Elissa Resources Ltd.
TSX VENTURE : ELI

Elissa Resources Ltd.

March 30, 2011 08:01 ET

Elissa Resources Plans Additional Geophysical Survey at its Thor Rare Earth Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2011) - Elissa Resources ("Elissa" or the "Company") (TSX VENTURE:ELI) Following successful results from a district-scale detailed high-resolution airborne magnetic geophysical survey completed in November, 2010, Elissa Resources ("Elissa") announced today it is planning to conduct a ground geophysical (magnetic) survey on specific sections of its 100% owned Thor Rare Earth Elements (REE) Project, in southern Nevada. The project lies 26 km (16 miles) east of the Mountain Pass REE mine and processing plant, which are currently being re-opened by Molycorp Minerals. At Thor, multiple samples collected during extensive exploration programs in 2010 returned Rare Earth Element analyses ranging from anomalous to 10.6% REE. Mapping and mineralogy studies indicate that the REE mineralization at Thor occurs in large discrete shear zones as phosphate minerals containing significant amounts of very scarce and valuable Heavy Rare Earth Elements (HREE). This stands in contrast to the neighbouring Mountain Pass Mine, where the REE occur within a large igneous carbonate body as carbonate minerals containing substantial amounts of Light Rare Earth Elements (LREE) but a paucity of HREE.

Elissa has identified significant REE mineralization at Thor in nine widely separate prospect localities in three distinct discovery zones referred to as the Lopez Trend, the Black Butte area and the NED area. A fourth area of interest is the Santos Trend. Work carried out to date includes a high-resolution ultralight airborne magnetic survey, surface mapping, extensive ground radiometric surveys, satellite imagery studies, channel sampling of historical surface workings and other limited surface exposures, and detailed petrographic studies. The airborne magnetic survey was useful in helping delineate the Lopez Trend and the Black Butte area, but due to rugged terrain difficulties was not as effective in enhancing or defining the NED target area.

The Lopez Trend, a mostly covered, 2.4-km long structural zone from 50 to 150 m wide, is a compelling drill-ready target area. The zone is intermittently marked by anomalous radioactivity and/or REE-bearing samples along its length. Elissa's 2010 exploration programs suggest that the Lopez Trend may be continuous through the covered areas. Later this year, Elissa plans to complete a shallow drill program to test the Lopez Trend. There are indications that the sub-parallel Santos Trend, lying in a covered alluvial valley to the west, may represent a second similar, shallowly buried mineralized zone.

To date, Elissa has collected 127 total rock samples from the Thor Project, mostly continuous channel samples taken across widths of one to several metres from limited rock exposures throughout the project area. More than half of these samples (70 total) returned assays showing anomalous (> 0.1%) to very significant (> 0.5%) amounts of REE, representing various targets within each of the project's separate discovery zones. Of these samples, 22 returned assays of 1.3% to 10.6% (average 2.6%) total REE, with the more valuable HREE comprising a significant fraction (3 to more than 9 percent, average 5.3 percent) of the total REE contained in the samples. 

The proposed detailed ground magnetic survey will focus primarily on the NED target area, 1.6 km east of the northern end of the Lopez Trend. Samples taken in the NED area in 2010 were limited to a single outcrop comprised of biotite-rich, dark-coloured igneous rock that averaged 1.50% total REE. Petrographic studies indicate the unusual rock type is magmatic in origin and that the REE-bearing minerals occur as disseminated inclusions in the biotite. Indications are that the outcrop may be the surface expression of a much larger concealed igneous body. The magnetic survey will help define the perimeters of this REE-bearing body. The REE mineralization, like that in the Lopez Trend and Black Butte area, is enriched in the more valuable HREE.

During the third quarter of 2010, the Thor project was separately visited by two independent, respected REE specialists, Dr. James Clark, a geological consultant with extensive background and expertise in REE deposits, and Dr. David Jessey, a Professor at California Polytechnic, who is very familiar with the geology and REE mineralization of the Mojave Desert Region. The conclusions are that the apparent size and tenor of the Lopez Trend discovery zone may be generally similar to other REE vein systems that comprise currently attractive, viable exploration targets.

Elissa Resources also wishes to report that as of March 28, 2011 its shares commenced trading on the TSXV under the trading symbol ELI. Elissa Resources was formed out of the successful 2010 Prophecy Resource Corp. / Red Hill Energy merger whereby shareholders of Red Hill Energy received shares of Elissa Resources on a 1 for 4 basis. (Please see Prophecy Resource Corp. / Red Hill Energy April 7, 2010 news)

A more in-depth analysis of the prior exploration programs at Thor including specific details of both HREE & LREE assay results can be viewed in a recently completed NI 43-101 Technical Report available on www.sedar.com, and in Elissa's November 16, 2010 news release available at www.elissaresources.com.

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

ON BEHALF OF THE BOARD OF DIRECTORS of Elissa Resources Ltd.

Paul McKenzie, President and CEO

About Elissa Resources Ltd.

Elissa Resources is advancing its 100% owned Thor light and heavy rare earth minerals property in Nevada, 20 miles (32km) east of Molycorp Minerals' Mountain Pass deposit, California. Additionally Elissa has an option to earn a 100% interest on both the Sage Creek and St. Elmo gold projects also in Nevada. The Company also has 100% ownership of a prospective lithium property in Nevada.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans, objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development, and uncertainties in connection with anticipated commodity prices for minerals, growth of worldwide market demand, exploration capital requirements, length of asset life and availability of qualified personnel, among others. As a result, actual results may vary materially from those described in the forward-looking statements.

"Neither The 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 or accuracy of this release."

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