Elissa Resources Ltd.
TSX VENTURE : ELI
OTCQX : ELSRF

Elissa Resources Ltd.

June 19, 2012 08:00 ET

Elissa Resources Reports Phase One Drill Results From Thor REE Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2012) - Elissa Resources Ltd. ("Elissa" or the "Company") (TSX VENTURE:ELI)(OTCQX:ELSRF) is pleased to report the preliminary results of its first-pass drilling program on its 100%-owned Thor REE (Rare Earth Element) Project in southern Nevada, located about 14 miles (23 km) east of Molycorp's Mountain Pass Rare Earth mine and processing facilities in nearby California. The program was designed to examine at depth the host rocks and mineralization associated with numerous, locally high-grade, REE surface showings from sporadic rock exposures scattered along a prominent 1.6 mile (2.5 km) NNE-trending linear zone known as the Lopez Trend. Highlights of the drilling program include:

  • Discovery of a possibly extensive REE-bearing alkali granite/syenite unit in the northern part of the Lopez Trend

  • Intersected lengthy intervals of REE mineralization, including 32 feet (9.8 m, not true width) of 1.05% total REO (rare earth oxides) with a 6 foot (1.8 m, not true width) zone containing 3.28% total REO

  • Desirable and valuable Heavy REEs (HREE) comprise up to 18 percent of the REE mineralization encountered in this unit

Paul McKenzie, President and CEO of Elissa, states: "We are encouraged by these results on our Thor Project and are especially pleased that the drilling has confirmed REE mineralization that is strongly enriched in the valuable heavy-REEs. At least 90 percent of the Lopez Trend and a large number of outlying REE targets remain untested by drilling. We believe we are at the early stage of defining what could be a very large REE-bearing system and are planning a second-phase program to examine areas and test concepts discerned from our ongoing exploration."

In the recent drilling campaign, Elissa drilled 21 holes for 7,251 feet (2,210 m) of HQ-sized drill core. Collectively this drilling examined only about 10 percent (1000 feet; 305 m) of the known strike length of the Lopez Trend, which has been the main exploration target to date. The Lopez Trend was first identified by local bedrock exposures containing significant REE showings aligned in a NNE-SSW trending belt. The belt is from 200-300 feet (60-90 m) wide and extends for at least 1.6 miles (2.5 km) along strike, but airborne and detailed ground magnetic geophysical surveys in 2010 and 2011 suggest the bedrock host unit may actually be much more extensive, being largely concealed beneath alluvium.

Five sites in the northern part of the Lopez Trend were examined with 11 relatively short drill holes and one site in the southern part of the trend was examined with 6 holes. In addition, 4 short holes were drilled on the outlying NED target located one kilometer east of the Lopez Trend. Holes were drilled at various inclinations directed mostly to the east-southeast to intersect the west-dipping rock units of the Lopez Trend (see Table 1, appended to this news release for drill hole details and sampling statistics). To date, 196 samples of drill core totaling 590 feet (189 m) in length have been assayed, representing about 8 percent of all core returned in the program. Samples were selected using a combination of handheld detectors and downhole logging tools from 16 intervals in 11 of the 21 drill holes. Assays of drill core samples from the northern part of the Lopez Trend show relatively long intervals (21-53 feet; 6.4-6.2 m; not true width) containing strongly anomalous REE (>0.10% total REO) and enclosing shorter intervals of higher grade material (>1.0% total REO) (see Table 2, appended to this news release for assay results of interest).

The mineralized intervals encountered in the Thor drilling are hosted by an apparently widespread biotite-rich granite/syenite unit. Ongoing independent studies of core samples from the drilling program by outside consultants and university researchers suggest the REE mineralization may have formed as part of the rock body itself. Petrographic studies (by Dr. Virginia Gillerman, Economic Geologist with experience in REE-mineralization) indicate that the mineralization encountered in the drilling is associated with abundant biotite-rich zones (or layers) within the alkali granite/syenite host unit and occurs as small, indistinct "veins" of apatite-monazite (REE-bearing phosphate minerals) that follow grain boundaries. There is little or no evidence of open-space fracture filling, and it is suggested that the REE minerals may have been emplaced from within the rock itself while the rock was still in a plastic, slightly molten state.

A new host rock/mineralization model for the Thor REE Project is being prepared. This new model will assist in a second-pass drilling program planned to target a possible REE-bearing rock system of significant size. Surface and geophysical work to date indicate the Lopez Trend and other untested targets on the Thor property remain widely open on strike and to depth. Elissa is supporting ongoing petrographic work and university research in an effort to advance an understanding of the REE mineralization. Elissa's team of experienced consulting geologists now think that the known Lopez Trend represents part of the eastern limb of a very large, perhaps overturned, fold with the nose and similarly sized western limb of the fold, known as the Santos Trend, being concealed by shallow alluvial cover. If so, the total strike length of units equivalent to the REE-bearing host exposed along the Lopez Trend could be 20,000 feet (6 km) or more.

QA/QC procedures: Intervals of drill core selected for sampling were split in half by independent contract personnel using a rock saw. One split was bagged, labeled and sent by commercial carrier to Activation Laboratories ("Actlabs") in Ancaster, ON. Actlabs is an internationally renowned, ISO-accredited analytical laboratory with expertise in REE assays. To monitor laboratory QA/QC, Elissa geologists randomly inserted standard or blank samples into the sample sequence sent to the lab. Drill core, including splits of the core sent for assay, is currently stored in a secure warehouse in the town of Henderson, about 40 miles (60 km) from the project site.

Cautionary note: The sample or assay intervals reported in this news release are downhole core lengths. The actual width of any mineralization represented by these intervals is uncertain at this time but it is probably less than the lengths reported in this news release.

Note: The rare earth contents in this news release refer to the combined content of all the lanthanide elements + yttrium. Assay results from the laboratory report values in ppm (parts per million) for each of these 15 elements. Following common convention, Elissa has converted these values to oxide-equivalents and expressed as rare earth oxide (REO) values in percent (%). Please see specifics on the drill results in Table 1 and Table 2 below.

Table 1. Thor Project Core Holes
Length Coordinates (meters) Intervals sample Length sampled
Drill Hole # Area Azimuth Angle feet meters east north from - to (feet) feet meters
TR-12-001 T 110 -45 291 89 668,165 3,922,852 92.9 - 130.4 38 11.4
TR-12-002 T 135 -45 352 107 668,165 3,922,852 92.9 - 162.0 69 21.1
TR-12-003 T 135 -70 317 97 668,165 3,922,852 156.0 - 193.0 37 11.3
TR-12-004 T 70 -45 362 110 668,165 3,922,852 Not Sampled
TR-12-005 T 110 -80 391 119 668,165 3,922,852 Not Sampled
TR-12-006 T 160 -70 452 138 668,165 3,922,852 Not Sampled
TR-12-007 O 110 -45 331 101 668,739 3,923,883 44.7 - 66.4 21.7 6.6
186.0 - 213.5 27.5 8.4
TR-12-008 O 110 -70 400 122 668,739 3,923,883 66.6 - 93.4 26.8 8.2
TR-12-009 O vert. -90 534 163 668,739 3,923,883 42.9 - 50.4 7.5 2.3
76.3 - 111.8 35.5 10.8
TR-12-10 P 110 -45 332 101 668,756 3,923,931 Not Sampled
TR-12-11 P vert. -90 583 178 668,756 3,923,931 63.7 - 149.3 85.6 26.1
TR-12-12 R 70 -45 384 117 668,813 3,924,069 Not Sampled
TR-12-13 R 110 -45 308 94 668,813 3,924,069 170.5 - 192.3 21.8 6.6
TR-12-14 N 110 -45 291 89 668,719 3,923,836 Not Sampled
TR-12-15 N vert. -90 541 165 668,719 3,923,836 Not Sampled
TR-12-16 P 290 -70 601 183 668,756 3,923,931 300.9 - 344.9 44 13.4
573.5 - 599.3 25.8 7.9
161.5 - 263.9 102.4 31.2
TR-12-17 O 110 -45 397 121 668,676 3,923,900 294.2 - 313.7 19.5 5.9
168.7 - 177.5 8.8 2.7
187.0 - 196.1 9.1 2.8
ND-12-01 NED vert. -90 120 37 669,844 3,923,914 Not Sampled
ND-12-02 NED 340 -50 132 40 669,844 3,923,914 Not Sampled
ND-12-03 NED vert. -90 21 6 669,846 3,923,914 0 - 10.3 10.3 3.1
ND-12-04 NED 60 -45 111 34 669,829 3,923,916 Not Sampled
7,251 2,210 590 180
Table 2. Thor Drill Hole Assays = 0.10% Total REO
Note: Assay intervals are sample lengths; true widths of any mineralized zones have yet to be determined
Mineralization ≥ 0.10% TREO % of HREO
Drill
Hole #
from
(ft.)
to
(ft.)
length
(ft)
length
(m)
%
TREO
in
TREO
COMMENTS
TR-12-002 138.0 142.0 4.0 1.2 0.11 11.9% South Zone
TR-12-003 181.0 182.5 1.5 0.5 0.32 5.9% South Zone
44.7 66.4 21.7 6.6 0.12 10.1% Upper Zone
TR-12-007 includes: 2.0 0.6 0.38 10.3%
186.0 213.5 27.5 8.4 0.17 4.3% Lower Zone
includes: 1.2 0.4 0.97 3.1%
66.6 93.4 26.8 8.2 0.57 14.5% Upper Zone
TR-12-008 includes: 2.4 0.7 0.57 10.6%
1.4 0.4 1.77 17.1%
42.9 50.4 7.5 2.3 0.29 18.5% Upper Zone
includes: 1.7 0.5 0.83 18.5%
TR-12-009 79.8 111.8 32.0 9.8 1.05 14.9% Upper Zone
includes: 16.5 5.0 1.82 15.0%
6.0 1.8 3.28 15.1%
63.7 117.0 53.3 16.2 0.21 17.1% Upper Zone
includes: 1.4 0.4 0.96 15.5%
TR-12-011 2.0 0.6 0.48 18.3%
1.1 0.3 1.04 15.3%
124.6 145.5 20.8 6.3 0.24 13.6% Lower Zone
includes: 2.8 0.9 0.95 13.0%
TR-12-16 300.9 307.8 6.9 2.1 0.10 6.1% Upper Zone
584.2 586.7 2.5 0.8 0.02 3.1% Lower Zone
TR-12-17 298.2 303.7 5.5 1.7 0.19 4.1% Upper Zone
ND-12-03 0.0 5.0 5.0 1.5 1.04 11.3% NED

Qualified Person: 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 (17 miles) east of Molycorp Minerals' Mountain Pass REE deposit and processing facility, California. Elissa also owns a 100% interest in the Ulysses REE Project located in eastern Idaho and south-western Montana, and has an option to earn a 100% interest in the St. Elmo (Nevada) gold project.

On behalf of the Board of Directors of Elissa Resources Ltd.,

Paul McKenzie, President and CEO

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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