TSXV:AAA.P - Post by User
Post by
loonie4buckson Feb 09, 2010 9:45pm
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Post# 16769376
Research Spotlight - $1.15 target
Research Spotlight - $1.15 target
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| Allana Resources Inc. (AAA-TSX) | Speculative BUY – Target: $1.15 |
| | Feb. 08/10 closing price:
.330 |
| Michael G. Fowler, M.Sc, MBA | 416-964-4440 |
| Allana Resources Expects To Start Drilling In March - Neutral News: The Company updated the street on its exploration activities. The main component of the news is that drilling should start at the end of February or the beginning of March, which is more likely. This timing is pretty well expected. Progress has been hampered by damage to the access road to the project. The road is being repaired by the Ethiopian government. The objective of the drilling is to increase the confidence of the inferred mineral resource of 105.1 million tonnes grading 20.8% potassium chloride. 3,000 metres of drilling are contemplated. The potash price has been in the newspapers lately and is showing signs of having bottomed and is now rising, which is a positive. Also in the news is BHP who is in the process of buying Athabasca Potash. The knock-on effect for Allana is that it may become a target as well. BHP incidentally owns ground adjacent to Allana in Ethiopia. We continue to rate the shares a Speculative Buy with a $1.15 target. |