First Tidal Acquisition Corp T.AAA

RECAP FROM DK-10-06

[sbergie]

Allana Potash (TSXV: AAA) makes significant progress with drilling program
by Ubika Research on Dec 16, 2010
Allana continues to make significant progress with the exploration program currently underway at its Ethiopian Potash project. Last week, it announced that drill hole DK-10-06, located in the southwestern centre of the evaporite basin, intersected two significant zones of potash mineralization. Hole DK-10-06 intersected 30.9% KCl over 3 metres, and 24.5% KCl over 4.2 metres in two distinct intersections at relatively shallow depths beginning at 495 metres. The lower interval occurs within a thick potash sequence that returned 17.3% KCl over 17.7 metres.
Ubika Research believes that these results are significant as they indicate the presence of strong zones of potash mineralization in the evaporate basin. More importantly, the hole DK-10-06 was drilled in a part of the evaporite basin that has no past exploration. This further strengthens our view that the potential potash deposit at Allana’s potash project could be substantially higher than was previously anticipated based on the past drilling. We believe that this hole further demonstrates that Allana's potash project has the potential to hold a significant potash resource deposit.
The company also recently completed a seismic program and is awaiting the seismic interpretation that will greatly facilitate the process of assessing the potential in the project.
We believe that successive drill holes are finding rich potash mineralization at Allana’s potash project. The drilling so far also confirms that Potash is found near surface and the deposit remains open in all direction, which is a strong positive. More drilling will likely provide more evidence supporting this assertion and will help in discovering new potash bearing zones.
Ubika Research believes that all drilling results so far are moving in the right direction to conclusively confirm the existing NI 43-101 compliant inferred resource base of 105 million tonnes. A strong evidence of deposit extension can also mean that there exists a strong potential to expand the resource base significantly, potentially by several times, as new potash bearing zones are discovered.
The company also recently announced (on November 30, 2010) the closing of a non-brokered private placement of C12.4 million with Liberty Metals & Mining Holdings, LLC ("LMM"), a subsidiary of Liberty Mutual Group. This financing will greatly facilitate and expedite the drilling program and feasibility study for the Company's main asset, its Ethiopian potash property in the Danakhil evaporate basin.
Ubika Research believes that this financing provides strongly validates the investment potential in Allana Potash and confirms its exploration potential. A financing of this size from a reputed group like Liberty Metals & Mining Holdings generally involves extensive due diligence by the investor. We believe that this type of investment is a strong endorsement of Allana’s plans and provides further proof that the company is attracting serious attention in the market.
Allana Potash is one of the few junior potash exploration companies with real potential to move towards production. We understand that its main short-term goal is to finish the initial stage of exploration program and hopefully produce an updated NI 43-101 report by the end of the first quarter of next year. The company is in the midst of an active drilling session at its Ethiopian property and there could be potential short term catalysts as the drilling program continues.
We believe that the demand for fertilizer is expected to continue its secular uptrend. This is bringing attention to potash deposits for large mining companies including BHP Billiton (NYSE: BHP) and VALE (NYSE:VALE) as these mining conglomerates scout for high quality potash assets worldwide. We believe that companies like Allana Potash will continue to attract attention due to its exploration potential, its current potash resource deposit and its proximity to the land holdings owned by BHP Billiton in the evaporite basin of the Danakhil Depression. As it moves its project through the exploration and development phases, it can become an attractive target for major mining companies and investment groups looking for high potential potash assets.
Ubika Research first highlighted the investment potential in Allana Potash in its initiation report published on February xx 2009. All research reports are available for free download HERE.
Our CEO video interview with Allana Potash’s President & CEO, Mr.Farhad Abasov is available here.