Allana Potash Infill Drilling Yields Additional Shallow
Potash in Holes 24, 25 and 26
--
Hole 24 Intersects 35% KCl Over 2.81 Metres of Sylvinite and 21 % KCl Over
6.30 Metres of Kainitite -- Hole 25 Intersects
29% KCl Over 5.5 Metres of Sylvinite
and 19 % KCl Over 5.89 Metres of Kainitite -- Hole 26 Intersects 20% KCl
Over 1 Metre of Sylvinite and 19 % KCl Over 8.00 Metres of Kainitite
-- Potash Intersected as Shallow as 101 Metres from Surface
Thursday, September 15, 2011
TORONTO, ONTARIO--(Marketwire - Sept. 15, 2011) -Allana
Potash Corp. (TSX:AAA)(OTCQX:ALLRF)("Allana" or the "Company") is pleased to
announce that it has intersected potash mineralization in Holes DK-11-24
("Hole 24"), DK-11-25 ("Hole 25") and DK-11-26
"Hole 26"). All Holes intersected two zones of potash, Sylvinite and Kainitite, at
shallow depths and are located in the southwestern
portion of Allana's land position. Hole 24
yielded 35.12% KCl over 2.81 metres at a depth of
135.83 metres which corresponds with Sylvinite
Zone, and 21.03% KCl over 6.30 metres from the Kainitite Zone. Hole 25 also intersected the Sylvinite Zone returning 29.33% KCl
over 5.5 metres and the Kainitite Zone which
returned 18.98% KCl over 5.89 metres. Hole 26
yielded 20.26% KCl over one metre of sylvinite at a depth of 105 metres and a robust Kainitite Zone which returned 18.54% KCl over 8.00 metres. The potash mineralization in Hole
25 was intersected at approximately 101 metres below surface and all holes
are located in the southwestern portion of the
property where holes 8, 11, 16, 17, and 19 also intersected shallow potash
and management believes this area may be amenable to open pit mining.
Farhad Abasov, President and CEO, commented:
"Allana is extremely encouraged by the zones
of strong potash mineralization intersected in Holes 24, 25 and 26 and that
the potash continues to occur at shallow levels. These holes, combined with
previous holes completed by Allana, form a region
of potash mineralization which occurs at depth between 75 and 200 metres
below surface. Allana management believes that
the potash in this region may be amenable to mining by open pit methods and
future studies will focus on this potential."
Holes 24, 25 and 26 are part of an
infill drilling program designed to provide additional information on the
distribution of the potash mineralization in the southwest portion of Allana's property which may have potential to be mined
via open pit methods. In addition, the new drilling in this area will
reduce the drill hole spacing and allow more material to be included in the
Measured and Indicated Resource categories. The results for Holes 24, 25
and 26 are presented in the table below. True widths of the potash zones
are estimated to be very similar to drilled widths due to the flat-lying
nature of the potash horizons. The zones of potash mineralization are
outlined in the following table:
HOLE
ID
|
FROM (m)
|
TO (m)
|
WIDTH (m)*
|
KCL (%)
|
ZONE
|
|
|
|
|
|
|
DK-11-24
|
135.84
|
138.64
|
2.81
|
35.12
|
Sylvinite
|
|
143.30
|
149.60
|
6.30
|
21.03
|
Kainitite
|
|
|
|
|
|
|
DK-11-25
|
101.23
|
106.65
|
5.52
|
29.33
|
Sylvinite
|
|
113.31
|
119.20
|
5.89
|
18.98
|
Kainitite
|
|
|
|
|
|
|
DK-11-26
|
105.00
|
106.00
|
1.00
|
20.26
|
Sylvinite
|
|
117.50
|
125.50
|
8.00
|
18.54
|
Kainitite
|
Hole 24 was drilled vertically
and was collared approximately 1500 metres west of Hole 6 (see attached
figure). Hole 24 is located in the southwestern
part of the Company property in a gap in the previous drill pattern that
was done on two kilometre centres. Similarly, Hole 25 is located
approximately 1000 metres northwest of Hole 11, was drilled vertically and
is part of the infill drilling program. Hole 26 was also drilled vertically
and is located approximately 1500 metres west-northwest of Hole 24. All
holes intersected strong sylvinite mineralization
as well as strong kainitite mineralization and
supports continuity of the potash mineralization at shallow levels.
Management believes that the continuity of the shallow potash
mineralization indicates good potential for open pit mining in this part of
the project.
Exploration drilling is
continuing in western part of the property (Hole 35) as part of the infill
drilling program that management has designed to add resources and increase
confidence in current resources by reducing the spacing between holes
allowing more material to qualify for Measured and Indicated categories.
Samples from holes 27-34 are undergoing analysis or are en route to the
laboratory in Saskatoon, Canada.
About Allana
Potash Corp.
Allana is a publicly traded corporation with a focus on the acquisition
and development of potash assets internationally with its major focus on a
previously explored potash property in Ethiopia. Allana
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. Allana has Measured and
Indicated Sylvinite Resources of 97.8 M Tonnes of
30.0% KCl; Inferred Sylvinite
Resource of 108.3 M tonnes grading 31.3% KCl;
Measured + Indicated Kainitite Resources of 284.2
M tonnes at 19.8% KCl, Inferred Kainitite Resource of 271.2 M tonnes of 20.3% KCl; Measured+Indicated Upper
Carnallitite Resources of 78.5 M tonnes grading
18.4% KCl, Inferred Upper Carnallitite
Resource of 85.6 M tonnes of 17.1% KCl; Measured+Indicated Lower Carnallitite
Resources of 212.6 M tonnes of 12.0% KCl,
Inferred Lower Carnallitite Resource of 130.7 M
tonnes grading 11.7% KCl. Allana
has approximately 196.8 million shares outstanding and trades on the TSX
Exchange under the symbol "AAA".
Quality Control and Quality
Assurance
Allana employees follow standard operating and quality assurance
procedures intended to ensure that all sampling techniques and sample
results meet international reporting standards. Procedures for handling
core samples begin with securing the potash-bearing HQ-NQ-sized core at the
drill site in plastic poly-tubing which is then thermally sealed. Core is
placed in plastic core boxes and transported to Allana's
camp for geological logging, geotechnical logging and photographing.
Significant intervals are dry cut in half using a specially modified
tungsten carbide bladed band-saw. Half core samples are then double bagged
and thermally sealed prior to transporting to Addis Ababa by Allana personnel. In this initial phase, halite blanks
are randomly inserted into the sample stream at a rate of 1 in 20 and sent
for analysis with the core samples. The remaining core is re-sealed in
plastic poly-tubing and the core boxes secured at Allana's
exploration camp. Upon arrival in Addis Ababa core samples are stored at Allana's small warehouse facility and then taken to the
Ethiopian Ministry of Mines & Energy where permission is obtained to
export the samples. The bagged samples are then carefully packed into boxes
and shipped via DHL to the Saskatchewan Research Council in Saskatoon. This
sampling procedure was initiated by ERCOSPLAN Ingenieurgesellschaft
Geotechnik und Bergbau mbH, Allana's potash
consulting firm, supervised by Allana's Ethiopian
based Project Manager Jason Wilkinson, M.Sc., and periodically reviewed by Allana's Senior Vice President of Exploration, Peter J.
MacLean, Ph.D., P. Geo.
Allana is utilizing SRC's Potash ICP Analysis package designed for
multi-element analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories, core samples are jaw crushed
to 60 % @ -2mm and 100 g sub sample is split out using a riffler and transferred to vials. The subsample is
pulverized to 90 % @ -106 microns using a puck and ring grinding mill to
create a pulp. The grinding mills are cleaned between groups using Quintus
quartz. The pulp is then transferred to a labelled plastic snap top vial.
An aliquot of pulp is placed in a test-tube with 15 ml of 30�C DI water.
The sample is shaken. The soluble solution is then analyzed by ICP-OES. The
method is suitable for the soluble analysis of commercial potash (Sylvite). The soluble solution is then analysed by
ICP-MS. In addition, samples are analysed for FeO
(wt%),
Br and Cl by MS, plus insolubles.
SRC Geoanalytical Laboratories has been certified
by the Standards Council of Canada (SCC) to conform to the requirements of
ISO/IEC 17025:2005 (CAN-P-4E).
Peter J. MacLean, Ph.D., P.
Geo., Allana's Senior VP Exploration, is a
Qualified Person as defined under National Instrument 43-101 and has
reviewed and approved the technical information presented in this release.
Forward-Looking Statement
Except for statements of
historical fact relating to the Company, certain information contained
herein constitutes "forward-looking information" under Canadian
securities legislation. Forward-looking information includes, but is not
limited to, statements with respect to the effect and estimated timeline of
the drilling and assay results on the Company, the estimation of mineral
reserves and mineral resources; the timing and amount of estimated future
exploration; costs of exploration; capital expenditures; success of
exploration activities; permitting time lines and permitting, ; government
regulation of mining operations; environmental risks; unanticipated
reclamation expenses; and title disputes or claims; Generally,
forward-looking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does
not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made and they are subject to
known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by such
forward-looking statements or forward-looking information. Although
management of the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements or forward-looking information, there may be
other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements and forward-looking
information. The Company does not undertake to update any forward-looking
statements or forward-looking information that are
incorporated by reference herein, except in accordance with applicable
securities laws.
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