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Allana Potash intersects highest grade potash to date at Dallol

May 20, 2011 10:41 AM ET
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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.

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