RNS Number : 5760X
  Leyshon Resources Limited
  26 June 2008
   

    26 June 2008 

    Zheng Guang Gold Project 

    Awarded Environmental Approval

    Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to advise that Environmental Approval has been awarded for the Zheng
Guang gold project in Heilongjiang Province Northeast China.

    The approval was awarded in the provincial capital Harbin by the Heilongjiang Environmental Protection Authority and follows two years
of detailed work undertaken by Leyshon's joint venture partner, the Qiqiha'er Brigade of the Heilongjiang Bureau of Geology and Mineral
Resources together with Beijing General Institute of Mining and Metallurgy and other independent consultants on behalf of the Sino Foreign
Joint Venture.

    The work included a baseline environmental monitoring programme, hydrological testing, land usage, fauna and flora and other studies.
The final reports were subject to peer group and expert panel reviews. No significant environmental issues were identified in the studies.

    Leyshon's strategy is to combine the benefits of low Chinese capital and operating costs with the latest Australian design and
management. The Company is bringing international standards of environmental management to the joint venture and in particular is pleased to
introduce an Australian designed process that will include plant water recycling, tailings dam and waste dump management techniques.

    The joint venture has now secured a number of major approvals which will allow development of the project to progress rapidly. Access
road construction has commenced and the 16 kilometre high voltage power line and on site civil construction work are expected to commence
shortly. 

    Paul Atherley, Managing Director of Leyshon commented:

    "The Environmental Approval is a very important approval as it paves the way for all other necessary approvals to be granted and allows
us to accelerate the development of the Zheng Guang gold project."
    
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 297903

    James MacFarlane
    Tel: +44 (0)207 743 6672
    Mob: +44 (0)7841 672831

    Seymour Pierce 
    Jonathan Wright 
    Tel: +44 (0)207 107 8000 

    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. 

    Changchun Design Institute has recently reported that the capital cost estimate for the 1.5 million tonne per annum combined carbon in
leach and flotation circuit process plant is RMB323 million RMB (US$46 million). Orders have been placed for two 4.6 metre diameter ball
mills at a cost of RMB15.2 million (USD 2.1 million) and a RMB12.1 million (USD 1.7 million) order has also been placed for the supply of a
700 tonne per hour Nordberg crushing circuit. 

    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.


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