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Allana Potash Intersects Two Zones of Strong Potash Mineralization

Published on December 6, 2011 at 8:01 PM

Allana Potash Corp. has announced that it has intersected two zones of strong potash mineralization in Hole DK-11-30 ("Hole 30"). Hole 30 is located in the western portion of the concession block and was targeted to test potash mineralization west of Hole 10. 

Hole 30 intersected a strong Sylvinite Zone at a depth of 193.70 metres which yielded 32.02% KCl over 5.35 metres, including a high grade section from 195.20 metres to 197.70 metres of 43.85% KCl. A robust Kainitite Zone was also intersected deeper in the hole at a depth of 215.30 metres and returned 22.5% KCl over 6.90 metres.

Farhad Abasov, President and CEO, commented: "Allana continues to be encouraged by the continuity and strength of potash mineralization in the western portion of the property as exhibited by the results of Hole 30. This area continues to yield high grade potash in the Sylvinite and Kainitite zones which management believes will allow Allana to upgrade mineral resources from Inferred to Measured and Indicated categories as well as add to the Inferred category. The relatively shallow and high grade nature of the Sylvinite Zone make this area ideal for solution mining with recovery through solar evaporation."

Hole 30 is part of a drilling program in the west designed to test the extension of the potash mineralization associated with the historic Musley Deposit and allow more material to be included in the Measured and Indicated mineral resource categories. The results for Hole 30 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 30 was drilled vertically and was collared approximately 750 metres west of Hole 10 (see attached figure). Hole 30 is located in the western part of the concession block west of Hole 10 and east of the historic Musley Deposit suggesting that potash mineralization at Musley continues and is consistent at least to Hole 10. Previously released Allana drill holes in this region yielded very high sylvinite grades (see attached figure) and the results of Hole 30 further support the interpretation of continuity of potash throughout the region.

Exploration drilling is continuing in the western part of the property (Hole 38) as part of the infill drilling program that management has designed to add mineral resources as well as increase confidence in the current mineral resource estimates by reducing the spacing between holes allowing more material to qualify for Measured and Indicated mineral resource categories. Samples from holes 29 and 31-37 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.

Allana is also pleased to announce the promotion of Jason Wilkinson to Vice President, Danakhil Operations to reflect the shift in activity at the Danakhil project to the development stage. The project continues to advance with a Feasibility Study underway and emphasis being placed on geotechnical drilling, rock mechanical testwork, pilot studies on solution mining cavern development and solar evaporation ponds.

Source: www.allanapotash.com

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