Elissa Resources Ltd.

Elissa Resources Ltd.

September 01, 2011 09:32 ET

Elissa Resources Discovers Additional Broad Structural Trends At Thor Rare Earth Elements (REE) Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2011) -

  • A strong linear subsurface magnetic high corresponding to the multiple REE surface discoveries along the Thor Project's Lopez Trend has been identified
  • A second, similar magnetic high west of the Lopez Trend (Santos Trend) has been identified
  • Numerous other areas of interest have also identified including several locations corresponding to the Thor Project's "NED" Discovery Zone

Elissa Resources ("Elissa" or the "Company") (TSX VENTURE:ELI)(OTCQX:ELSRF)(PINK SHEETS:ELSRF) is pleased to report that a recently completed ground magnetic geophysical survey at its 100% owned Thor REE Project, Nevada, has identified several previously unrecognized broad structural trends of interest. Elissa's 100%-owned Thor project is located 47 miles (76 km) south of Las Vegas, Nevada, and 16 miles (28km) east of Molycorp Minerals' Mountain Pass REE mine and processing facilities in the neighbouring state of California. Elissa's ground exploration at Thor has to date, discovered significant heavy and light REE mineralization at surface in at least nine widely separate prospect localities in three distinct discovery zones.

"The ground geophysical survey results significantly broaden the overall potential of our Thor REE Project; the comprehensive data is allowing us to finalize phase one drilling locations and has simultaneously opened up new areas of interest" stated Paul McKenzie President and CEO of Elissa Resources. "We intend to drill broad sections of the project's Lopez Trend later this year with other project locations to follow."

Within the surveyed area were potential drill targets discerned from previous extensive exploration mapping and sampling programs and from a district-scale airborne magnetic geophysical survey flown late last year. The new ground magnetic survey data identified two strong linear magnetic highs, one mirroring the project's Lopez Trend, (a 2.6 km (1.6 mile) long structural zone)and the second running parallel and just westward of the first (the Santos Trend). Previous sampling of rock outcrops exposed intermittently along the Lopez Trend returned strongly anomalous to locally high-grade heavy and light REE values (up to 10.6% REE) showing distinct enrichment in the valuable heavy REEs. Eight heavy REE's and five light REE's are present at Thor including dysprosium, yttrium, neodymium and terbium. The close correlation between the surface anomaly along the Lopez Trend and the strong linear magnetic high discovered by the ground survey is enabling Elissa's geological team to finalize their targets for a forthcoming phase one drill program, which will focus on targets extending the entire length of the Lopez Trend.

A second very similar linear magnetic high was revealed west of and parallel to the Lopez Trend in an area entirely covered by alluvium. This second zone, referred to as the Santos Trend, is similar in extent and magnetic intensity to the Lopez Trend. Weak surface radiometric anomalies have been encountered in this covered area, offering potential for possible future Lopez-like REE targets in bedrock at depth. Elissa expects to examine the Santos Trend in more detail on the ground and may test the zone with a secondary drill program early in 2012.

Another area of significance and interest to the Thor Project is the NED target, located 1 mile (1.6 km) northeast of the Lopez Trend. Previous ground work by Elissa geologists found a 52 ft. x 16 ft. (16 m x 5 m) exposure of an unusual dark mica-rich (biotite) igneous rock containing significant amounts of heavy and light REE disseminated in the mica (see Elissa News Release, November 16, 2010, http://www.elissaresources.com/_resources/nr_Nov16_2010.pdf). Petrographic studies indicate that the REE mineralization is possibly magmatic in origin, suggesting that the rock exposure could be merely the small part of a much larger, concealed igneous body. The ground geophysical survey revealed several circular to slightly elliptical mag highs in the immediate vicinity of the NED target. These magnetic anomalies will be carefully examined in Elissa's continuing ground exploration programs at Thor.

Beyond the Lopez Trend, Santos Trend and the NED area, the ground magnetic survey has revealed several other areas warranting further examination. Elissa is very pleased with the resolution and encouraging results of the ground magnetic survey and is considering additional ground geophysical surveys to cover some of the remaining parts of the Thor property block and some of the ground covered by the Company's recent expansion staking program (see Elissa News Release July 11, 2011, http://www.elissaresources.com/_resources/news/2011_07_11_ElissaThorExpansion.pdf). Included in this recent staking is an historical niobium prospect (with possible accessory REE minerals). Field investigations have already commenced at this location, from which assay results will be issued by Elissa Resources in a subsequent news release.

The ground magnetic survey, carried out by Zonge Geosciences Inc. of Reno, Nevada, consisted of 100 km (62 miles) of gridded line traverses covering a 5.7 sq. mile (9.2 sq. km) area within the Thor Project.

The technical information outlined in this news release, has been reviewed and approved by Mel Klohn, PGeo, Director of Elissa Resources, and a Qualified Person as defined in the current National Instrument 43-101.

About Elissa Resources Ltd.

Elissa Resources is advancing its 100% owned Thor heavy and light rare earth element (REE) project in Nevada, 28 km (16 miles) east of Molycorp Minerals' Mountain Pass REE deposit and processing facility, California. Additionally, Elissa has an option to earn a 100% interest on both the Sage Creek (Idaho) and St. Elmo (Nevada) gold projects. The Company is also reviewing and aggressively pursuing REE opportunities in other parts of Nevada and neighbouring states.

On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.

Paul McKenzie, President & CEO

Disclaimer: Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy accuracy of this release. We seek safe harbour.

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