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Allana Potash Corp.
TSX : AAA
OTCQX : ALLRF
March 19, 2012 11:52 ET
Drilling Continues to Intersect Strong Potash Expanding the Deposit and Confirming Continuity
TORONTO, ONTARIO--(Marketwire - March 19, 2012) -Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") is pleased to announce that it has intersected two zones of strong potash mineralization in Holes DK-11-32, DK-11-33, and DK-11-34 ("Holes 32, 33,and 34"). All Holes are located southeast of the Musley Deposit, an area targeted to test the extension of the Sylvinite Zone into a gap in the previous drilling pattern. All holes intersected two main zones of potash mineralization, sylvinite and kainitite. Hole 34 intersected 3 metres of 38.4% KCl in the Sylvinite Zone and 7.9 metres of 22.9% KCl in the Kainitite Zone. Hole 33 intersected 1.5 metres of 30.1% KCl in the Sylvinite Zone and 6 metres of 23.9% KCl in the Kainitite Zone. Hole 32 intersected a Sylvinite Zone 1.4 metres wide of 29.6% KCl within a zone 3.2 metres thick of sylvinite and carnallite. Hole 32 intersected the Kainitite Zone at a depth of 203.2 metres and returned 3.3 metres of 15.4% KCl.
Holes 32, 33, and 34 are located southeast of the historic Musley Deposit, north of Holes 16 and 8 and east of Hole 31. Potash mineralization was intersected at relatively shallow depths in all holes with sylvinite occurring at depths of 197.1 metres, 467.5 metres and 174.0 metres in Holes 32, 33, and 34 respectively.
Farhad Abasov, President and CEO, commented: "Allana continues to be pleased with the continuity and strength of potash mineralization in the western portion of the property as exhibited by the results of Holes 32, 33, and 34. This area continues to yield high grade potash in the Sylvinite and Kainitite zones, which management believes will allow Allana to upgrade mineral resources from Inferred to Measured and Indicated categories as well as add to the Indicated and Inferred mineral resource categories. In last year's mineral resource update, this area represented a gap in the drilling pattern and no sylvinite mineral resources were calculated for this region. Management believes the presence of sylvinite mineralization in all three holes indicates an extension of the Sylvinite Zone into this area. The relatively shallow and high grade nature of the Sylvinite Zone make this area ideal for solution mining with recovery through solar evaporation.
Holes 32, 33, and 34 are part of an in-fill drilling program in the west designed to test the extension of the potash mineralization associated with the historic Musley Deposit and allow upgrading of the mineral resource estimate to the Measured and Indicated mineral resource categories and to expand the Sylvinite mineral resource in this area. The results for Holes 32, 33, and 34 are presented in the table below. True widths of the potash zones are estimated to be very similar to drilled widths due to the flat-lying nature of the potash horizons. The zones of potash mineralization are outlined in the following table:
Hole 32 was drilled vertically and was collared approximately 500 metres northeast of Hole 31 (see attached figure). Hole 32 is located in the western part of the concession block and east of the historic Musley Deposit suggesting that potash mineralization at Musley continues into the gap between Holes 30 and 16. Previously released Allana drill holes in this region yielded high sylvinite grades (see attached figure) and the results of Hole 32 further support the interpretation of the extension of potash throughout the region.
Hole 33 was drilled vertically and is located approximately 1000 metres east of Hole 32 (see attached figure). The presence of sylvinite and kainitite in this region suggests the continuity of the potash mineralization further east from Hole 32, extending the Musley Deposit to the eastern margin of the Allana license in this area.
Hole 34 was drilled vertically and is approximately 1000 metres north of Hole 16. The strong potash mineralization in this hole, where both sylvinite and kainitite were intersected, indicates continuity of the zones between Holes 16 and 8 in the south and Holes 10 and 30 in the north.
Exploration drilling has shifted to the far eastern part of the property (Hole 46) as part of the mineral resource expansion drill program that management has designed to expand the mineral resources. Samples from Holes 35-45 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada. Technical studies in support of the Feasibility Study are in progress including geotechnical drilling to supply large diameter core for rock mechanic testwork, solar evaporation pond construction, environmental baseline studies and hydrogeological studies. Allana has recently initiated a ground resistivity survey over the western portion of its property to identify aquifers in the alluvial fans. This technique has been successful in the past at outlines water sources in sand and gravel. Mobilization of drilling equipment is ongoing and water well drilling is expected to commence in Q2, 2012. Recent photographs of evaporation pond construction are available to be seen on the company's web-site.