+++++++++++++++++++++++++ The Directors of Leyshon Resources Limited ("Leyshon") are pleased to announce that they have signed the Carpentaria joint venture agreement ("JV") with Mount Isa Mines Limited ("MIM"). The JV covers tenement interests of approximately 7500 square kilometres in the highly prospective Mount Isa region. MIM has agreed to expend up to $6,000,000 over eight years on the properties to earn a 70% interest with the terms of the JV requiring a minimum expenditure of $600,000 over two years before withdrawal.
The Directors consider that this is a significant development for Leyshon as it will allow it to rapidly progress exploration in the Mount Isa region utilising the expertise of a major Australian mining house. Leyshon have already defined nine principal target areas for consideration in the exploration program. The JV provides Leyshon with an immediate opportunity to increase shareholder value through exploration for iron-oxide, copper-gold, and gold deposits in this highly prospective region.
Leyshon recently acquired fifty-six granted tenements and applications covering 8959 square kilometres in the Mount Isa region. Of this tenement package nine granted Exploration Permits (EPM's) and thirty-five Exploration Permit Applications (EPMA'S) covering 1006 and 6532 square kilometres respectively are included in the JV with MIM. The region is recognised as one of the world's most significant mineralised provinces for base metal occurrences that include stratabound lead-zinc-silver deposits (Mount Isa, Century) and intrusion related iron oxide copper gold ("IOCG") deposits (eg, Ernest Henry). Other operating mines in the region include Cannington, Selwyn and Osborne.
The JV gives MIM management of the tenement areas under theterms described below. Data compilation, target ranking and program planning have already been completed. Field exploration has commenced and includes mapping, sampling and an extensive IP survey over the Turf Club Shear zone on the Mount Avarice and Mount Marathon EPMs, located thirty-five kilometres to the southwest of the Ernest Henry Mine. The terms of the JV require a minimum expenditure by MIM of $600,000 over two years before withdrawal, and the option to spend an additional $2,400,000 for a total of $3,000,000 over five years to earn 51% of the properties. MIM can then earn a further 19% by expending $3,000,000 over three years to advance to 70% of the properties.
Seven of the nine principal target areas defined by Leyshon are focussed on locating IOCG deposits and include the Base and Magazine anomaly on the Mount Avarice EPM forty kilometres to the southwest of the Ernest Henry Mine. This anomaly includes drill intercepts of up to 0.4% copper and 0.26 g/t gold over 22m, significant magnetite, biotite and red-rock alteration and prospective structural geological setting. Additional targets presented by Leyshon focus on multi-element anomalism and similarities to Mount Isa and Century type lead-zinc-silver mineralisation and Tick Hill gold mineralisation.
It is anticipated that drill testing of suitable, geophysical anomalies will commence in the September quarter. The Directors are pleased that the Agreement was completed on terms favourable to all parties and the progress that MIM has already made in its assessment and testing of targets within the JV tenements.
A copy of the Map is available in PDF format on www.asx.com.au. Alternatively it is available for purchase from ASX Customer Service on 1 300 300 279.
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