Allana Potash (TSE:AAA)(OTCQX:ALLRF) Tuesday announced that it has intersected strong potash mineralization in three holes at its Dallol potash project in Ethiopia, prompting it to extend its drill program in the southern boundary of Ethiopia.
holes are part of an in-fill drilling program in the west designed to
decrease the spacing between drill holes to increase the level of
confidence that potash mineralization is continuous.
the strong mineralization was intersected in Holes DK-11-35, DK-11-36,
and DK-11-37 located southeast of the Musley Deposit towards the
southern boundary of the property.
"Allana continues to be
pleased with the continuity and strength of potash mineralization in the
western portion of the property as exhibited by the results of the
latest drill holes," said Allana president and CEO Farhad Abasov.
drilling continues to outline potash mineralization and management
believes this may allow Allana to upgrade mineral resources from
inferred to measured and indicated categories as well as add to the
indicated and inferred mineral resource categories.
"Due to excellent drill results management has decided to extend the
drill program. Management is planning to release an updated 43-101
compliant mineral resource estimate in April and revised updates as
needed after further expansion drilling."
Allana said Holes 35
and 36 intersected two main zones of potash mineralization, sylvinite
and kainitite, and Hole 37 intersected kainitite.
intersected 5.7 metres of 31.3% potassium chloride (KCl) in the
sylvinite Zone and included a higher grade interval of three metres of
39.1% KCl. The hole also intersected 7.5 metres of 20.3% KCl in the
underlying kainitite zone.
Hole 36 intersected four metres of 24.6% KCl in the sylvinite zone and 5.1 metres of 20.2% KCl in the kainitite zone.
Hole 37 intersected only the kainitite zone at a depth of 344.5 metres which returned 5.3 metres of 19.7% KCl.
mineralization was intersected at relatively shallow depths in Holes 35
and 36 with sylvinite occurring at depths of 142.5 metres and 83 metres
respectively, Allana said.
The company said it remains confident
that the most recent results may allow upgrading of the current mineral
resource estimate to the measured and indicated mineral resource
categories and that Hole 36 will also allow the company to add potash
resource as it occurs in an area previously not drilled.
drilling continues in the far eastern part of Allana’s property in
Ethiopia (Hole 47) and in the northern part (Hole 48) as part of the
program to expand the mineral resources.
Samples from Holes 38 through 46 are undergoing analysis or on the way to the company’s laboratory in Saskatoon.
said that technical studies in support of its feasibility study are in
progress, including solution mining cavern preparation, solar
evaporation pond construction, environmental baseline studies, and
The company said it has recently
initiated a ground geophysical survey over its property to identify
aquifers in the alluvial fans.
Mobilization of drilling equipment is ongoing and water well drilling is expected to commence shortly.
is focused on the acquisition and development of potash assets
internationally with its major focus on a previously explored potash
property in Ethiopia.
It has secured financial support from two
significant strategic investors: IFC, a member of World Bank Group, and
Liberty Metals and Mining, a member of Liberty Mutual Group.