40 Year Mine + CountingANBCA you are so right...the southwest portion is the area in question and will prove up to be 5km x 5km and with the infill drilling will allow Ercosplan to apply a larger radius to the upper level with the higher % of KCL...
Better days are ahead for Allana...Ercosplan confirms that the Kainitite Layer of potash is the primary layer of potash and is continuous throughout our land...so the four holes that have been drilled in the east should confirm a new zone for Allana...the question is how deep and what grade of KCL?
From ANBCA's assessment
"All that is needed is to drill 6 or 8 infill holes in the richest area to date and this will give a more accurate resource for that given area. Not skewed towards the lower zones with less KCI%. If the upper zones prove to be contiguous then the KCI % will rise substantially and the question of minable grades will be put to rest. With several of the last holes yielding higher % there is little doubt that a mine will be operating here in short order. Will it have a 10, 15 or 20, or 50 year mine life and at what tonnage per year remains to be seen"When you look at the Dundee Report below you can see that AAA has 245 million tonnes in the inferred KCL category...by back fill drilling 4 to 6 more holes we can increase the 125.6 million tonnes M+I in a big way...easily double it!!
Right now we have 81.6 million tonnes of KCL M+I = 2 million tonnes per year for 40 year mine life+++
The game changer is going to be if it can be Open Pit Mined and we get a 90% recovery rate?
I do not think Stan Bharti or Diane Walters or Eric Sprott or Farhad or any insider sold today...that tells me all I need to know about their continued confidence in this companies vision, assets and long term World Class Potash
Mine(s)....and dont be fooled by anyone trying to imagine that the confirmed Measured and Indicated KCL from the resource estimate is worth less than $5.00 per tonne...($3.25 per tonne + $1.00 for potash being $100 higher than last year + .75 cents for our SOP selling for $150 per tonne premium to MOP) and that is without a premium for the $8.50 per share Allana shareholdes save on Capex for mine construction....
From the Dundee Report today Allana upgrades resource to:
125.6 m tons M+I x $5.00 per ton = $628 m / 200 m shares AAA = $3.15 per share+
That is just for the pounds in the ground and you have to add a premium for costing $8.50 per share lower for our capex to get into production compared to Potash One's projected costs in Sask.
Exhibit 1 Dundee Report June 20, 2011
: Allana Potash - Updated Resource Estimate
% KCL Inplace Sylvinite Contained KCL Recoverable KCl Total M&I Resource 18.7% 673.2 million tonnes 125.6 million tonnes 81.6 million tonnes
(Total Inferred Resource ) (1.269 BILLION Tonnes) (245.0 million tonnes) (159.0 million tonnes)