Allana Potash (CVE:AAA) announced Monday that it has intersected strong potash mineralization in drill hole DK-11-12 at its Dallol project in Ethiopia.
Hole 12 intersected 15.2 metres of 26.17% potassium chloride, or potash (KCl), including 37.84% KCl over 4.10 metres.
This mineralization, found in the central part of the property, suggests a strong potash continuity, Allana said. The deposit also remains open to the east, which the Toronto, Ontario-based company believes will increase the property's resource potential.
Allana Potash also announced that it plans to include this hole 12 data in its upcoming NI 43-101 technical report, expected in the middle of this month.
"This hole is important as it provides a strategic link between the historic Musley Deposit and the centre part of the evaporite basin intersected in Hole 4," said president and CEO, Farhad Abasov.
"We believe that the presence of strong potash mineralization in Hole 12 further indicates continuity of the potash horizon into the centre of our property and supports our geological model of potash mineralization throughout the southern portion of the basin."
Hole 12 was drilled vertically, approximately 1,500 metres east of Hole 8, and intersected the Sylvinite, Intermediate and Kainitite zones of potash mineralization.
The mineralized area in this region is now at least 4 kilometres long by 5 kilometres wide, said Allana, and has the potential to add significantly to the property resource.
The area was not drilled previously, and was not included in the last resource estimate completed in 2008, which estimated 73.9 million tonnes of kainitite mineralization and 31.3 million tonnes of sylvinite resource for a combined 105.2 million tonnes, with a composite grade of 20.8 % KCl.
The company, whose stock on the TSX Venture Exchange jumped 3.31%, trading at $1.87 per share as of Monday afternoon, said it is continuing to drill in the unexplored eastern region of the property to test for further potash mineralization.