high-grade gold mineralisation

Leyshon hits high grade Heilongjiang gold


Rebecca Keenan


Tuesday, November 16, 2004
LEYSHON Resources has hit high-grade gold mineralisation at its Zheng Guang gold project in northeast China, with the results expected to ensure an overall upgrade of the prospect.

Intersections included a standout 24m grading 28.6 grams per tonne gold – comprising 6m at 93gpt gold from 90m and 11m at 10.9gpt gold from 79m – from a thick zone of intense hydrothermal brecciation in the west of the prospect.

The company said the results suggest the system is higher grade than first anticipated.

Leyshon is working towards completing a bankable feasibility study on the project by next year. The Australian company has been working at Zheng Guang since May 2004 with the Heilongjiang Bureau of Geology and Mineral Resources (HLJ-BGMR) under the Black Dragon joint venture.

It is now waiting on assays from the last program and will then revise the geological model of the deposit. Significantly initial testwork undertaken by HLJ-BGMR is said to have indicated that the ore is free-milling.

Fieldwork is planned to commence early in the new year, following up high grade zones and testing ore zone limits.

Leyshon managing director Paul Atherley is currently in Beijing at the China Mining 2004 conference. A presentation given by Atherley at the conference said Leyshon was in joint venture discussions regarding two high grade projects in the east of the Heilongjian province.

Leyshon shares were up 2.4% at 42c in midday trade.
be good