NEWS 61.26% KCl Over 0.9June 13, 2011 10:37 ET
Allana Potash Intersects New Zone of Potash Mineralization in Southwest With 61.26% KCl Over 0.9 Metres in Hole DK-11-19
- Hole 19 Intersects High Grade Potash Mineralization of 61.26% KCl Over 0.90 Metres Within 7.30 Metres of 37.74% KCl
- This Sylvite-Rich Horizon Represents A New Potash Zone in the Basin and Adds Resource Potential
- Kainitite Zone from Hole 12 Returns 6.83 Metres of 22.30% KCl
- Management Intends to Include Hole 19 Data in the Company's Upcoming NI 43-101 Technical Report
TORONTO, ONTARIO--(Marketwire - June 13, 2011) -Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") ispleased to announce that it has intersected three zones of potashmineralization in Hole DK-11-19 ("Hole 19") in the southwest portion ofAllana's land position. Hole 19 intersected a new zone of potashmineralization which returned 61.26% KCl over 0.90 metres within 7.30metres 37.74% KCl and is referred to here as the Upper Sylvinite Zone,as well as the main Sylvinite Zone and the Kainitite Zone. Thetraditional Sylvinite Zone returned 3.04 metres of 30.85% KCl and theKainitite Zone returned 22.09% KCl over 7.23 metres. The presence ofstrong potash mineralization in the southwestern part of the propertysuggests strong continuity of the potash horizon and the depositremains open to the south and east which management believes increasesthe resource potential in this direction. Remaining analytical resultsfrom Hole 12 were also received and the Kainitite Zone returned 6.83metres of 22.30% KCl. This work will be included in the upcoming updateto Allana's National Instrument 43-101 ("NI 43-101") technical report.
FarhadAbasov, President and CEO, commented: "Allana is extremely encouragedby the new high grade zone of sylvinite intersected in Hole 19 whichmanagement believes adds additional resource potential to our project.Hole 19, with 61.26% KCl over 0.90 metres, returned the highest gradepotash on the project to date. The combined thickness of potashintersected in Hole 19 is approximately 17.5 metres and the potashstratigraphy remains open to the south and east for expansion. Inaddition to strong results from Hole 19, management believes theremaining data from Hole 12 confirms the continuity of the KainititeZone throughout this part of the basin. Allana intends to incorporateHole 19 and remaining Hole 12 data in the Company's upcoming NI 43-101technical report."
Drill Hole 19 intersected three zones ofpotash mineralization comprised of two zones of sylvinite and one zoneof kainitite mineralization. The Upper Sylvinite Zone was intersectedat a depth of 263.50 metres and returned 37.74% KCl over 7.3 metres andincludes a very high grade zone of 61.26% KCl over 0.90 metres. This isthe highest grade potash intersected in the Dallol area to date. Asecond sylvinite zone, which corresponds to the Sylvinite Zone definedby Parsons in the 1960's, was intersected at a depth of 547.35 metresand returned 30.85% KCl over 3.05 metres. The third potash zoneencountered correlates with the Kainitite Zone which was intersected ata depth of 625.47 metres and yielded 22.09% KCl over 7.23 metres.
Inaddition, the remaining results for Hole 12 have been received and thebottom portion of the hole intersected the Kainitite Zone at a depth of419.42 metres. The Sylvinite Zone was intersected at 344.00 metres andthese results have been reported previously (see June 6, 2011 NewsRelease). The Kainitite Zone returned 22.30 % KCl over 6.83 metres andmanagement believes this will add significant potential to increase thepotash resource in this part of the project.
Hole 19 was collaredapproximately 1,600 metres east of Hole 11 and was drilled vertically(see attached figure). Hole 19 occurs in the southwestern portion ofAllana's project area and the deposit remains open to the south andeast as these areas have not been drilled. Strong potash mineralizationin Hole 19 suggests that the potash stratigraphy extends to thesouthern margins of Allana's land position and east into the deeperparts of the basin. Additional drilling is planned to test theseextensions and is expected to be completed in 2011. The mineralizedarea in this southwest region is now at least four kilometres long byfive kilometres wide and has the potential to add significantly to theproperty resource. This area was not drilled previously and was notincluded in the original resource estimate completed in 2008. Samplesare currently being selected for XRD analysis to determine mineralogy.True widths of the potash zones are estimated to be very similar todrilled widths due to the flat-lying nature of the potash horizons. Thezones of potash mineralization are outlined in the following table:
Explorationdrilling is continuing in the far eastern part of the property at Hole23 to test for potash mineralization in this unexplored region of theproperty and Hole 24 in the southwestern portion of the property.Remaining samples from Holes 14, 18, 20, 21 and 22 are undergoinganalysis or are en route to the laboratory in Saskatoon, Canada.
AsAllana reported on June 6, 2011, Ercosplan is making significantprogress with the upcoming NI 43-101 report and resource estimateupdate. Recent discussions indicate that completion of the report is onschedule and is expected to be completed in 5-7 days.