TSXV:AAA.P - Post by User
Post by
Karmanowon Oct 17, 2010 6:36pm
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Post# 17574846
Clarification
ClarificationI have just emailed Farhad and our IR Christian to get some clarification on the land in question.
I have asked both of them, "if the Dundee Update Report is accurate regarding the map on page 3?"
If it is then we know what is happening, if it is not then I will insist that Allana ask for a correction by Dundee as it is misleading to shareholders and investors, and wonder if it is wrong why it would not have been corrected at time of release....makes you think! The other parcel to the east of this one has as much as our parcel as indicated by Parsons drill results and would also be a very good tuck in....but one parcel at a time boys....
When the report came out it was TNT that caught that this parcel in the red triangle was the same land shown on our website belonging to Sainik. It is also important to know that Sainik promised the Ethiopian Govt a Bankable Feasibility Study for a MINE that was to be completed by mid 2010, I do not believe this was done and maybe this parcel has been revoked from Sainik as the Govt wants Allana to develop a mine here? Allana's mine is budgeted to be $800 million so Sainiks $451 million was very low as the drilling required to prove up an N1-Compliant Report would use $200 million of that money.....leaving them @$200 to build a mine.....not.
Plat thickens, will post confirmation either way if I get one.
Karma
..."According to Ethiopia's Reporter Newspaper the mining license grants Sainik an exclusive right for a large scale potash mining within the license area, 10 sq. km for twenty years. The company has also acquired exploration rights for potash and other saline minerals, such as magnesium and calcium
Sainik plans to start production in the next two to three years and will be presenting a Bankable Feasibility Study (BFS) to the Ethiopian government in nine months time.According to Sainik Director Nitin Wagh, his company anticipates producing one million tonnes of potash per year by and a total of 20.85 million tonnes of potash in the next twenty years. The company plans to use solution mining/evaporation pond techniques to work the deposit. The agreement signed between the company and the Ethiopian government indicates that Sainik has set aside US $451.2 million for the project."
Taken from the Original Dundee Report of November 2009:
"The Sainik Coal Company purchased its concessions assuming it could use the same open pit techniques it used for its coal operations. The company's management failed to understand the complexities of potash mining and have not begun to "prove" their resource through any geological studies. Furthermore, the company massively underestimated mine construction costs and has stated that it does not believe it will proceed with the project. Regardless, there are too many drill holes in their concession and it is the opinion of Ercosplan, the engineers who did the 43-101 for Allana, that as a result of over drilling, it would be difficult to build a mine on Sainik's property.