RNS Number : 7371A
  Leyshon Resources Limited
  06 August 2008
   





    6 August 2008
    ZHENG GUANG GOLD PROJECT

    Ground Breaking Ceremony 

    Leyshon Resources Limited ("Leyshon") (AIM & ASX: LRL) is pleased to announce that civil engineering works at the mine site have
commenced at its 70% owned Zheng Guang gold zinc project in the northeast province of Heilongjiang in China. 

    A ground breaking ceremony was held on site on 2nd August 2008 which marked the transition of the project from the development to the
construction phase. 


    http://www.rns-pdf.londonstockexchange.com/rns/7371A_-2008-8-6.pdf

    
    


    Construction Machinery

    The 8.6 kilometre access road that connects the project with the residential town of Heibaoshan, has been completed ahead of schedule.
Land acquisition agreements have been finalised with two forestry departments and three villages affected by the 16 kilometre power line.
Nenjiang Power Bureau will commence installation once the farmers have harvested their crops on the affected fields.

    The project is expected to commission first ore in late 2009 with the first full year of production in 2010. Initially near surface
oxide gold ore will be mined from a low strip ratio starter pit and then treated in a dedicated carbon in leach circuit which will recover
76,000 ounces gold and 214,000 of silver metal. Thereafter gold, silver and a zinc concentrate will be produced from deeper sulphide ores
treated through an expanded flotation circuit.

    At current metal prices the project is expected to generate very strong cash flows from the starter pit over the first five years of the
project's life. Current studies indicate there are up to 15 years mine life from the Main Ore Zone alone. During the first five years, over
US$25 million will be spent on exploration to delineate additional resources on the 130 km2 of highly prospective tenement holdings. These
will be mined separately and blended with ore from the Main Ore Zone and are expected to result in a long mine life project with sustainable
low operating costs. 
    
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

    John McLeod
    Tel: +44 (0)203 170 7442
    Mob:+44 (0)7886 920436

    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. 

    Following recent approval from the Heilongjiang environmental Authorities development has commenced  the Zheng Guang gold zinc project
and is aiming to become the first ever Sino Foreign owned mine in the mineral rich province of Heilongjiang when it comes into full
production in 2010. 

    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. 

    The recently reviewed capital cost estimate for the 2.25 million tonne per annum combined carbon in leach and flotation circuit process
plant is RMB369 million (US$52.6 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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