Leyshon Resources Limited (LRL)

Leyshon Resources Limited (LRL)

Leyshon Resources Limited (LRL) - Exploration Programme Commences Targeting Gold and Porphyry Copper

Leyshon Resources Ltd is pleased to advise that the 2008 exploration programme has commenced at the Zheng Guang gold project in Heilongjiang, northeast China.

The 35,000 metre drill programme will continue with resource development drilling at Zheng Guang and will embark on a major regional exploration programme on the recently acquired exploration licence areas.

The programme will cost 34.75RMB (US$4.96 million).

The Main Ore Zone remains open along strike to the north and south and at depth. The resource development drilling programme comprises 14,700 metres of diamond drilling and 8,800 metres of reverse circulation drilling.

This follows on from the 2007 programme which increased the overall resource of the Main Ore Zone by approximately 25% from 24 to 30 million tonnes containing 1.16 million ounces gold, 4.5 million ounces silver and 120,000 tonnes of zinc and increased the Measured and Indicated resources by approximately 60% from 10 to 16 million tonnes.

Following structural interpretation of the core from the 2007 drilling programme, a new model for the mineralisation has been developed by the Company’s geological consultants. This has highlighted the potential for en echelon pods of mineralisation to occur within dilation zones within a north-west trending regional shear. The Main Zone at Zheng Guang has been interpreted as one of these dilation zones.

The regional exploration programme on the recently granted 120 km2 licence areas will represent the greatest regional exploration effort by the joint venture to date and if successful will greatly enlarge the scope and scale of activities.

The new licence areas will be explored for porphyry-style gold-copper deposits, Zheng Guang style gold and base metal carbonate deposits and for epithermal gold. The programme is designed to evaluate the licence areas by satellite imagery, aeromagnetic survey, reconnaissance soil sampling and follow up reverse circulation drilling of soil anomalies.

Of particular interest will be three potential porphyry copper targets, one which is located on the Zheng Guang licence itself and the other two on the 4th Exploration Licence located approximately 5 km from the planned mill site. These prospects have been identified by broad spaced soil geochemistry and will be followed up with closer spaced soil sampling and reverse circulation drilling.

The project area is dominated by the Duobaoshan and Tongshan porphyry copper gold deposits located 8 kilometres to the north-west of Zheng Guang, both of which are currently under development. Previous mapping by the Heilongjiang Bureau of Geology and Mineral Resources has indicated that these porphyries intrude the Late Ordovician formations which also host the Zheng Guang deposit, however little follow up work and very limited drilling has been undertaken to explore for them.

The Company continues to make good progress on a number of fronts. It is in the final stages of gaining approval to commence project construction and has construction management and contractor teams ready to mobilise to site. Construction of the access road and power line are expected to commence shortly. Detailed engineering is well advanced and detailed mine design is well under way following the release of the recently announced upgraded resource estimate. Financing is well advanced and is expected to be finalised by the end of this month.

For more information pleae go to www.leyshonresources.com

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