Thursday, 30th November 2006 (2516 views)

Leyshon Resources has intersected around 100 metres of gold at its project in north-east China.

The company's Zheug Guang project is located in Heilongjiang which is in the north-eastern part of the country and high quantities of zinc are also found throughout the region.

Leyshon has entered into a 20 year agreement with the Qiqiha'er Brigade of the Geology and Mineral Resources and this will hopefully enable Leyshon to finance, develop and mine at the Zheug Guang project.

Production will hopefully commence in 2007 with Leyshon holding on to a 70 per cent share of the project. Once it has begun, the company expects to rapidly expand until it produces 100,000 ounces of gold within three years.

Zheug Guang was discovered in 2000 through a regional stream sediment sampling programme and follow up work was completed two years later including testing the shallow potential of the deposit.

Broad zones of mineralisation are present and encouraging widths of higher-grade material are still open to depth.

 

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