First Tidal Acquisition Corp T.AAA

Timing Is Everything - "2"

[Karmanow]

I will attempt to make a long story short as they say....The Ercosplan Report opened my eyes to several facts that I believe are material to AAA shareholders that believe that we will develop a world class mine.
Ercosplan indicated that they concluded that they were comfortable in using a 0.75km radius for each drill hole used in the resource calculation for Allana's property in the Musley. This appears to be a double edged sword for shareholders. First, it appears by only using a 0.75 km radius or 750 meter radius to calculate the inferred potash, (thus the 105 million tons inferred), Allana only paid $2.5 million dollars to purchase the property, and issue AAA , (good for share holders). Ercosplan states "this is a reflection of the uncertainity in the Danakhil deposit continuity characteristics." 
Secondly, the 750 meter radius calculation gave us the 105 million ton inferred resource that we have to start with. On page 91 they state," the authors consider that only inferred class of resources can be given not extending behond 750 meters of a drill hole." This is important as the geologist points out on page 104 they used a 3.2 km radius for each drill hole for calculating the Anglo/BHP Saturn Property in Sask., and used an 8.0 km radius for each drill hole for calculating the Potash One Property in Sask. ( 40 million tons Indicated and 391 million tons Inferrred) The Geologist said that they are more comfortable in understanding the unlying geology in Sask. If the Ercosplan used the 3.2 km radius in calculating our inferred resource it would have been 4 times as much inferred ( 3.2km / 0.75km = 4 times) and equal to "400 million tons" and not the "105 million tons" they calculated in their report. I wonder if we would be trading at 40 cents if we had the same inferred resource as Potash One??
I believe that because of Ercosplan being very conservative in their calculations, it provides us the opportunity to realistically assume that our current drill program will define the boundaries of a much larger amount of potash that will comply with modern methodology and be N1-Compliant for Measured and Indicated reserves. I believe that the pending Resource Estimate, using our drill results will NOT be bound to the 750 meter radius and likely will be 2 to 4 times greater in their permitable radius in defining the resource! 
Ercosplan are more comfortable in their estimations that the potash is richer nearer to the boundaries of the basin.
They believe ( page 63) that the Kainite Layer may fault in the southern part of the basin because of plate techtonics shifting and adjusting the depth and continuity of the layer, so I am less optimistic regarding hole #5 for this reason and as it is a wild cat drill hole. They do state that (page 37) the german company - Salzdetfurth drilled only one hole 25 km to the southeast of Mt Dallol and it only reached the Kainitite member without intersecting the Sylvinite Member. This is material as 25 km southeast is even more southern than our hole #5. Ercosplan believe that the potash layers thin toward the south of the basin and thus I am less confident as you might be as well in the drill results for #5 (important to expect less in the south and more in the north west!)
The last and in my oppinion most important point they raise is related to the Sainik Property. They believe that with Parsons previous drilling results (south of our holes #1,#2 and #3) and the Sainik lands east of us in the Crescent area (page 76) "suggests that the Musley deposit will also be present with comparable thicness and grade, although at slightly grteater depth in the northern part of the Allana property" What this means is the blue rectangle in the dundee report that Allana appears to be buying is directly between Property A and Property B and according to Ercosplan WILL possess similar potash results.....(good for shareholders)
I hope that the deal with Sainik comes first, then the 2D Seismic and results from holes #5 and #6. Securing this piece of property tells me that we would now possess 30% more potash as indicated by Ercosplan and indicate that Sainik is not developing to the mine stage. If this is true, then the land parcel to the west of this parcel and south of drill holes #1 - #3 should be in play and for sale at some point? if it is, add another 30% to the potash numbers as it already has been drilled and has similar values to all other drilling done by Parsons in the north west of the basin. Management appear to be firing on all cylinders and following Ercoplans recommended course of action to prepare for the compliant report and move potash into the Measured and Indicated Categories.
Well hope this helps you as much as it has helped me understand the technical report and its implications....
Karma
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