LRL Leyshon Res

RNS Number:8384C
Leyshon Resources Limited
28 August 2007


28 August 2007
                      Accelerating the Zheng Guang project
                                 to Production

Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to announce
that it is rapidly advancing the Zheng Guang gold zinc project supported by a
strong cash position. It is on schedule to develop the project as the first ever
Sino Foreign owned gold mine in the mineral rich province of Heilongjiang,
northeast China in 2008.

The diamond and the reverse circulation drilling programmes are progressing well
ahead of schedule and are expected to upgrade and extend the 1.21 million ounces
of gold, 3.72 million ounces of silver and 94,000 tonnes of zinc resource
estimate in early 2008.

Diamond Drilling Programme

The diamond programme has already completed 81 holes for 15,869 metres of the
planned 17,000 metres and is infilling the Main Ore Zone to a hole spacing of 25
by 40 metres which is expected to upgrade the resource to Measured and Indicated
status.

The first 4 holes of the planned 85 holes reported to date have indicated
thicker mineralization than expected on the western boundary of the Main Ore
Zone. Logging and sampling of core from drill holes has continued and assay
results for the next holes are expected shortly.

Reverse Circulation Programme

Mineralisation has been discovered on all seven geochemical targets tested by
the reverse circulation programme. These discoveries are being followed up with
diamond drilling and give strong encouragement that additional resources can be
delineated on the licence area.

The reverse circulation drilling, which to date has completed 15,783 metres of
the planned 22,000 metre programme, includes a sterilization programme over the
proposed areas for the process plant, tailings dam and other surface facilities.
These facilities are in the engineering design phase and scheduled for
construction in early 2008.

A regional programme designed to identify immediate drill targets has commenced
on the recently acquired 80 km2 exploration licence adjacent to the eastern
boundary of the Zheng Guang licence. Previous work on this licence has indicated
the potential for porphyry copper style mineralisation as well as gold.

Further Licence Applications

Three further exploration licences adjacent to the Zheng Guang project are at
the final stage of a lengthy approval process. These licence applications cover
an area of approximately 85 km2 and have been applied for directly by the joint
venture company, Black Dragon Mining Limited. The area covered is considered to
be prospective for high grade gold and porphyry copper mineralisation.

Project Design

Specialist metallurgical consultancy Metallurg of Perth, Western Australia has
developed carbon in leach and flotation process flow sheets based on extensive
laboratory testwork by AMMTEC of Western Australian. This treatment process will
provide for the production of gold and silver metal along with a high grade zinc
concentrate.

Whittle pit optimisation studies on an open pit operation have been completed in
Beijing by Australian mining specialist Micromine and are based on the March
2007 JORC compliant resource estimate by Hellman and Schofield Pty Ltd of
Australia.

Environmental base line studies, soil and water conservation, health and safety
and other regulatory reports are well advanced. Geological reserve and
feasibility studies completed by the joint venture in accordance with regulatory
requirements have been completed and approved by the relevant authorities.

Changchun Design Institute, one of China's most respected metallurgical and
mining consultancies, has commenced engineering design for the project under the
direction of a highly experienced project construction team lead by recently
appointed Project Manager, Dr Ye Dong Ping.

As previously announced, the Company has entered into a cooperation agreement
with the Municipal Government of AiHui District under which the project has been
assigned a top priority status and will expedite approvals for land use, access
road construction, water and electricity supply.

The project benefits from being located in a well established coal and copper
mining community with excellent infrastructure including a rail connection to
the national network, grid power, water and a range of mining contractor
services.

The project is expected to benefit further from the recently announced US$8
billion planned infrastructure investment by the provincial government in the
surrounding area. This will coincide with low energy costs resulting from the
expansion of Heilongjiang's electricity generating capacity. The average price
of electricity in Heilongjiang is reported to be half of that in southern
provinces of China.

The Company remains fully engaged in China with its Managing Director and Chief
Operating Officer based in the main operating office in Beijing. Its policy of
full engagement with the local community is bearing fruit as negotiations with
local farmers and other affected parties for land acquisition and access are
well advanced and progressing well.

Managing Director, Paul Atherley commented:

"We are set to receive the majority of assay results from this year's diamond
drilling programme and are delighted that all seven of the geochemical anomalies
we tested with the shallow reverse circulation drilling returned positive
results.

We await the results from the follow up diamond drilling which will test the
extent of this mineralisation with some anticipation.

The Company has US$16 million in cash and with the project engineering and
approvals well advanced we are in an excellent position to commence construction
of China's next foreign owned gold mine in early 2008."

For further information contact:

Leyshon Resources Limited
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

Seymour Pierce
Jonathan Wright
Tel: +44 (0)207 107 8050

http://www.leyshonresources.com

Background Information

Leyshon is fully engaged in China with its main operating office in Beijing its
Chairman, Managing Director and Chief Operating Officer all based in China and
with over 80% of employees who are either native Chinese or Mandarin speaking.

The company is rapidly progressing the Zheng Guang gold zinc project to
production status and is aiming to jointly develop it as first ever Sino Foreign
owned mine in the mineral rich province of Heilongjiang's in 2008.

The project benefits from exceptional infrastructure as it is located within a
well established coal and copper mining community with rail, power, water and
mining contractor services immediately available.

In March 2007 Hellman and Schofield Pty Ltd of Australia reported a JORC
compliant recoverable resource estimate of 1.21 million ounces of gold, 3.72
million ounces of silver and 94,000 tonnes of zinc of which 50% was reported in
the Measured and Indicated category.

The gold equivalent of this resource estimate is over 1.7 million ounces and the
discovery cost to date has been less than US$5 per ounce reflecting the lack of
modern exploration in a major gold belt which has produced over 20 million
ounces from mainly surface and alluvial methods.

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.

Competent Persons Statement

The information in this report relating to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Richard Seville, a
director of the Company, who is a member of the Australasian Institute of Mining
and Metallurgy.

Mr Seville 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 Seville 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
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