Allana Potash intersects highest grade potash to date at Dallol

May 20, 2011 10:41 AM ET

517 Followers

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

http://www.proactiveinvestors.com.au/

Short Only

Seeking Alpha Analyst Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Allana Potash (CVE:AAA) said Thursday that it has intersected the highest grade potash to date at its Dallol deposit in Ethiopia, through additional drilling in areas beyond those included in the last resource estimate from 2008.

The company said the new work will be part of its upcoming updated NI 43-101 compliant technical report, which has the potential to add signficantly to the property's resource.

Highlights of the results include 52.4% KCI over 0.80 metres in hole DK-11-15. According to Allana, hole 15 intersected two strong zones of potash mineralization, which appear to correlate with the Sylvinite Zone and Kainitite Zone. Sylvinite and kainitite are two important ores for the production of potash.

The Sylvinite Zone returned 2.70 metres of sylvinite, which graded 39.38 % KCl, and includes a 1.70 metre interval that returned 49.13% KCl and a further sylvite-rich zone that returned 0.80 metres of 52.40% KCl.

Further down the hole, 6.80 metres of kainitite was intersected which returned 25.87% KCl, also the highest grade kainitite returned to date on the property.

“This area continues to return high potash grades and significant thicknesses. Each drill hole in this area yields higher grades and the 52.40% KCl over 0.80 metres is the highest grade intersected to date on the property," said president and CEO Farhad Abasov.

Exploration drilling is continuing in the far eastern part of the property to test for potash mineralization in this unexplored region.

The resource from the Dallol project in 2008 estimated inferred mineral resources of 105.2 million tonnes with a composite grade of 20.8 % KCl.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You