Drilling Results

RNS Number:1238V
Leyshon Resources Limited
05 December 2005


LEYSHON RESOURCES LIMITED

ZHENG GUANG GOLD PROJECT'S DEVELOPMENT POTENTIAL ENHANCED BY SIGNIFICANT DRILL
RESULTS

Leyshon Resources Limited ("Leyshon") (ASX and AIM : LRL) today reports assay
results from over 88% of a 12,100 metre diamond drilling programme at the Zheng
Guang gold project in the highly mineralised province of Heilongjiang, northeast
China.

In January 2004 Leyshon created the Province's first Sino Foreign Mining Joint
Venture when it entered into an agreement with the Heilongjiang Bureau of
Geology and Mineral Resources to explore and develop the recently discovered
Zheng Guang gold project.

Following last year's highly successful 4,500 metre diamond drilling programme
this year's programme comprised vertical and angle drilling on the Main Ore Zone
to an average depth of around 200 metres and the excellent results received have
confirmed the project's near term development potential.

Significant gold assay results received from the latest drilling include:

ZGD049 20m at 3.52 g/t from 231m
ZGD054 12m at 3.49 g/t from 1m
ZGD056 2m at 18.18 g/t from 11m
ZGD060 9m at 7.82 g/t from 187m
ZGD064 14m at 4.32 g/t from112m
8m at 7.84 g/t from137m
9m at 5.78 g/t from 164m
ZGD074 45m at 3.49 g/t from 72m
ZGD079 6m at 14.62 g/t from 71m
inc 2m at 37.92 g/t
7m at 5.71 g/t from 134m
ZGD082 2m at 91.26 g/t from173m
ZGD085 9m at 4.29 g/t from 42m
2m at 13.32 g/t from 93m
ZGD086 8m at 5.40 g/t from103m
ZGD088 9m at 4.97g/t from 117m
3m at 7.49 g/t from 144m
ZGD100 6m at 24.31 g/t from 66m
inc 1m at 88.72g/t
inc 1m at 32.75g/t
2m at 65.22 g/t from 84m
inc 1m at 120.55g/t


The gold assays have been prepared and reported by the Qiqihar Bureau of Geology
and Mineral Resources laboratory Qiqihar, Heilongjiang, PRC. SGS-CSTC Standards
Technical Services (SGS), Tianjin, PRC are currently undertaking check assay
verification work and Maxwells Geoservices of Australia will provide a validated
database with QA/QC assessment to allow a JORC compliant resource estimate to be
prepared.

Feasibility Studies have commenced under the management of resource engineering
company Ausenco Ltd of Brisbane, Australia. Ausenco has recently opened an
office in Beijing and is managing the engineering, design and construction of a
large gold project in Southern China which is combining low Chinese costs with
the latest engineering technology.

The brief for Ausenco is to prepare a Feasibility Study for the immediate
development of the near surface Main Ore Zone taking advantage of low Chinese
capital and operating costs with a view to creating a long term sustainable
operation capable of fully exploiting the resource potential of the project.

As expected with the mesothermal style of the Zheng Guang mineralization, there
are significant base metals associations and in this case there is a strong
correlation between gold grades and the zinc (and silver) grades reported in the
assays. Zinc grades range up to 12% and silver up to 65 grams per tonne. The
copper and lead associations are sub economic.

The zinc occurs as sphalerite which is the most common economic zinc mineral and
is readily amenable to recovery by flotation. An example of the close
association of gold, zinc and silver is shown in the following table which
represents a consecutive zone of 7 metres of core:

Au (g/t) Ag (g/t) Zn (%)
0.24 2.37 0.184
0.95 8.01 0.506
5.80 32.20 2.997
1.69 10.16 1.788
7.65 35.30 4.068
0.48 4.46 0.127
0.07 3.00 0.070

The economic significance of the zinc and silver mineralization will be
evaluated by Ausenco in its Feasibility Studies.

The programme has confirmed the overall size of the Zheng Guang system and has
identified a zone of thicker and/or high grade mineralization trending towards
known mineralization at Zheng Guang North located. This 1.25 kilometre zone will
be the immediate focus for the next drill programme as will the large
geochemical anomalies at Zheng Guang North - Southern Extensions, West and East.

The Directors are very encouraged by the results of the drill programme which
have in their view confirmed the development potential of the project.

Managing Director Paul Atherley commented: "This outcome is particularly
pleasing as the Zheng Guang project is the first resource project to be
developed by a Foreign Company in Heilongjiang and will give all parties
confidence in expanding the areas of cooperation."

The Company was recently admitted onto the London Stock Exchange's AIM market
with Seymour Pierce as its nominated adviser and broker. Mining Analyst Charles
Kernot - recently awarded Mining Analyst of the Year by the Association of
Mining Analysts in London - has prepared a comprehensive research report on
Leyshon which will be available from 6 December 2005.

Leyshon's strategy is to apply the latest exploration techniques to
underexplored projects in China and its neighbouring countries with a view to
identifying and developing high quality projects. It has an established presence
in China and is one of the few resource companies with its main operational
office in Beijing.

For further information contact:


Paul Atherley - Managing Director Tim Thompson/Elly Williamson
Tel: +86 10 8528 9256 Buchanan Communications
Mob: +61 417 475 038 Tel: +44 207 466 5000

"bonanza" gold vein

Okay 1m intersection only but grading 600.75 g/t gold 445 g/t silver and 5.34% zinc --- now I've never seen that before --- equvalent of 19oz gold 445 g/t silver and 5% zinc per tonne !!!

Already looks low valued on intial inferred resource (1.2m oz gold equivalent) before this and August drill finds. Ore body still open and apparently improving....

more drills -- earlier in week

current resource 1.2m oz --- mnanagement confident of big upgrades but mkt cap c26m makes ORM look expensive !!

more gold 6m below surface away from main ore zone -- I could dig it out myself at that depth

Elsewhere, still waiting final drill holes from main orebody - so delay here might not be so good -- still all news from here points to decent - big - upgrade in rescoures

Mkt cap c30m -- I'm guessing at 1moz proven and probable is worth c25m --anyone help me here as this is just a conservative guess. So if these guys can double the resource size to 30p price target looks very achievable

100m of gold at good grades -- look at the silver and zinc too !!

Orebody still open. Cheap production costs Truly likeable stock

Decent funding at 22p effectively underwrites share price there. Given size of co and pending news on resource size update those institutions going on board must see a sizeable uplift in resources and expect 50% plus return on their cash in 12 months or so.

I am into this stock after I checked the internet
site when it racked five increase days on ADFN Top Gainers.

probably enough for now but still looks nice

been sitting still for a few weeks.

More confirmation today, ore body still open in 2 directions PLUS "may have discovered additional resource in FIRST of our targets to be tested outside the Main Ore Zone"

Revised resource estimate in February --- should be encouraging

so where is the revised resource?

Early Feb was expected. Could it be they are having difficulty counting all of the millions of gold oz's in the deposit :-)

Share price suggests patience waning or ozzie insider dealing

In the dark obviously, but surely, based on drills, when the resource is announced this stock is heading to 50p PDQ

Probably find out next week --- early March !!

Mid March and still waiting .... it must be all those zeros going on at the end

Resource results out

Not bad but I was hoping for over 2moz

So while stock still cheap others are now cheaper. It does have some decent exploration upside and will probably move towards 50p longer term, at the mo expect it to trad water until new finds or the mine is in production

What has happened in the last three days to put them into freefall?

See point above avsec --- plenty of others cheaper now the results out and size of resource good but not great. Treading water for now