Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF)("Allana" or the
"Company") announces that this press release corrects and replaces
the press release that was sent today at 7:00 a.m. ET which was
entitled "Allana Announces Updated Mineral Resource Estimate:
Measured+Indicated Mineral Resources Increase by Over 90% to 2.4
Billion tonnes; Inferred Resources Increase by 94%". The news
release incorrectly stated the density used for the Kainitite
resource resulting in the non-material changes set out in the title
to this news release and below (as underligned).
The measured and indicated mineral resource estimate totals
2,446.4 Million tonnes with an average grade of 17.9 % KCl,
representing approximately 438 Million tonnes of KCl. This is more
than an 85% increase over the April 2012 measured and indicated
mineral resource estimate of 1,297 Million tonnes at an average
grade 19.3% KCl, and close to a doubling of the KCl tonnes in these
resource categories (see news release dated April 30, 2012) (the
"April 2012 report"). In addition to the strong increase in
estimated measured and indicated mineral resources, the inferred
mineral resource estimate for all four potash units is an
additional 1,117,400,000 tonnes grading 15.9% KCl. This represents
a 90% increase in the inferred mineral resource estimate as well as
a 63% increase in contained KCl to approximately 178 Million
tonnes. A summary of the mineral resource estimates is presented in
Tables 1 and 2 below.
The increase in estimated measured and indicated mineral
resources was dominated by increases of over 80% in both categories
with the revised measured mineral resource estimate totaling
approximately 1,024. Million tonnes containing 182 Million tonnes
of KCl versus 567.82 Million tonnes of measured mineral resource
and approximately 107.1 Million tonnes of KCl delineated in the
April 2012 report.
In particular, the measured and indicated Sylvinite mineral
resource estimate increased over 90% to approximately 327,400,000
tonnes with an average grade of 28.3 % KCl. This mineral resource
estimate is consistent with the measured and indicated Sylvinite
mineral resource estimate utilized in Allana's recently released
Feasibility Study (see press release date Feb. 2, 2013 and
technical report filed on SEDAR on March 19, 2013) and forms the
basis for the estimate of Sylvinite reserves.
Farhad Abasov, President and CEO, commented: "We are excited to
see the large increase in total mineral resources on the project
and the significant conversion of inferred mineral resources into
measured and indicated mineral resource categories. Potash
resources continue to expand with our exploration activities which
are ongoing on the Nova license. We are encouraged that significant
additional mineralization of Carnallite and Kainitite have been
delineated and will initiate further studies on these resource
estimates. Exploration drilling continues on the Nova license with
three holes remaining in this program, after which a revised
mineral resource estimate is scheduled for completion."
The mineral resource estimate is based on drilling conducted by
Allana in 2010-2012 (60 holes), on the core Allana license, 28
drill holes completed on the Nova license and the historic drill
holes completed by the Ralph M. Parsons Company (Parsons) in the
1950s and 1960s. The April 2012 report included 45 Allana drill
holes and the Nova license was acquired in November 2012 therefore
data from additional drilling on the Allana license, as well as
data from the Nova license are now included in this mineral
resource estimate update. The top of the potash sequence is
identified by the Sylvinite Member, followed by the Upper
Carnallitite Member (UC), the Bischofitite Member, the Lower
Carnallitite Member (LC) and the Kainitite Member.
Table 1: Estimated Measured & Indicated Resources effective
as of April 17, 2013
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RESOURCE
TONNAGE KCl TONNAGE
% INCREASE CONTAINED % INCREASE
IN-SITU OVER KCl OVER
TONNAGE KCl April 2012 TONNAGE April 2012
CATEGORY POTASH MEMBER (MT)(i) (%) ESTIMATE (MT) ESTIMATE
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MEASURED Sylvinite 115.3 27.8 32.1
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Upper
Carnallitite 121.5 17.5 21.3
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Lower
Carnallitite 235.0 9.7 22.8
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Kainitite 552.3 19.2 105.9
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SubTotal 1,024.1 17.8 80.3 182.1 68.5
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INDICATED Sylvinite 212.1 28.6 60.7
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Upper
Carnallitite 289.8 17.2 49.9
----------------------------------------- ------------
Lower
Carnallitite 322.2 8.9 28.7
----------------------------------------- ------------
Kainitite 598.2 19.5 116.8
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SubTotal 1,422.3 18.0 94.8 256.1 75.7
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TOTAL MEASURED+INDICATED 2,446.4 17.9 88.4 438.2 74.5
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Table 2: Estimated Inferred Resources effective as of April 17,
2013
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IN-SITU TONNAGE KCl CONTAINED
CATEGORY POTASH MEMBER (MT)(i) (%) KCl (MT)
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INFERRED Sylvinite 90.8 27.8 25.2
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Upper Carnallitite 175.5 16.5 29.0
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Lower Carnallitite 369.3 7.7 28.3
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Kainitite 481.8 19.8 95.3
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TOTAL INFERRED 1,117.4 15.9 177.8
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Cautionary Notes:
1. MT=Million Tonnes, tonnage is for in-situ resource with no discount for
recovery as mining method is to be determined. Potash deposits have been
mined by underground, open pit and solution mining methods, a Feasibility
Study has indicated solution mining and solar evaporation are the optimal
mining methods.
2. The numbers for tonnage, average KCl per cent are rounded figures
3. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.The estimates of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues.
4. The quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these inferred resources as an indicated or measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an indicated or measured mineral resource category.
5. Average densities used in resource calculations are 2.14, 1.81, 1.91, and
2.10 g/cm3 for the Sylvinite, UC, LC and Kainitite members respectively
The measured, indicated and inferred mineral resource estimate
was reviewed and optimized by Dr. Sebastiaan van de Klauw, Ph.D.,
EurGeol., who is a "qualified person" as such term is defined in
National Instrument 43-101. He has supervised the preparation,
reviewed and approved, the technical information and data included
in this news release. The mineral resource estimates were generated
using the parameters set out below.
Drill hole intersections must meet the following criteria for
inclusion in the mineral resource estimate:
-- Sylvinite Member greater than 20% KCl, the combined minimum width of
Sylvinite and UC Members over 4 metres
-- UC Member greater than 40% Carnallite, the combined minimum width of
Sylvinite and UC Members over 4 metres
-- LC Member greater than 60% Carnallite+Kieserite, minimum width of 5
metres
-- Kainitite Member greater than 50% Kainite, minimum width of 5 metres
The mineral resource estimates were calculated by extrapolating
grades and widths using the Radius of Influence (ROI) from each
Allana drill hole and historical drill holes based on industry
standards for potash exploration. This process starts with the
interpretation of the Radius of Influence of each exploration hole.
The following ROIs were used for the calculation of the area of
mineralized material in each of the resource categories:
-- Sylvinite, Upper Carnallitite Members
-- Measured Resource 350 metres
-- Indicated Resource 750 metres
-- Inferred Resource 1500 metres
-- Lower Carnallitite, Kainitite Members
-- Measured Resource 500 metres
-- Indicated Resource 1000 metres
-- Inferred Resource 2000 metres
For historical drill holes, an ROI of 750 metres was used for
inferred mineral resources in the different members.
The difference in ROI between the two groups is directly related
to the geology of the evaporite mineralization. The Sylvinite and
UC members are interpreted to be secondary deposits formed from
carnallite and therefore not as uniform as a primary evaporite
deposit. The Kainitite and LC members are formed by primary
evaporite deposition and are relatively consistent throughout the
Allana property. Due to this consistency, there is a greater degree
of confidence in the lateral extent of the mineralization of the
Kainitite and LC members and the ROI can be increased.
A copy of the Technical Report prepared in accordance with NI
43-101 supporting the updated mineral resource estimates will be
available under the Company's profile on SEDAR (www.sedar.com)
within 45 days of this news release. The mineral resource estimates
were estimated by Dr. Henry Rauche, Ph.D., EurGeol, Managing
Director, CEO ERCOSPLAN and Dr. Sebastiaan van de Klauw, Ph.D.,
EurGeol., Consulting Geologist, ERCOSPLAN. Dr. van de Klauw is the
Qualified Person for the purposes of National Instrument 43-101
Standards of Disclosure for Mineral Projects of the Canadian
Securities Administrators, and has reviewed and verified the data
disclosed in this news release.
Exploration Update
Allana continues to conduct exploration drilling on the Nova
license with 17 holes completed to date and 3 holes pending. Data
compilation and analysis from earlier holes are ongoing and results
will be released upon completion of the entire program. Pilot
solution wells continue to produce sylvinite crystal product on
site which is being utilized as test material to optimize
processing parameters.
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 as at February 2, 2013
of 327.4 million tonnes of 28.3% KCl; and inferred Sylvinite
resource of 90.8 million tonnes grading 27.8% KCl, (see Allana's
Technical Report entitled "Summary of the Feasibility Study for a
Solution Mine on the ALLANA Potash Project, Danakhil Depression,
Afar State, Ethiopia" dated March 19, 2013, effective February 4,
2013). In addition, the Danakhil Projects hosts measured and
indicated Kainitite resources of 1,150.5 million tonnes at 19.4%
KCl, inferred Kainitite resource of 481.8 million tonnes of 19.8%
KCl; measured and indicated Upper Carnallitite resources of 411.3
million tonnes grading 17.3% KCl, inferred Upper Carnallitite
resource of 175.5 million tonnes of 16.5% KCl; measured and
indicated Lower Carnallitite resources of 557.2 million tonnes of
9.2% KCl, inferred Lower Carnallitite resource of 369.3 million
tonnes grading 7.7% KCl. The foregoing mineral resource estimates
with respect to Kainitite and Carnallitite are as at April 17,
2013. For more information with respect to the data verification
procedures undertaken and the key assumptions, parameters and risks
associated with the foregoing estimates refer to Allana's Technical
Report entitled "Updated Resource Report for the Danakhil Potash
Deposit, Afar State/Ethiopia" dated effective April 17, 2013 to be
filed within 45 days of this release and the Allana's Technical
Report entitled "Summary of the Feasibility Study for a Solution
Mine on the ALLANA Potash Project, Danakhil Depression, Afar State,
Ethiopia" dated March 19, 2013, effective February 4, 2013. filed
at www.sedar.com. Allana has approximately 276.45 million shares
outstanding. Allana trades on the Toronto Stock Exchange under the
symbol "AAA".
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. 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.
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 press release.
Contacts: Allana Potash Corp. Richard Kelertas Senior Vice
President, Corporate Development 514
717-6256rkelertas@allanapotash.com