Argentina #2 Mr. Hite (CEO of Marifil Mines) adds “In K2, we have good reason to believe there are 200 million tons of potash recoverable by underground solution mining. The completion of an NI 43-101 report on the same project. The primary down-hole tool for measuring the presence of potash is a gamma ray log which directly detects potassium salts in great detail. This 99,964.9 hectares is located in the Neuquen Basin in Argentina
Potash today is worth about $450 a ton. If you multiply those you’re getting a very, very big number,” he explains. That “very, very big number it is actually, $90 billion.”….”This discovery is based on careful analysis of oil well logs and structural analysis" commented Mr. John Hite, President of Marifil Mines. "Since the oil wells are located to test deeper oil targets they are essentially random with respect to the location of the shallower K2O target. This means that we may not have yet tested the thicker and richer portions along the axis of this basin. Further, we can demonstrate excellent stratigraphic correlations of these holes. Mineralization is probably present over a 200 square kilometer area and mineralization is still open ended; these factors suggest we may have made a major potash discovery." The two holes reported above, along with the two holes reported in the Marifil news release dated July 7, 2008, define an area 18 kilometers long in a north-south direction and 13 kilometers wide in an east-west direction. All four holes show excellent stratigraphic correlations with each other.
(K20% x 1.6 to convert to KCL%) Marifils K2 Land Package contains 2 layers of potash:
Marifil’s claims are highly prospective for potash mineralization as well as O & G. Since the claims are 50km from Vale's PRC and were staked by the same man who discovered Potasio Rio Colorado years ago, The claims were staked on historic old oil well data that is publicly available so were chosen on “a priority basis” and K1 was chosen first from all the data available to Mr Hite…and now Allana owns his first choice of land…the 3 blocks of land that make up K1…hmmm
Marifil owns the K2 claims (99,964 hectare) ~100km south of Vale’s 2 Billion ton Potasio Rio Colorado Project PRC in the province of Neuquen. Shown on the map as “Vales Claims” and on the map below shown in yellow and light blue (former bunge lands now owned by Vale)…huge…
Allanas 3 properties are shown on
The attached map and are in the bright GREEN Color (labeled marifil but now owned by allana)
/docs/AAA_Map01_528.pdf
(map of Allana’s Argentina Potash Blocks and Neuquen Basin)
/docs/AAA_Map01_528.pdf (map of Argentina Potash Basin)
The map shows the various property owners near our property. (the map originates from our neighbour Marifil Mining and is very outdated and does not show the current owners but is the only reference to show the actual land packages as indicated below:
As Shown on Map:
RTZ = (Rio Tinto Claims) = (yellow and tan on map) = Vale/Inco current owner
Bunge = (blue on map) = Vale/Inco current owner paid $850 million for 400 million tons of
potash
CVRD = (purple on map) = CVRD current owner
Marifil K1 = ( green on map) sold to Latin American, Latin American bought out by = Allana
Potash owner
Marifi K2 = (south of Pampa de Salado) Marifil is current owner -
Marifil K3 +K4 = Owned by Marifil - new purchase: location in the north of basin 100km north of our land.
Important to see that our upper block of land is very close to Vale’s 2 billion ton resource….hmmm and again, like Ethiopia…on the western shoreline of the evaporate basin…
And may contain the two potash layers at a shallower 500 m deep.
It gets more interesting with Allana’s lower block of land from the K1 deal…and where it is located…just above Marifils K2 property…18km x 13km identified resource…(it is shown as the section of red boxes on the map above)
It has completed an NI Resource Estimate and the CEO claims..200 million tons of recoverable potash worth $90 Billion….yes he said…$90 Billion…hmmm
K2 PROPERTY 2 MILES SOUTH OF ALLANA’S LAND
| Well | Depth | Intercept and Grade |
| Conin X1 | 1,306.7m to 1321.2m | 5.8m @ 24.3% KCL or 15.22%K20
5.4m @ 18.4%KCL or 11.5% K2O |
| Pillantoqui X1 | 1408.2m to 1421.7m | 10m @ 19%KCL 11.7% K2O
1.6m @ 22.4%KCL 14% K2O |
| Quilimalal X-1 | 1280.3m to 1291.6m | 7.7m @ 23.1%KCL 14.45% K2O
1.6m @ 24%KCL @ 15% K2O |
| Pasa Hacha X-1 | 1498.8m to 1497.9m | 3.1m @ 18.1%KCL 11.35% K2O
1m @ 21% KCL 13% K2O |
K2 Land (just south of Allana’s lower block) vs. Western Potash’s Milestone…
Potash’s Milestone in Saskatchewan. Just remember, WPX is trading at over a dollar per share currently…and Allana has the potential to also have a comparative property in Argentina. One major advantage Argentina has over Milestone is logistics. Argentina potash production is destined for Brazil which eliminates a huge cost in shipping out of the Canada whose costs range from $60 - $80. That is what it costs to pull it out of the ground for most operations giving any potash project whose product is destined for the Brazil market a huge price advantage.
| | Milestone –Sask. | K2 - Argentina |
| Combined widths | 16 – 21 meters | 8 – 12 meters |
| Depth of horizons | 1700 – 1900 meters | 1200 – 1500 meters |
| Grade | 19% K2O | 12 - 15% K2O |