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Posts tagged ‘Elissa Resources Ltd. (ELI)’

Elissa expands Nevada Rare Earth Drill Program

March 27th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningElissa Resources Ltd TSXV:ELI announced an expansion of the phase I drilling program at its Thor Heavy and Light Rare Earth Element Project in Nevada. The company has obtained drilling permits for additional targets in the project’s NED Area and a second rig is being mobilized. Drilling so far has examined targets along the 2.5-kilometre Lopez Trend.

The Lopez Trend is a major structural zone with a distinct geophysical signature. The NED Area is one kilometre east of the northern end of the Lopez Trend. Surface samples from both locations contain nearly all the strategic and potentially valuable rare earth elements including four that have been deemed in short supply by the US Department of Energy: neodymium, terbium, dysprosium and yttrium. Planning for a phase II drill program is now underway. The company anticipates issuing a single news release summarizing phase I results by 3Q 2012. The project is located 28 kilometres from Molycorp’s MCP Mountain Pass REE deposit and processing facility in California.

View Company Profile

Contact:
Paul McKenzie
President/CEO
604.662.3692

by Greg Klein

Elissa President Paul McKenzie on Nevada REE drilling commencement

January 16th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningElissa Resources Ltd TSXV:ELI announced that it has begun Phase 1 drilling on the Lopez trend of its Thor heavy and light rare earth element project in southern Nevada. A minimum of 1,500 metres will be drilled, and the company anticipates the program to be completed within 1Q 2012. The project is located approximately 28 kilometres east of Molycorp Minerals’ Mountain Pass REE mine.

President/CEO Paul McKenzie tells ResourceClips.com, “We’ve had this project for over a year, and we picked it up on nothing more than a theory. It was intriguing to us because of its proximity to Molycorp’s flagship Mountain Pass deposit. That it was in the state of Nevada made it all the more intriguing. But when we got on the ground after acquiring it, it very quickly became a compelling property, and with every visit it became more and more so.

“Over this last year we’ve done a multitude of work programs. We’ve mapped the entire property and done geophysical surveys—including an airborne magnetic survey and a ground geophysical survey. We’ve identified 14 of the 17 rare earth elements on surface. The largest structure we’ve found to date is the Lopez trend. It’s 2.6 kilometres in length and it is identically coincident with the airborne geophysical and ground magnetic surveys that we conducted. So there’s this subsurface anomaly of the same length, making it a very compelling structure. We have nine discovery locations on surface for rare earths at very solid grades and we have three discovery zones on the project to date.

We have nine discovery locations on surface for rare earths at very solid grades and we have three discovery zones on the project to date—Paul McKenzie

“This news really represents a lot of hard work and a lot of effort from our geologists who got the project to the drill-ready stage,” McKenzie continues. “The drill program is about 1,500 metres. It’s Phase-1 drilling, and we’re going to target the Lopez trend initially. We’ve got about 20 drill sites located and permitted along this structure. On each drill site we intend to drill a variety of holes that are available to us. I think we should have some results by the end of 1Q, although you never know for sure with the backlog at the assay labs.

“This program will keep us pretty busy, but we have another rare earth project that we acquired called the Ulysses project that borders Idaho and Montana. There are actually three properties there that we have. We’ll do quite a bit of work on those projects, then there are other parts of the Thor project, other than the Lopez trend, that we want to get permitted so we can drill.

“It’s too early to say when we’ll have a resource estimate at this juncture. What I can say is, if this drill program is successful, then our plan would be to significantly beef up drilling on the project. There’s a lot riding on this Phase 1 drilling, although we’ll probably drill other parts of the property regardless of this. We’re very excited about it.”

McKenzie reports that Elissa has sufficient cash for exploration. “We just did a small raise of capital, a significant portion of it was taken by the insiders of the company. Our treasury right now is about $2.7 million—more than sufficient funding for this drill program and through this year and into next year.”

As to the company’s long-term plans for Thor, “The goal is to keep it moving towards production, to always be advancing the project every step of the way. At some juncture, if people want to sit with us and talk about partnerships or take-outs—and if it’s in the best interests of the shareholders—then obviously we would sit down for those discussions. But our plan is to keep advancing it all the way along.

“Given that we’ve got 14 of the rare earth elements represented on the project and our proximity to Mountain Pass, even a small deposit could be potentially economic. In that regard we’re undervalued. We’re a drill-ready property just at the beginning of a drilling, so the company could be valued very differently with drilling success.

“I’m very pleased with our progress,” McKenzie concludes. “Our guys have done a phenomenal job. Our chief geologist Mel Klohn has put together an incredible team of people. They’ve done a sensational job. We’re very pleased.”

View Company Profile

Read more about Elissa Resources

Contact:
Paul McKenzie
President/CEO
604.662.3692

by Ted Niles

Elissa reports drilling commencement at Nevada Rare Earth Project

January 13th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningElissa Resources Ltd TSXV:ELI announced that it has begun Phase 1 drilling on the Lopez trend of its Thor heavy and light rare earth element project in southern Nevada. A minimum of 1,500 metres will be drilled, and the company anticipates the program to be completed within 1Q 2012. The project is located approximately 28 kilometres east of Molycorp Minerals’ Mountain Pass REE mine.

President/CEO Paul McKenzie tells ResourceClips.com, “We’ve had this project for over a year, and we picked it up on nothing more than a theory. It was intriguing to us because of its proximity to Molycorp’s flagship Mountain Pass deposit. That it was in the state of Nevada made it all the more intriguing. But when we got on the ground after acquiring it, it very quickly became a compelling property, and with every visit it became more and more so.

“Over this last year we’ve done a multitude of work programs. We’ve mapped the entire property and done geophysical surveys—including an airborne magnetic survey and a ground geophysical survey. We’ve identified 14 of the 17 rare earth elements on surface. The largest structure we’ve found to date is the Lopez trend. It’s 2.6 kilometres in length and it is identically coincident with the airborne geophysical and ground magnetic surveys that we conducted. So there’s this subsurface anomaly of the same length, making it a very compelling structure. We have nine discovery locations on surface for rare earths at very solid grades and we have three discovery zones on the project to date.

We have nine discovery locations on surface for rare earths at very solid grades and we have three discovery zones on the project to date—Paul McKenzie

“This news really represents a lot of hard work and a lot of effort from our geologists who got the project to the drill-ready stage,” McKenzie continues. “The drill program is about 1,500 metres. It’s Phase-1 drilling, and we’re going to target the Lopez trend initially. We’ve got about 20 drill sites located and permitted along this structure. On each drill site we intend to drill a variety of holes that are available to us. I think we should have some results by the end of 1Q, although you never know for sure with the backlog at the assay labs.

“This program will keep us pretty busy, but we have another rare earth project that we acquired called the Ulysses project that borders Idaho and Montana. There are actually three properties there that we have. We’ll do quite a bit of work on those projects, then there are other parts of the Thor project, other than the Lopez trend, that we want to get permitted so we can drill.

“It’s too early to say when we’ll have a resource estimate at this juncture. What I can say is, if this drill program is successful, then our plan would be to significantly beef up drilling on the project. There’s a lot riding on this Phase 1 drilling, although we’ll probably drill other parts of the property regardless of this. We’re very excited about it.”

McKenzie reports that Elissa has sufficient cash for exploration. “We just did a small raise of capital, a significant portion of it was taken by the insiders of the company. Our treasury right now is about $2.7 million—more than sufficient funding for this drill program and through this year and into next year.”

As to the company’s long-term plans for Thor, “The goal is to keep it moving towards production, to always be advancing the project every step of the way. At some juncture, if people want to sit with us and talk about partnerships or take-outs—and if it’s in the best interests of the shareholders—then obviously we would sit down for those discussions. But our plan is to keep advancing it all the way along.

“Given that we’ve got 14 of the rare earth elements represented on the project and our proximity to Mountain Pass, even a small deposit could be potentially economic. In that regard we’re undervalued. We’re a drill-ready property just at the beginning of a drilling, so the company could be valued very differently with drilling success.

“I’m very pleased with our progress,” McKenzie concludes. “Our guys have done a phenomenal job. Our chief geologist Mel Klohn has put together an incredible team of people. They’ve done a sensational job. We’re very pleased.”

View Company Profile

Read more about Elissa Resources

Contact:
Paul McKenzie
President/CEO
604.662.3692

by Ted Niles

Heavy Potential

July 6th, 2011

Elissa Has Found Rare Earths in Nevada

By Ted Niles

Elissa Resources’ motto “Security in discovery” has a dual meaning. The first is the suggestion that company shares are a wise investment. But given that Elissa’s focus is on those mysterious but essential minerals known as rare earths, its secondary meaning, national security, makes it particularly apropos. “Rare earths are very important economically,” says President and CEO Paul McKenzie, “particularly to economies as big as the United States. And those counties are not producing rare earths.”

China is: about 97% of them. And China, as a consequence of new environmental regulations and quotas, has reduced its rare earths exports by about 70%. McKenzie explains the consequences, “It causes the price of rare earths to skyrocket. And they’ve steadily done so over the past couple of years; in the last six months alone they’re up 300% to 500%. And it scares the hell out of other countries because they cannot have a steady source of rare earths, to the point where the United States is strongly considering stockpiling them.”

Elissa Has Found Rare Earths in Nevada

There are 17 rare earth elements, and their uses defy enumeration. “Pretty much everything we use in this modern world is entirely dependent upon them,” McKenzie says, “from computers to cell phones to hybrid cars, wind generation, lasers, fluorescent light bulbs.” He adds, “There are military applications, so the US does not want to get caught short.” This is where Elissa’s Thor Project comes in: “We’re basically trying to create domestic sources in the United States of rare earths.”

Thor comprises 183 contiguous claims, totalling 1,481 hectares, located on the Nevada side of the Mojave Desert Region, about 120 kilometres south of Las Vegas. Work to date has consisted of surface mapping, satellite imagery analysis, channel sampling and geochemical work, with sample results as high as 10.6% REE. There is as yet no resource estimate, but even now McKenzie is particularly excited. “We found a structure [the Lopez trend] 2.6 kilometres in length,” he reports, “and wherever this thing comes up out of the alluvial of the Mojave desert we’re getting very strong grades of both heavy and light earths on surface.” Elissa has had similarly positive returns on its other two areas of focus: Black Butte and NED.

The presence of these rare heavy rare earths makes Thor of unique interest. “There are no straight-up heavy rare-earth deposits,” McKenzie says. “You’re going to get a light deposit occasionally with a percentage of heavies. But in our case, of all the sampling we’ve got back, about 10% were heavies, and 90% were light. That’s significant.” McKenzie contrasts Thor with its neighbour 26 kilometres to the west, Molycorp’s Mountain Pass Mine—the only producer of rare earths outside China, currently undertaking a $531-million modernization and expansion program—and the renowned Bayan Obo Mining District in Mongolia, both of which show under 1% representation of heavy rare earths. “Because of their size they’re going to produce some good amounts of heavies. But they’re certainly not supporting world demand.”

Every time we’ve set foot on the property it’s become more intriguing, more interesting, more exciting —Paul McKenzie

McKenzie continues, “There are four metals that are deemed critical by the US Department of Energy: neodymium, terbium, dysprosium and yttrium. We have some very strong representation of all of those. In fact, we have strong representation in 13 of the 17 rare earth elements. The ones we have strong representation of are the ones deemed most critical by the US Department of Energy.”

Following further ground geophysical work and the acquisition of more ground in the area, McKenzie anticipates drilling to begin “within a few months.” He says, “Every time we’ve set foot on the property it’s become more intriguing, more interesting, more exciting. But really the truth is going to be in the drill program. If that stacks up for us, then we’ll immediately expand that pretty aggressively.”

McKenzie argues, “Even a small discovery could potentially be a fast track to production. And we know that [Molycorp] is looking for more heavy rare earths. They’re becoming a pretty aggressive company; they’re smart. I think what they’re really trying to do is to become to rare earths what Cameco is to uranium. They want to be the dominant player. If we have something of size, even modest size, they may well be interested.”

Elissa Resources has 28.8M shares, currently trading at $0.37 and a market cap of $10.7 million. In addition to Thor, it has two gold projects: Sage Creek in Idaho and St Elmo in Nevada. Both properties are “drill ready,” and McKenzie anticipates a Sage Creek drill program of “about six to twelve holes of no less than 100 metres depth” will begin soon. He believes that both projects have “multimillion-ounce potential.”

McKenzie concludes, “We have a significant advantage being next to Molycorp. They are in the process of reopening, and they’re spending a billion dollars to do so—a vast majority of that going into their refining process and refining facilities. This may give us an edge if we make a discovery.”