Leyshon Resources
Leyshon Resources has a proud history as one of Australia’s most financially successful gold mining companies having produced over 2.7 million ounces from its Mt Leyshon Gold Mine in Queensland and distributed over A$300 million dollars to its shareholders over its 15 year life. Today Leyshon has divested its Australian mining and exploration interests and is focused on the Zheng Guang project in Heilongjiang, northeast China. Zheng Guang has estimated the resource of 1.21 million ounces of gold, 94,000 tonnes of zinc and 3.72 million ounces of silver. The company forecasts annual revenues of 90 mln usd from the project at current metal prices, and EBITDA of 54 mln usd on cash operating costs of some 155 usd per ounce
Leyshon Resources confident of securing finance for Zheng Guang
Leyshon Resources, the AIM and ASX listed mineral development company, jumped 17% after reassuring investors that it still planned to move the 70% owned Zheng Guang Gold-Zinc-Silver project north-eastern China to production.
Shares in Leyshon Resources have been hit hard in recent months, along with many commodity focused businesses, and in particular businesses that require financing to develop an asset.
Today the Company’s Managing Director reminded investors that Zheng Guang will be a low cost gold producer, and that project financing discussions were underway with three banks. The mine is anticipated to commence construction in April 2009, with commissioning scheduled for the end of 2009. Preparatory work on roads, power and sourcing equipment is already well underway.
Capital costs for the project are currently estimated at approximately US$54 million, and once in production, the mine is expected to move into production in 2010, producing 75,000 ounces of gold, 225,000 ounces of silver and 5,250 tonnes of zinc in concentrate for fifteen years at an operating cost between US$250-350 per ounce.
Leyshon also stated that it still has A$7.4 million in cash, as of 30 September 2008, and that it was in financing discussions with “three international banks…with strong balance sheets”.
Other Leyshon Resources articles
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27/11/08 Leyshon Resources - battening down the hatches
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24/07/08 Leyshon Resources is an ultra low-cost gold producer in the making
Other Leyshon Resources news
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11/06/08 Leyshon Resources confirms construction of main access road
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28/04/08 Leyshon Resources upgrades Zheng Guang Project resource
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04/12/07 Leyshon Resources maintains momentum