LRL Leyshon Res

RNS Number:7146J
Leyshon Resources Limited
12 December 2007



12 December 2007

                     Three New Exploration Licences Awarded

Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to announce
that three additional exploration licences have been issued by the Ministry of
Lands and Resources covering a highly prospective area adjacent to its Zheng
Guang gold zinc project in Heilongjiang, northeast China.

The new licences (EL1, 2 and 3) cover an area of 83 square kilometres
close to and along strike from the Zheng Guang project. The licences have been
issued to the sino foreign joint venture company, Black Dragon Mining Limited,
and bring the total area now held by it to 130 square kilometres.

The new licence areas cover the highly prospective gold and base metal belt that
extends from the Duobaoshan copper-gold mine in the northwest through Zheng
Guang and beyond into the coal mining area in the southeast.

The licences have an initial term of three years, are renewable and have a
minimum annual expenditure of US$22,000 in year 1 rising to US$112,000 in year 3
onwards. The joint venture is also pursuing the application of a number of
additional licences in the area.

A major regional exploration programme for 2008 is currently being prepared by
consulting geologists CSA Australia Pty Ltd which will target large
porphyry-style gold-copper deposits, Zheng Guang style gold and base metal
carbonate deposits and high grade epithermal gold deposits.

Exploration Potential

Extracts from a recently prepared report on the project area by independent
consulting geologist Glenn Whalan are provided below to give an understanding of
the exploration potential of the new licence areas.

Licences EL 1, 3 and 4 cover the south east extension of a highly mineralised
structural corridor which, in addition to the Zheng Guang deposit, hosts the
Duobaoshan copper gold molybdenum and Tongshan copper gold projects, both of
which are currently in development by Chinese groups.

Licence EL 2 is situated outside of this corridor and covers what is believed to
be part of an adjacent, parallel structural corridor.

The structural corridor corresponds with the south east plunging Duobaoshan
anticline. All three deposits are intimately associated with intrusives emplaced
in zones of weakness along the axis of this anticline. These intrusives are
considered to be responsible for porphyry-style copper gold mineralization of
the two copper projects.

Following emplacement of the intrusives, rifting formed the east - west trending
Heibaoshan Basin which contains a number of coal deposits which are currently
being mined. Quaternary alluvium filled the larger valleys and has been
extensively mined for alluvial gold.

This high concentration of intrusives, following a known mineralized trend,
makes the Zheng Guang exploration licence and the new exploration licences EL 1
and 4 particularly prospective for locating porphyry copper gold and Zheng Guang
style gold zinc base metal carbonate deposits.

From the time that the Duobaoshan deposit was discovered close to the surface in
the 1960's, Chinese government geologists recognized the potential of this area
for additional porphyry deposits but have undertaken very little drilling.

Several examples of weak copper mineralization have been noted within the
project area and are associated with "tell-tale" propylitic alteration which
typically surrounds porphyry deposits.

Propylitic alteration forms a halo and a cap around many porphyry deposits
worldwide yet almost never hosts economic mineralization. If present, economic
mineralization may be located by drilling through these caps into the more
central zones.

While porphyry copper gold deposits represent a particularly attractive target
in this area, Zheng Guang style gold-zinc deposits will also to be targeted.
This base metal carbonate style of mineralization tends to be associated with
porphyry systems and represents a more distal phase of metal deposition.

Leyshon's experience and expertise with the Zheng Guang deposit is expected to
prove an asset when exploring for similar deposits within the new licence areas.

Within licence EL 3, epithermal gold mineralization is targeted, either
associated with the porphyry system or as having evolved from thermal activity
associated with the rift basin. A further target of strata-bound gold enrichment
in the basal carbonaceous sequences of the Mesozoic basin, where it is
intersected by the Duobaoshan structural corridor, is of interest.

Alluvium-filled valleys, some of which have been extensively mined for alluvial
gold, cover significant portions of all the Licence Areas. It is unlikely that
these valleys have been adequately explored to date and it is possible that this
alluvium may overlay blind mineral deposits that follow the same trend.

Managing Director Paul Atherley commented: "Whilst our immediate priority is to
bring the Zheng Guang mine into production and to prove up additional resources
on the Zheng Guang licence itself, a regional generative programme is being
prepared for 2008 which will test this highly mineralized but underexplored gold
and base metal belt."

A complete copy of the release, including diagrams, can be found on Leyshon's
website: www.leyshonresources.com. 

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. Over
80% of employees 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 the first ever Sino
Foreign owned mine in the mineral rich province of Heilongjiang 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.

Hellman and Schofield Pty Ltd of Australia has reported a JORC compliant
resource estimate of 1.21 million ounces of gold, 3.72 million ounces of silver
and 94,000 tonnes of zinc. Full details of the resource estimate are included in
an AIM/ASX release dated 19 March 2007.

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

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