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Additional Information

Market:	ASX \| AIM
Sector:	Gold Mining
EPIC:	LRL
Latest Price:	0.19 (-2.50% )
52-week High:	0.38
52-week Low:	0.18
Market Cap:	48.07M

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Leyshon Resources

Leyshon Resources (ASX: LRL) 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 considering sale of Zheng Guang gold project

Monday, February 02, 2009 by Andre Lamberti

Leyshon Resources Ltd said it is considering selling the Zheng Guang gold project in Heilongjiang in northern China to realise value from the business.

The company is considering various options to fund the development of Zheng Guang. In the current environment, however, there is no guarantee that financing can be finalised on attractive terms. It said it has received a number of approaches regarding the potential sale of its interest in the project and has progressed these parties under confidentiality agreement.

The planned recommencement of site based activities in April 2009 is subject to the completion of the necessary approvals and funding arrangements.

On the issue of regulatory approval for the operations at Zheng Guang, Leyshon said talks with local farmers and other affected parties for land acquisition have been completed. The Land Acquisition Plan is now before the Department of Land and Resources and is expected to be approved after Chinese New Year. This is the final approval required ahead of project registration and the issue of the mining licence, both of which are expected in 2009.

The company had A$5.7 million cash on hand at the end of December 2008 and has further reduced its monthly outgoings to less than A$175,000 per month, it added.

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