Allana Potash Announces New NI 43-101 Compliant Measured and Indicated Mineral Resources of 673 Million Tonnes and an Increase in Inferred Mineral Resources to 596 Million Tonnes
Allana Potash Corp. (TSX VENTURE:AAA)(OTCQX:ALLRF)(“Allana” or the “Company”) is pleased to announce that it has received an updated National Instrument 43-101 (“NI 43-101”) compliant Mineral Resource Estimate from ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergau (“ERCOSPLAN”) on its Danakhil Potash Project in Ethiopia. The updated mineral resource estimate includes all four potash bearing beds (sylvinite, upper and lower carnallite and kainitite) in the project and is comprised of Measured and Indicated Mineral Resources totaling 673 Million tonnes with an average grade 18.65% KCl (composite of all four potash beds) and Inferred Mineral Resources totaling 596 Million tonnes with an average grade of 19.96% KCl (composite of all four potash beds). A summary of the resources is presented in Table 1.
Farhad Abasov, President and CEO of Allana commented “We are very pleased with the dramatic increase in the potash resources at the Company’s Dallol Project in Ethiopia which greatly exceeds management’s initial expectations. The resource has grown from just over 100 Million tonnes of inferred mineral resources to 673 million tonnes of measured and indicated mineral resources and over 596 million tonnes of inferred mineral resources with good potential to expand on this resource. As stated by ERCOSPLAN, this resource estimate is based on only 40% of Allana’s licensed land area in the evaporite basin and we will continue to drill throughout the year to expand the potash resource. In particular, Allana is very encouraged by the significant Measured and Indicated resources which total approximately 673 Million tonnes of mineralized material containing about 126 Million tonnes of KCl. This substantial resource will enable Allana not only to proceed with a Feasibility Study this summer, but also realistically consider a larger production facility after the initial production line. With substantial kainitite resource, Allana will have potential for significant premium product (SOP) production too. The relative shallow depth of the resource in the western part of the license area will also enable us to seriously study the potential of open pit mining.”
The board and management would like to congratulate Allana’s Ethiopian exploration team headed by Peter MacLean, Nejib Abba Biya and Jason Wilkinson for the excellent job they have done on the project. Allana commenced our exploration program in April 2010, in aggregate drilled over 12,000 meters and completed 2D seismic and downhole geophysical programs.
Allana also congratulates the government and people of Ethiopia on this major milestone which positions the country as a potential major potash producer with a significant impact on the Ethiopian economy. The management intends to continue advancing our potash project towards production and looks forward to working with our numerous stakeholders on the next phase of Allana’s development and we would like to thank them for their contributions and support thus far.
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