Allana Potash intersects strong mineralization in unexplored area of Dallol Project

Allana Potash (TSE:AAA) reported on Wednesday it has intersected strong potash mineralization in an area not previously drilled, at its Dallol project in Ethiopia.
The company said Hole 23 intersected 24.02% KCI, or potash over 7.02 metres from the Kainitite zone. Mineralization was intersected from 491.15 metres to 498.20 metres below surface.
The presence of strong potash mineralization in Hole 23 suggests strong continuity of the potash horizon across the southern basin and the deposit remains open in all directions.
There has been no previous drilling in the area and no resource has been calculated as yet in this region, the company said.
"Allana is extremely encouraged by the continuity of the Kainitite zone in the eastern portion of the license area as exemplified by Hole 23,” Farhad Abasov Chief Executive of Allana Potash said in a statement.
 “Drilling will commence shortly to determine if a large, shallow potash resource is present which may be amenable to open pit mining in both the eastern and western parts of the project."
Hole 23 was drilled vertically and was collared roughly 1,300 metres northwest of Hole 20.
The presence of strong kainitite mineralization about 5 kilometres east of the Allana Hole 4 supports the company's geological model that potash extends throughout the southern half of the basin.
The results of Hole 23 suggest good continuity of stratigraphy across this part of the basin as was outlined in Allana's 2-D seismic surveys.
Road construction is under way which will allow access to the eastern boundary of the property, where drilling can test the shallow nature of the potash and its amenability to open pit mining.
Further, Holes 21 and 22 did not reach target depth because of limitations of the drilling equipment and will be re-drilled at a later date, the company said.
Meanwhile, exploration drilling is continuing in the central western part of the as part of the infill drilling program designed to add resources and increase confidence in current resources.