Thursday, 29th November 2007 (1939 views)

Drilling results at the Zheng Guang mining project are encouraging, according to Thomson Financial.

Mining firm Leyshon Resources reported that a resource estimate for the site indicates a gold equivalent resource in excess of 1.7 million ounces.

Following the ahead-of schedule completion of reverse-circulation and diamond drilling operations on the site, the company is currently working to further advance processes at the project, where construction is expected to begin in 2008.

According to company reports, new feasibility study results for the site have converted more than half of the inferred gold resource estimate into the indicated category, increasing the total gold-equivalent content at the site by 43 per cent.

Once complete, the project will be the first gold mining operation in the Heilongjiang province to be owned by a foreign company.

Recently, the managing director of Leyshon Resources, Paul Atherley, signed a 20-year financing and development agreement for the property, where a carbon in-leach processing plant is currently being planned.

When completed, the plant could produce up to 100,000 ounces of gold annually.

 

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