potential to add resources
Allana Potash (CVE:AAA) announced Wednesday that it has intersected strong potash mineralization in an area not previously drilled, at its Dallol project in Ethiopia. Hole Dk-11-20, located in the eastern portion of Allana's property, returned 23.7% KCI, or potash, over 6.56 metres from the Kainitite Zone. Mineralization was intersected from 472.34 metres to 478.90 metres below surface. "The presence of strong potash mineralization in the eastern part of the property suggests strong continuity of the potash horizon and the deposit remains open in all directions," the company said in a statement. There has been no previous drilling in the 18 square kilometre area, with no resource yet been calculated, and Allana believes there is significant potential here for additional resources due to the consistent nature of the Kainite Zone. Kainitite, as well as sylvinite, are two important ores for the production of potash. "Allana is extremely encouraged by the zone of kainitite intersected in Hole 20 in a region of the property that has been unexplored to date," said president and CEO, Farhad Abasov. "This area has experienced no previous drilling and the potash intersection validates our interpretations on the strong continuity of the potash throughout the southern part of the basin." Following road construction to allow further access to the eastern boundary of the property, additional drilling is planned to determine if a large, shallow potash resource would be amenable to open pit mining. Plans for a feasibility study for the project are underway, with work expected to start in a few weeks, the company said. Meanwhile, exploration drilling is continuing in the central western part of the as part of the infill drilling program designed to add resources and increase confidence in current resources. The Dallol project is located in the northeastern region of Allana Potash's Danakil Depression in Ethiopia. Totaling approximately 150 square kilometres, the project is about 100 kilometres from the Red Sea coast, and 600 kilometres from the deep water port in Djibouti. An updated NI 43-101 compliant resource report in late June estimated total measured and indicated resources of 673 million tonnes, with an average grade of 18.65% potash, or KCI, (the composite grade of all four potash-bearing beds including sylvinite, upper and lower carnallite and kainitite). Inferred mineral resources now stand at 596 million tonnes with an average grade of 19.96% KCI.
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