zone and the initial testing of targets
at Zheng Guang North and South.

2007 EXPLORATION PROGRAMME

The 2007 exploration programme is scheduled to commence in May and will focus on
infill drilling the Main Ore Zone for grade control purposes and further testing
of prospects at Zheng Guang North, South, East and other areas with a view to
increasing resources.

Exploration of the 20 km2 Zheng Guang exploration licence is considered by the
Company to be at a very early stage and whilst the immediate focus is to bring
the project into production the potential to generate significant further
resources should not be underestimated.

LOOKING AHEAD

Leyshon's strategy is to rapidly bring Zheng Guang into production and to
increase the joint venture's exploration licence holdings over an area it
believes to be host to a large mesothermal and epithermal gold system which has
yielded considerable alluvial and surface gold, but as yet has been unexplored
by modern exploration methods.

Metallurgical testwork programmes, process route design, mine engineering design
and approval processes are well underway and the results will be reported on
shortly.

Managing Director Paul Atherley commented:

"The resource upgrade has confirmed that Zheng Guang is emerging as one of 
China's most exciting new gold projects and gives us very strong encouragement 
for its immediate development."

For further information contact:


Leyshon Resources

Paul Atherley - Managing Director
Tel: +86 137 1800 1914
Mob: +61 417 475 038

Pelham Public Relations
Charles Vivian
Tel: +44 (0)207 743 6672
Mob: +44 (0)7977 297 903

Candice Sgroi
Tel:+44 (0)207 743 6376
Mob: +44 (0)7894 462 114



Notes to Editors

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.

Leyshon has completed its expenditure requirements to earn its 70% interest 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.

                        http://www.leyshonresources.com


Estimation Methodology

Notes from Hellman and Schofield's report:

1.       The resource estimates are based on reverse circulation (RC) and
diamond drill data supplied by Leyshon on the 22nd of February 2007. The
supplied dataset contains 178 diamond holes and 596 shallow RC holes.
Responsibility for the accuracy of the assay and geological drilling database is
taken by Leyshon.

2.       The diamond drill holes are mostly restricted to the central portion of
the deposit where they cover the central mineralised zone at various
orientations on 50 metre spaced east-west traverses to generally around 330
metres below surface. The vertical RC drilling covers the central area and
portions of peripheral mineralisation, such as Zheng Guang North on a 10 by 10
metre pattern to an average of 27 metres depth.

3.       For all drill phases, only selected portions of drill holes have been
assayed. In the supplied dataset only 38% of diamond drilling and 53% of RC
drilling has been assayed for gold. For early drill phases, not all samples
selected for gold assay were also assayed for zinc and silver.

4.       Leyshon geologists classified un-sampled intervals as potentially
mineralised, or barren on the basis of geological logging. For the current
estimate, "barren" intervals were assigned very low grades (0.004 g/t Au, 0.001
% Zn 0.004 g/t Ag), "potentially mineralised" intervals were assigned null
values, and were not included in estimates.

5.       The mineralisation interpretation used for estimation comprised the
main moderately west dipping mineralised zone, an eastern splay, hanging wall
("golf club") mineralisation, a moderately northwest dipping mineralised zone at
Zheng Guang North, and background generally low grade material.

6.       Leyshon supplied a wireframe representing the base of oxidation for the
central Zheng Guang area which H&S expanded to cover Zheng Guang North using the
supplied drill hole logs to guide the interpretation.

7.       As with previous models, the current estimate uses bulk densities
supplied by Leyshon of 2.51 t/bcm for oxidised material and 3.17 t/bcm for fresh
rock which hosts the approximately 93% of the resource.

8.       Zinc and gold grades are poorly correlated, with a correlation
coefficient of between 0.2 and 0.5 for mineralised domains. Silver and gold are
better correlated with correlation coefficients commonly in the order of 0.8 for
the mineralised domains.

9.       Resources were estimated by Multiple Indicator Kriging with block
support correction. Recoverable estimates for zinc and silver were estimated for
panel proportions estimated above gold cut off grades. In H&S' experience, this
method may overstate the estimated recovered grades where the secondary elements
are poorly correlated. The current estimates may potentially overstate zinc
grades by up to 10%.

10.   For the Indicator Kriging, indicator average grades were generally derived
from conditional bin mean grades with the exception of gold grades for the upper
bin of the fresh main zone for which statistics were biased high by two outlier
composites (431.1 and 318.1 g/t Au). For this domain, the upper bin mean was
determined from a dataset with the two highest grade composites cut to the third
highest value (185.4 g/t Au).

11.   Peripheral, mineralisation such that to the west of the main mineralised
domain is poorly defined by the current broadly spaced diamond drilling. Infill
drilling would be required to improve the accuracy of estimates for this area.

12.   Resource estimates were classified by search criteria and mineralisation
domain. Only panels within the main domain estimated by the first of three
progressively more relaxed search passes were classified as Indicated, all other
panels are classified as Inferred.

13.   RC holes were used only for estimation of resources in peripheral areas
without diamond drilling. For the central area of the deposit, where RC data was
excluded from estimates, a comparative independent conditional simulation model
was constructed from the RC data. The conditional simulation model correlates
well with the MIK estimate, confirming the appropriateness of the excluding the
central RC data from the MIK estimate and providing a valuable comparative check
on the MIK estimate.

The exploration data on which the Mineral Resource estimate is based has been
compiled by Mr Malcolm Wilson who is a member of the Australian Institute of
Mining and Metallurgy.  At the time of its compilation, Mr Wilson was a
full-time employee of Leyshon Resources Limited.  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 this
information in the form and context in which it appears.

The information in this report that relates to mineral resource estimation is
based on work completed by Mr Jonathon Abbott who is a full time employee of
Hellman and Schofield Pty Ltd and a Member of the Australian Institute of Mining
and Metallurgy. Mr Abbott 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 Abbott consents to the inclusion in this
report of those matters relating to mineral resources in the form and context in
which it appears.




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

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