Leyshon Resources (AIM/ASX: LRL) Zheng Guang project in northeastern China had yet more encouraging news for investors this morning. Recent metallurgy tests confirmed that the company would be able to produce a high grade zinc concentrate with gold and silver metal from a single ore type. This is a considerable boost to the mine economics, as Leyshon will not have to separate the ore types before treating which will benefit mining costs and grade control. Ongoing testing has improved recoveries of gold and zinc sulphides to 87%, while the oxide ore testing is currently recovering 89% of gold and 74% of silver.
Managing Director Paul Atherley commented: "We are delighted with these results. The ability to bulk mine a single ore type and produce gold, silver metal with a saleable high grade zinc concentrate is very encouraging. It will also be a very straightforward process route to allow the Company to bring to bear the full benefits of low Chinese capital and operating costs to the project."
Despite the positive update, shares in Leyshon slipped 2% to 23.5 pence.