TIDMLRL 
 
RNS Number : 2230Q 
Leyshon Resources Limited 
30 July 2010 
 

 
 
 
30 July 2010 
 
                           JUNE 2010 QUARTERLY REPORT 
 
Leyshon Resources Limited (AIM/ASX: LRL) (Company) announces that during the 
quarter it continued to review and is continuing to undertake due diligence, on 
a number of project investment opportunities, some of which have the potential 
to meet the Company's investment criteria. 
 
As previously stated, the Company remains alive to possibilities both 
internationally and within China. It is currently focusing on coking coal, iron 
ore, copper and gold opportunities in North Western China and Southern Mongolia. 
 
The Company has completed the previously announced due diligence investigations 
into coal assets in the South Gobi district of Southern Mongolia. The 
announcement during the quarter by the President of Mongolia of the suspension 
of the issuance of new licences has created an uncertain investment climate and 
in light of the inability to gain certainty on title and future regulatory 
approvals the Company has decided to monitor the situation before proceeding 
with an investment. 
 
The decision by the Mongolian Parliament to proceed with the construction of a 
railway line from the large undeveloped Tavan Tolgoi coal project 1500 
kilometres north east to Russia during the period 2011 to 2014 rather than 
opting for the more immediate proposed 250 kilometre rail line due south to 
China reflects the ongoing uncertainty Mongolians have in opening up their 
Southern border to rail access. 
 
From a coal project development perspective, this means that in the near term 
Mongolian coal will continue to be trucked to the Chinese border crossings. A 
250 kilometre private toll road from Tavan Tolgoi due south to the Gangqimadao 
border crossing located 200 kilometres north-west of the major steel making 
centre of Baotao in Inner Mongolia is under construction for this purpose. 
 
Based on Leyshon's understanding of the costs of accessing the toll road, 
utilizing the Chinese owned Gangqimadao crossing infrastructure and onforwarding 
coal via a privately owned Chinese rail line to access the northern Chinese 
steel and power markets only investments in those projects hosting higher 
quality coking coals are going to give the Company the return on investment it 
is looking to achieve. 
 
The Company has researched the demand for specific coal types in Northern and 
Western China and notes that whilst there are relatively large quantities of 
semi soft coking coal available to steel mills from both Mongolia and within 
northern China itself, there is a structural shortage of specific types of hard 
coking coal. 
 
The Company is actively exploring for these specific coal types in South Western 
Mongolia and China's most western province Xinjiang. It is actively undertaking 
sampling and undertaking other ground truthing programmes to determine whether 
the exploration projects under review have the potential to host these specific 
coal types. 
 
In addition to the coking coal projects, the Company is actively reviewing 
epithermal gold and copper targets in the major metallogenic Tien Shan belt in 
northern Xinjiang. 
 
The Company continues to receive investment proposals from many locations around 
the world and it actively considers each one in light of its competitive 
advantage of being able to access the Chinese end user market. 
 
The Company remains diligent in its assessment of assets at all times and is 
therefore prepared to commit significant expenditure on due diligence and other 
studies before committing to a transaction. The Company can give no assurance 
that these due diligence investigations and/or discussions will successfully 
conclude in an acquisition. 
 
During the quarter the Company made no purchases under the buy back programme. 
For much of the quarter the Company's share price has traded at or around net 
asset backing with good liquidity in both London and Australia and whilst it 
continues to do so there are no plans to make any further purchases in the near 
term. 
 
At quarter end, the Company had $46.2 million in cash, equivalent to 21.4 cents 
per share and 12.3 pence per share. Aside from those amounts required for 
immediate working capital purposes the cash is held on deposit in Australian 
dollars earning around 6% interest per annum. 
 
 
For further information contact: 
 
Leyshon Resources Limited 
Paul Atherley - Managing Director 
Tel: +86 137 1800 1914 
patherley@leyshonresources.com 
 
Seymour Pierce 
Jonathan Wright 
Tel: +44 (0)207 107 8000 
 
                        http://www.leyshonresources.com 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCEASXEDSXEEEF
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Leyshon Resources Charts.
Leyshon Resources (LSE:LRL)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Leyshon Resources Charts.