Allana Announces Drill Results From Nova License and Continues to Expand Potash Mineralization
October 28 2013 - 7:00AM
Marketwired Canada
Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") announces
drill results from 20 core holes completed on the Nova license acquired by the
Company in 2012. The Company initiated its program late in 2012 and completed 20
core holes totaling 5119 metres. Analytical results have been compiled and
potash mineralization extends both south and west from Allana's core license
onto the Nova license. Drilling highlights include hole DM-13-29 which returned
2.50 metres of 28.3% KCl in the Sylvinite Zone, hole DM-13-30 which yielded 1.90
metres of 34.5% KCl in the Sylvinite Zone and hole DM-13-37 which returned 4.50
metres of 21.6% KCl in the Sylvinite Zone.
Farhad Abasov, President and CEO, commented "we are very pleased with the
results from the exploration drilling on the Nova license. Drill results
indicate the extension of Sylvinite and Kainitite mineralization south and west
of the original Allana license with Sylvinite primarily located in the west,
which management believes has the potential to be incorporated into our mining
plan. Results indicate that kainitite is widespread, which we believe may add
significantly to potential future mineral resource estimates."
Allana-Nova Drilling Results
Prior to Allana's acquisition of Nova, Nova completed 21 drill holes on its
exploration license totaling 2122 metres (see Figure 1). Nova drilling was
concentrated on the western portion of its license and the program was designed
to delineate extensions of the Musley Deposit as well as outline the limits of
the evaporite basin. Generally, the Allana drillholes on the Nova ground
intersected similar stratigraphy to that outlined by drilling on the Allana
license. Drilling has now defined the western edge of the basin where Sylvinite
distribution is variable however Kainitite is present throughout the basin. (see
Table 1 below). All holes were drilled vertically and 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.
Drill results have been incorporated into the Allana database and Allana expects
to incorporate Nova results into an updated mineral resource estimate in the
coming months.
Table 1 Summary of Allana drilled holes on previous Nova license.
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HOLE FROM (m) TO (m) WIDTH (m) KCL (%) ZONE
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DM-12-22 86.00 92.00 6.00 5.49 CAR
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112.00 115.00 3.00 15.23 KAIN
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DM-12-23 74.20 77.20 3.00 13.82 CAR
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77.20 81.70 4.50 17.25 KAIN
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DM-12-24 534.72 543.06 8.34 8.77 CAR
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582.60 588.60 6.00 26.67 KAIN
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DM-12-25 552.60 557.10 4.50 11.01 UCAR
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575.10 590.10 15.00 10.58 LCAR
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594.60 600.60 6.00 22.56 KAIN
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DM-12-26, 27, 28 NSV
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DM-13-29 77.51 80.01 2.50 28.27 SYL
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83.01 90.51 7.50 19.64 KAIN
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DM-13-30 107.01 108.91 1.90 34.51 SYL
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108.91 111.51 2.60 17.76 UCAR
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116.56 123.51 6.95 19.31 KAIN
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DM-13-31 83.95 84.35 0.40 21.85 SYL
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84.35 89.32 4.97 14.90 U&L CAR
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89.92 98.05 8.73 15.22 KAIN
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DM-13-32, 33 NSV
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DM-13-34 74.15 79.95 5.80 16.80 KAIN
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DM-13-35, 36 NSV
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DM-13-37 366.40 370.90 4.50 21.64 SYL
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370.90 372.30 1.83 18.80 UC
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445.47 448.90 3.43 9.44 LC
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448.90 457.90 9.00 22.13 KAIN
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DM-13-38 488.50 499.20 10.70 8.47 UC
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550.30 554.50 4.20 5.50 LC
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554.50 560.50 6.00 24.10 KAIN
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DM-13-39 63.50 65.00 1.50 40.84 UC
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409.19 416.00 6.81 6.43 UC
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425.65 428.55 2.90 11.65 LC
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454.16 461.60 7.44 21.47 KAIN
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DM-13-40 370.55 371.65 1.10 13.68 UC
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372.65 380.91 8.16 16.19 LC
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384.41 393.13 8.72 20.30 KAIN
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DM-13-41 67.79 68.97 2.37 20.08 SYL
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74.15 75.89 1.74 14.49 LC
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75.89 82.80 6.91 19.86 KAIN
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(i)Drilled width, NSV=No Significant Values
Nova Hydrogeological Study
Evaluation of water resources was expanded on to the Nova license in 2012 as
initial studies on the Allana license indicated an eastward flowing aquifer was
feeding the main alluvial fans on the Allana license. To evaluate this water
resource, 8 observation wells and 2 pumping/production wells were drilled and
pumping tests indicate water flow at rates of 110m3/hour or more (pump capacity
was 110m3/hour) (see Figure 1). This data was incorporated into the Feasibility
Study, which together with data from the Allana license, outlines a potential
reservoir of 160 million cubic metres of water and an annual recharge rate of 35
million to 55 million cubic metres (see press release Jan.7, 2013). Water
requirements for the 1 MTY Muriate of Potash operation are estimated at 18.5
million cubic metres.
Release of Escrowed Shares pursuant to Nova Merger Agreement
In addition, Allana announces that pursuant to the terms of its merger agreement
with Nova (see press release dated November 1, 2012) Allana shall release
28,240,488 of the Allana Escrowed Shares to the former shareholders of Nova
common shares and shall cancel 7,369,484 of the Allana Escrowed Shares effective
November 1, 2013. Following the release of the Allana Escrowed Shares, all
obligations of the merger agreement shall have been fulfilled.
A map of the Allana Potash Corp. - Selected Drill Results, Oct. 25, 2013, is
available at the following address:
http://media3.marketwire.com/docs/Allana_Drill_Results.jpg.
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 estimated measured and indicated Sylvinitemineral resources of 327.4 million
tonnes of 28.3% KCl; and an estimated inferred Sylvinite mineral resource of
90.8 million tonnes grading 27.8% KCl, In addition, the Danakhil Project hosts
estimated measured and indicated Kainitite mineral resources of 1,150.5 million
tonnes at 19.4% KCl, an estimated inferred Kainitite mineral resource of 481.8
million tonnes of 19.8%KCl; estimated measured and indicated Upper Carnallitite
mineral resources of 411.3 million tonnes grading 17.3% KCl, estimated inferred
Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl;
estimated measured and indicated Lower Carnallitite mineral resources of 557.2
million tonnes of 9.2%KCl, and estimated inferred Lower Carnallitite mineral
resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral
resource estimates 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 "Resource Update for the Danakhil Potash Deposit,
Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed
under the Company's SEDAR profile at www.sedar.com on August 7, 2013. Allana has
approximately 277.7 million shares outstanding. Allana trades on the Toronto
Stock Exchange under the symbol "AAA".
Quality Control and Quality Assurance
Allana employees follow standard operating and quality assurance procedures
intended to ensure that all sampling techniques and sample results meet
international reporting standards. Procedures for handling core samples begin
with securing the potash-bearing HQ-NQ-sized core at the drill site in plastic
poly-tubing which is then thermally sealed. Core is placed in plastic core boxes
and transported to Allana's camp for geological logging, geotechnical logging
and photographing. Significant intervals are dry cut in half using a specially
modified tungsten carbide bladed band-saw. Half core samples are then double
bagged and thermally sealed prior to transporting to Addis Ababa by Allana
personnel. In this initial phase, halite blanks are randomly inserted into the
sample stream at a rate of 1 in 20 and sent for analysis with the core samples.
The remaining core is re-sealed in plastic poly-tubing and the core boxes
secured at Allana's exploration camp. Upon arrival in Addis Ababa core samples
are stored at Allana's small warehouse facility and then taken to the Ethiopian
Ministry of Mines & Energy where permission is obtained to export the samples.
The bagged samples are then carefully packed into boxes and shipped via DHL to
the Saskatchewan Research Council in Saskatoon. This sampling procedure was
initiated by ERCOSPLAN Ingenieurgesellschaft Geotechnik und BergbaumbH, Allana's
potash consulting firm, supervised by Allana's Ethiopian based Project Manager
Jason Wilkinson, M.Sc., and periodically reviewed by Allana's Senior Vice
President of Exploration, Peter J. MacLean, Ph.D., P. Geo.
Allana is utilizing SRC's Potash ICP Analysis package designed for multi-element
analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories, core
samples are jaw crushed to 60 % @ -2mm and 100 g sub sample is split out using a
riffler and transferred to vials. The subsample is pulverized to 90 % @ -106
microns using a puck and ring grinding mill to create a pulp. The grinding mills
are cleaned between groups using Quintus quartz. The pulp is then transferred to
a labelled plastic snap top vial. An aliquot of pulp is placed in a test-tube
with 15 ml of 30 degrees C DI water. The sample is shaken. The soluble solution
is then analyzed by ICP-OES. The method is suitable for the soluble analysis of
commercial potash (Sylvite). The soluble solution is then analysed by ICP-MS. In
addition, samples are analysed for FeO (wt%), Br and Cl by MS, plus insolubles.
SRC Geoanalytical Laboratories has been certified by the Standards Council of
Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).
Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the
Company's designated Qualified Person and has reviewed and approved the
technical information presented in this release.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Allana Potash Corp.
Richard Kelertas
Senior Vice President, Corporate Development
514 717 6256
rkelertas@allanapotash.com
www.allanapotash.com