POTASH PLAYS

[Pro-Life]

Quite impressive... Thanks for the link!!!

[Gator44]

ALLRF http://business.financialpost.com/2012/09/19/no-half-measures-allana-potash-doubles-its-ethiopia-land-holdings/

[Pro-Life]

Potash Supply
Mar 25 2011 11:13AM

Cloth-dying and soap-making have employed residue from boiled plant material since ancient times. The plants are reduced to brine and that evaporated until only the useful “potash” remains. In the 19th century the active ingredient in this precipitate was fit into the periodic table as “potassium” with the symbol “K”. Potash has stuck for potassium bearing salts mined in modern times. The salts are processed into fertilizer, now 95% of the K market, which returns potassium to the plant world to increase agricultural yields. Potassium is irreplaceable in this application, so growth of its supply is considered critical to expand global food output. Potash salts are extracted in about a dozen areas, but only a few have large scale. As with other bulk minerals, the boom in potash exploration is keyed to both greater supply diversity and more capacity.

The most important potash basin in Saskatchewan supplies about 1/3 of the market and contains half of the current reserves. Potash Corp of Saskatchewan (POT-T, N) is the region’s and world’s biggest potash miner, with Mosaic Co (MOS-N) and Agrium Inc (AGU-T, N) making up the balance. All of these producers market through a single agency. BHP Billiton (BHP-LSE, N.ADR) indicates it will move ahead on its Janson Lake deposit, acquired by take-over of Anglo Potash in 2008, despite a rebuff of a bid to takeover POT last year; Germany’s K+S KALI is also active there (see below); and a number of other Canadian juniors own projects in the basin. These thick, rich 400 million year old deposits lie below 1000 metres (3000 ft) of cover. Most are mined from high-capital underground operations, though several use wells to circulate solutions that absorb salts.

The second largest active basin is Upper Kama in western Russia whose largest producers, Silvinit (SLV-RTS) and Uralkali (URKA-RTS), are attempting a merger. Fertilizer giant PhosAgro has also expressed an interest in Silvinit. PhosAgro had gained Russian government approval to counter the bid by BHP for POT last year before Canadian governments nixed a take-over. The next most important potash source is the Starobin basin in Belarus being mined by a state owned firm. Russia and Belarus have joint marketing arrangements and together represent another 1/3 of potash output.

Other significant producers include: K+S KALI GmbH (K+S Group; SDF-XETRA) operating a series of German mines and which recently took over Canadian junior Potash One; Intrepid Potash (IPI-N) mining in Utah and New Mexico; Vale SA (VALE3-BOVESPA, VALE-N.ADR) from expanding mines in Brazil; ICL Fertilizers (ICL-Tel Aviv)from mines in the UK and Spain as well as solar evaporate operations in Israel; and Arab Potash (APOT-Amman) with solar evaporate operations in Jordan. These are significant producers with some room for expansion, but none approaches the scale potential of Saskatchewan or Russia/Belarus.

The Israel and Jordon operations extract potassium from Dead Sea brine. The Dead Sea is a present-day equivalent of the now dry Danakil Depression seabed on the Ethiopia-Eretria border where potash deposits were laid down less than two million years ago. Danakil is generating a lot of interest. Shallow potash deposits have been located along 10s of km of the 200 km (120 mile) long Depression, suggesting potential for both low entry costs and significant scale.

In Ethiopia the Indian miner Sainik Coal Mining is considering a move forward with a $1 billion potash development, and BHP Billiton is at an earlier stage of assessing holdings. Smaller companies with established resources include Toronto based juniors Alanna Potash (AAA-TSX.V) and recently listed Ethiopian Potash (FED.TSX.V), both testing deposits first discovered in the 1960s. Chinese funding has begun an upgrade and expansion of Ethiopia’s rail system that could move product to port facilities in Djibouti. On the Eritrean side of the boarder Australian explorer South Boulder Mines (STB-ASX) is in the early stages of outlining a resource, Vancouver’s NGEx Resources (NGQ-TSX.V) from the Lundin group added potash ground to other in-country holdings, and others are showing interest. The basin is close to Eritrean port facilities on the Red Sea. Danakil means “salt lake” and it has supplied the common salt trade for millennia. It may now become important to diversifying the modern potassium salts market.

Potash Deposits and Products

Salts form as evaporation of trapped water increases its brine density. The first of the “evaporites” to drop out are halite (NaCl), the table or common salt used in spicing and preserving food, and gypsum used in construction. To generate potash salts a higher density brine is required. Small deposits are found in a number of regions, but only a few basins have had the right conditions to both form and preserve large potash deposits.

Sylvite, KCl, is the purest potash salt with a 52.5% K content. This is one of the last salts to precipitate out of brine, so it is relatively scarce. Potassium in fertilizer is usually expressed as potassium-oxide, K2O, which is 82% K by weight; sylvite equates to 63.2% K2O. The high sylvite layer in an evaporite sequence, if it exists, is usually a mix of sylvite and halite. The more common carnallite has a K content of 14%, or 17% K2O, but carnallite ore can contain other salts that upgrade its potassium content.

The most common potash product is “muirate of potash”, or MOP (muria is Latin for brine,) which is potassium-chloride and therefore chemically equivalent to sylvite. This is usually what a producer output will reference. Another typical product is potassium-sulfate, K2SO4, or SOP that contains about 52% K2O but gains value as a sulfur source. Salts such as kainite containing sulfur and can be preferentially upgraded to SOP.

The USGS estimate of a global 2010 mine output at about 33 million tons (30 MM tonnes) is K2O equivalent. Most general comments on pricing will be based on this higher grade form used to denote fertilizer content. Potash pricing went from a stable US $150-200/tonne prior to 2007 to over $800/t in 2008 as the biofuel craze gripped markets. Post Credit Crunch pricing slumped to $300 but has recovered to near $400.

Fertilizer pricing is dependent on product form plus the content of other nutrients that may go into various retail sales products. Potash deposits are valued on potassium content net of the costs to get that on to a loading dock in a useable form. In comparing deposits or districts it’s important to note whether reporting uses K2O or KCl equivalent, or some other local notation. As with most bulk mineral commodities valuation is based on contract pricing which can be tracked through news from marketing agencies Canpotex and Belarussian Potash Co who account for over 60% of sales. Spot pricing, which is an important gauge of market sentiment, tends to trade in line with grain prices. Flooding in Australia and low precipitation in China’s grain belt have been underpinning recent gains for both grains and potash.

....................................................

From March, 2011 HARD ROCK ANALYST JOURNAL
David Coffin & Eric Coffin, HRA Advisories

[SPARK]

Drug induced vision!~

[Max Power]

lol...this board was ahead of the curve eh?

[Max Power]

big time...

[SPARK]

POTASH..a market about to make many mucho wealthy~

[SPARK]

Nice one~

[kiwisteve]

Potash Pulls In Bids, Bankers And Bulls

By Sally White
http://www.agriprods.com/nc/agrinews/newsitem/article/potash-pulls-in-bids-bankers-and-bulls/1158.html

Fertilisers were where it was all happening last week, as supplies started to run low and the world’s two largest mining groups announced plans to spend a total of US$4.9 billion on acquisitions in the market.

Vale is to buy a 16 per cent stake in Brazil’s Fertilizantes Fosfatados, depending on completion of its US$3.8 billion deal to buy Bunge’s Brazilian fertiliser assets. BHP agreed to acquire Canada’s Athabasca Potash for C$341 million.

Commenting on the BHP deal Potash president William J. Doyle said: “It’s cheaper to buy existing operations than build new mines.” The deal news sent BHP shares down 3.2 per cent to A$39.40 but Vale gained 0.5 per cent. Bunge says it will use part of the proceeds of its sale to “increase the scale” of it agribusinesses and food operations and “further expand into complementary value chains such as sugar.”

Meanwhile, thrilling the bulls and bankers, Potash Corp of Saskatchewan, the world’s largest fertiliser manufacturer, forecast higher sales and Credit Suisse, Bank of America Merrill Lynch all put out notes forecasting strong price recovery.

Morgan Stanley said demand could rise 50 per cent and prices could advance from 2009’s US$400 to US$450tonne in the coming months. Credit Suisse said the global potash market will probably see a “large recovery” from April when farmers start planting...

[SPARK]

China In Race To Corner Canada’s Potash?
Fri, Oct 23, 2009
Featured, Potash Articles
By Kishori Krishnan Exclusive To Potash Investing News
The global fertilizer industry looks to the world’s biggest potash producer for guidance, but with Potash Corp of Saskatchewan Inc turning up disappointing figures on Thursday, attention has turned to the continuing caution among buyers around the world.

The world’s largest mining company, BHP Billiton Ltd (BHP:AX), which has been a rumoured suitor for months and has been toying with an estimated price of $40-billion, could well turn away to more interesting tidbits, given the current scenario.

BHP had said potash is “seen as an opportunity,” when asked whether the company would buy its way into the fertilizer industry or develop its own properties. Potash currently has a market value of US$ 28 billion.

But National Australia Bank Ltd issued a report suggesting that BHP’s credit rating would likely be downgraded if it bid for the Saskatoon-based company, saying it would be “a big bite” even for a large company such as BHP.

Potash shares had gained almost 15 per cent in the last five days, after Bank of America Merrill Lynch suggested BHP could afford a 30-per-cent premium to current share prices if it bid for the fertilizer giant.

However, with the firm posting an 80 per cent drop in profits, any deal would be tough. All of this coming at a time of great uncertainty for the fertilizer industry.

Earnings slashed

Sales of the TSX market heavyweight Potash Corp fell to US$ 1 billion compared with US$ 3.1 billion in the same period last year. Net income was US$ 248.8 million or 82 cents a share, a drop from $1.2 billion or $3.93 per share in the same period last year.

Potash also slashed its earnings estimates and production this year, reducing the amount of potash it plans to bring to market this year by 5.5 million tonnes. It also said fourth-quarter profit likely would range between 65 cents to 85 cents, compared with the $1.18 analysts expected.

And this was just months after the firm declared an end to the “depression” in potash prices.

Chief executive officer Bill Doyle said the sharpest slump since the collapse of the Soviet Union has made forecasting difficult. From January to June, global exports fell by 72 per cent. Prior to that, the worst ever six-month decrease saw volumes slip 27 per cent.

“Everyone would like to know the date or even the signal that will mark a return to normal markets,” he said. “We thought [a contract settlement with India] would ease the uncertainty, but that has not happened,” Doyle said.

Hunger pangs

With countries such as China desperate to feed its growing population, could the Chinese market bolster demand and put a bottom on prices that have fallen from US$ 1,000 a tonne last year to about US$ 500 a tonne this fall?

What about growing hunger pangs and the fears that China could end up cornering the market?

On Monday, China’s national Xinhua news agency reported that Beijing-based Zhongchuan International Mining Corp signed a deal to explore for potash on a Saskatchewan land parcel with annual capacity of three million tonnes.

According to the Saskatchewan Energy and Resources, the company’s Canadian branch, Canada Jiuyi Mining Investment Ltd, has been conducting drilling and seismic tests on land southeast of Saskatoon, since it received a potash exploration permit from the provincial government in September 2008.

Also in September 2008, a second Chinese company, Taiji Resources Ltd, signed a memorandum of understanding with First Nations group to develop potash resources near Dafoe, Saskatoon, about 160 kilometres east of Saskatoon.

All’s well?

An expert on Canada-China investment relations with the Asia Pacific Foundation of Canada has, however, allayed fears, stating that Chinese investment in Canada’s potash resources is a “win-win” situation for both economies, despite differing local opinions on environmental and social consequences.

“From an economic perspective, it’s obviously a win-win situation because any investment creates more business, more jobs for the local economy,” said Kenny Zhang. “Basically, the Chinese companies are interested in everything,” he added. “They want to explore business opportunities…because they are the only country that has deep pockets now in the recession.”

“There’s this conclusion that Chinese investment is a scary thing, but an investment is an investment, money is money,” he added.

China imports 5 million to 8 million tonnes of potash a year, giving it a key role in the market for the commodity, one of the essential minerals needed for plant growth, alongside nitrogen and phosphate.

China’s huge purchasing power gives it the ability to negotiate aggressively with suppliers, who have already been forced to cut prices due to a global slump in demand.

Energy and Resources Minister Bill Boyd gave his own take. “Any major financial results from Chinese activity in the province’s potash industry is still a long way off. It’s only a “pre-feasibility study”…a very, very preliminary type of a process that they are going through…,” said Boyd, noting that it would “require literally billions of dollars in investment,” to build a new potash mine.

The question doing the rounds is - who has that kind of money?

Profits crimped

Crimping profit margins is all set to test the market discipline of a small circle of producers that have long controlled prices for the essential crop nutrient.

Even though global potash exports fell more than 70 per cent in the first half of 2009, major producers have kept a tight rein on supply, limiting the downward momentum on pricing triggered by a sharp drop in grain prices.

Analysts say producers may start to lose their grip as existing producers expand production and as newcomers and emerging economies like China play a bigger producing role.

“The more capacity that’s out there, regardless of whether it is in the hands of the same players, (the more) the likelihood that people may break (ranks), said Morningstar analyst Ben Johnson.

Buyers have has already started to flex their muscles. Indian buyers recently pushed debt-laden Russian producer Silvinit (SILV.RTS) to cut its price to $460 a tonne from a year-ago contract price of about $625 per tonne.

Incidentally, Silvinit will follow the lead set by Belarussian Potash Co when agreeing on a deal to supply the crop nutrient to China, a source at the company said.

Silvinit will cut potash output by about 30 per cent, although production levels of the fertilizer rebounded to more than 80 per cent of capacity in July and August, thanks to a market-moving deal with India.

The Silvinit deal forced other suppliers to follow suit and brought potash spot prices down to about $500 a tonne, well below the $700 level seen when the Indian contract was signed in July, and sharply off last year’s peak of about $1,000 a tonne.

Yet that price drop has not stopped players like Potash Corp (POT.TO), Mosaic Co (MOS.N) and Uralkali (URKA.MM) from pushing ahead with multi-billion dollar expansion plans.

“From 2011 and beyond, the global supply/demand balance shows a widening potential surplus, accounting for 25 per cent of world supply in 2013,” Patrick Heffer and Michel Prud’homme, of the International Fertilizer Association, said in a recent report.

That will test the discipline of producers, who currently run their mines well below capacity rather than cut prices.

[SPARK]

POTASH HEATING UP GOOD..Chinese companies exploring for potash in Canada
Mon Oct 19, 2009 4:48pm EDT
* Zhongchuan has tested Saskatchewan site for past year
* Mine developers seek overseas investors, partners
* China a top buyer, Canada a key producer of potash (Adds details)
By Rod Nickel
WINNIPEG, Manitoba, Oct 19 (Reuters) - China's Zhongchuan International Mining Corp is exploring for potash in Canada's mineral-rich Saskatchewan province as optimism about long-term demand for the crop nutrient attracts more foreign investment.
The Saskatchewan government granted the Chinese mining firm exploration rights in September 2008, government spokesman Bob Ellis said on Monday.
The company's Canadian subsidiary, Canada Jiuyi, is drilling and conducting seismic tests on a 96 square kilometre (37 square mile) site southeast of the city of Saskatoon, Ellis said. If developed, the site could produce 3 million tonnes of potash annually, the official Xinhua news agency said on Monday.
"It certainly says a lot about what people see as a highly valuable resource and commodity that we have here in Saskatchewan," Ellis said. "The industry is optimistic about its long-term prospects."
Under the terms of its agreement, Zhongchuan has up to four more years to explore for potash, but can also apply for extensions.
The company does not own the land, which has not been mined before.
If Zhongchuan decides it wants to develop the site into a mine, it would need further government approvals.
One other Chinese company, Taiji Resources Ltd, has active exploration rights in Saskatchewan, Ellis said, adding he didn't have details about how much work that company has undertaken.
Major producers Potash Corp of Saskatchewan (POT.TO: Quote, Profile, Research, Stock Buzz), Mosaic Co (MOS.N: Quote, Profile, Research, Stock Buzz) and Agrium Inc (AGU.TO: Quote, Profile, Research, Stock Buzz) are among the active potash miners in Saskatchewan and all are expanding. Australian miner BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz) is in the early stages of planning its own potash mine in the Western Canadian province, which is a major world source of the fertilizer.
Prohibitive mine-building costs have forced a handful of potash exploration companies to look for overseas investors, or strategic players that are interested in partnering in their projects.
Juniors such as Athabasca Potash (API.TO: Quote, Profile, Research, Stock Buzz), Potash One (KCL.TO: Quote, Profile, Research, Stock Buzz) and Western Potash (WPX.V: Quote, Profile, Research, Stock Buzz) have all been reported to be engaged in talks with Chinese and Indian companies that are eager to secure potash supplies due to growing demand for fertilizer in those two big markets. [ID:nN12150545]
Demand for potash is expected to rebound gradually in coming months as economic conditions improve and farmers, who have been holding off expensive fertilizer purchases, resume applications to boost crop yields.
China is the world's largest buyer of potash, an essential mineral needed for plant growth, along with nitrogen and phosphate. It traditionally signs an annual supply agreement with Canpotex, the offshore marketing agency for Saskatchewan's biggest potash producers, but has not yet agreed on terms for this year.
China imported 3.18 million tonnes of mineral and chemical fertilizer, with a total value of $1.637 billion, in the first eight months of this year, according to Chinese customs data. The data did not include a specific figure for potash.
The country used 7.633 million tonnes of potash in 2007, more than 65 percent of which came from imports, the Xinhua agency report said.
Zhongchuan is a mining conglomerate involved in copper, gold and other metals. It is part of Jiuyi Group, an investment holding company based in Beijing.
For a recent package of stories about potash, please click on [ID:nN22340110].
(1=$1.03 Canadian) (Additional reporting by Euan Rocha and Beijing newsroom; editing by Peter Galloway)

[Max Power]

CORRECTED-POTASH-Junior explorers may lure top farming nations
Tue Sep 29, 2009 9:50am EDT
(Corrects company name/ticker to Athabasca Potash from Athabasca Minerals in third last paragraph)

* Small-caps not seen as viable targets for big companies

* Top importing countries expected to look for new supply

By Pav Jordan

TORONTO, Sept 25 (Reuters) - Junior potash producers may find willing partners in China, India and other farming nations, as the majors stay off the takeover trail to develop their own huge reserves.

The smaller companies are sitting on large potash deposits they cannot afford to develop. And if the big producers are not interested, the juniors will need to be inventive to get their mines built, given that the huge cost of developing new projects may actually scare away investors.

"The small guys are having very active dialogue looking for strategic investors, looking for that source of equity to help them get built," said Dan Barclay, head of mergers and acquisitions, Canada, for Bank of Montreal.

"Do I think a bunch of these guys are going to get sold? I do not," he added. "Do I think they are going to go out and find strategic equity to help them move their business plan along? Yes I do."

From the cane fields of Brazil to the great rice fields of India and China, potash is an essential nutrient to improve the resistance of plants to disease and to boost crop quality and yield.

But a cartel-like handful of firms currently controls supply and pricing, leaving importers searching for alternative ways to get the fertilizer they need.

The smaller companies "really need a sugar daddy like me to come along and bail them out," said Bill Doyle, the chief executive of Potash Corp of Saskatchewan (POT.TO: Quote, Profile, Research, Stock Buzz), the world's No. 1 producer. [ID:nN21299092]

"Of course we are not going to, because we have hundreds of years of reserves from our own mines and we are doing our own expansions much cheaper than building greenfields," he said in an interview, referring to building mines from scratch.

Even so, there appears to be some interest in finding alternatives to the big producers.

The Indian Farmers Fertiliser Co-operative Ltd (IFFCO), which relies on imports for its supply, said it was evaluating a few projects.

"We are working on potential joint ventures. Potash is not simple. It is a ... risky venture. We have to evaluate very carefully," U.S. Awasthi, managing director of IFFCO, said in an interview this week.

He said Canada was one option that IFFCO has considered, as well as projects closer to home.

The Canadian small-cap sector includes Athabasca Potash (API.TO: Quote, Profile, Research, Stock Buzz), Potash One Inc (KCL.TO: Quote, Profile, Research, Stock Buzz) and Western Potash Corp (WPX.V: Quote, Profile, Research, Stock Buzz).

While some small producers have faded from the spotlight, these are some of companies that continue to beat their drums, insisting they have deposits that are worth developing.

Vancouver-based Potash One said last week that it submitted a proposal to environmental authorities for its Legacy project in the western Canadian province of Saskatchewan -- a major source of potash -- and said it represents the first new potash production facility in the province in more than 40 years.

http://www.reuters.com/article/marketsNews/idAFN2943997820090929?rpc=44

[SPARK]

We got the Potash bug~

[Max Power]

http://www.potashinvestingnews.com/

[Max Power]

North American potash inventories decline in September
Thu Oct 15, 2009 9:45pm EDT
* North American potash inventories down 54,000 tonnes

* Potash inventories still 142 pct above prior 5-yr average

TORONTO, Oct 15 (Reuters) - Potash Corp of Saskatchewan (POT.TO: Quote, Profile, Research, Stock Buzz) said on Thursday North American potash inventories declined for a third consecutive month, but inventories at the manufacturer level continue to remain well above average.

Potash Corp, the world's largest producer of the crop nutrient, said North American producer inventories in September fell by 54,000 tonnes to just above 3 million tonnes, down from prior-month levels but still 142 percent more than the previous five-year average.

Potash inventories had risen steadily through the first-half of 2009, despite major production cuts, as farmers concerned by exorbitant pricing and hurt by the credit crunch had deferred fertilizer application.

Buyers of the nutrient were also staying out of the market in anticipation of big annual import contracts signed by India and China, which typically set the tone for spot market pricing.

In July, India signed contracts to import the bulk of its annual potash requirements at $460 a tonne, well below last year's contract price of more than $600 and the spot market price of $700 at the time.

The new Indian contract has brought some international buyers back into the market, but many buyers and distributors still remain on the sidelines and are waiting for Chinese importers to finalize their annual contract, as they believe that potash prices could fall further.

In a set of graphical data posted to its website, Potash Corp also indicated that potash spot market pricing was almost flat at just under $500 per tonne in September. (Reporting by Euan Rocha)

[Max Power]

Will China Spur a 2010 Potash Rally?

By the tickerspy.com Staff
On 11:32 am EDT, Friday October 16, 2009
Reports suggest that an 860,000-ton potash deal is about to be inked.

According to Reuters, Belarusian Potash Company (BPC) is in the final stages of a Chinese supply deal. Bloomberg reports the move could signal a return in fertilizer demand, according to comments from analysts at RBC. The pricing of the 860,000-ton order has not been disclosed, but, in a separate deal, 300,000 tons will be shipped to Vietnam for $500/ton next year.

Potash-tied components of the Agricultural Chemical and Fertilizer Stocks Index are moving higher on the news, while other fertilizer stocks head south. As of this writing, all but one of the sector's stocks are positive for the week.

Potash of Saskatchewan (NYSE: POT - News), the world's biggest fertilizer producer, according to Bloomberg, is also benefiting from news that Japan's Flour Millers Association said the country may boost its wheat imports after soggy weather cut production by as much as a third.

Meanwhile, Mosaic (NYSE: MOS - News), Compass Minerals International (NYSE: CMP - News) and Intrepid Potash (NYSE: IPI - News) are all trading higher by over 1%. All three have varying degrees of exposure to the potash market.

Agrium's (NYSE: AGU - News) potash exposure may have helped carry it out of the red today. If its intraday trend continues it will likely close in positive territory.

China Green Agriculture (NYSE: CGA - News) continued its selloff Friday morning after dropping sharply into Thursday's close. The stock remains the Index's top performing component over the last week, holding onto an 8% gain.

As of this writing, the Agricultural Chemical and Fertilizer Stocks Index is dead even with the S&P 500 over the last month. It's 3.3% five-day run is enough to rank it among the top-25 tickerspy Indexes for the period.


http://finance.yahoo.com/news/Will-China-Spur-a-2010-Potash-indie-808618785.html/print;_ylt=AskUhsq2B_.KFBkatvi4Ctbvba9_;_ylu=X3oDMTBwNjZiaWw5BHBvcwMxBHNlYwN0b29scwRzbGsDcHJpbnQ-?x=0

[Max Power]

OVERVIEW
Allana controls potash concessions covering 150 km2 in the Danakil Depression. The property has an Inferred Mineral Resource of 105,200,000 tonnes with a composite grade of 20.8 % KCl. The unique environment at Dallol suggests low CAPEX and OPEX may be achievable using solution mining, solar evaporation and geothermal energy.

WHAT WE LIKE ABOUT ALLANA RESOURCES
Inferred mineral resource 105,200,000 tonnes @ composite grade of 20.8 % KCl
Shallow depth (50-100 m) to potash
Solar evaporation and use of geothermal energy possible
150 km² concession in Ethiopia, covering extensive evaporite basin
Strategically located, only 100 km to Red Sea
Significant previous exploration (nearly 300 holes in the Danakil Depression)
One of the largest known evaporite basins in the world with known potash mineralization
Amenable to solution mining and open pit
Potential to become the lowest cost producer in the world
CHIEF PROPERTY
ETHIOPIAN POTASH PROJECT


Allana Resources has three potash concessions (Dallol Potash Project) located in Ethiopia’s northeastern Danakil Depression totaling about 150 square kilometers. The Dallol Potash Project area is approximately 100 km from the Red Sea coast. The potash mineralization in the Danakil Depression is well known with small-scale potash mining carried out intermittently from the early 1900s.



Allana’s project has been previously explored. The US-based Ralph M. Parsons company drilled nearly 300 drill holes from 1958-1967 and even sank a shaft to conduct underground mining.

Allana has completed a NI 43-101 compliant technical report for the three concessions highlighting several unique advantages of this project:
An Inferred Mineral Resource of 105,200,000 tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8% KCl
Near-surface (shallow-depth) potash mineralization (within 50 meters of surface)
Potential for solution or open-pit potash mining
16 drill holes immediately on Allana’s property but 90 % of project unexplored
2 holes intersected 45 meters of potash mineralization at a depth of 680 meters – demonstrate significant potential to expand potash resource
Unique environment that may provide for low-cost production utilizing solar evaporation and geothermal power
MOP (muriate of potash) and SOP (sulphate of potash) production is feasible.



Potash occurs as both sylvite (KCl) and as kainite (KMg(SO4)Cl*2.75H2O). The sylvinite member varies in width up to 11 metres (average approx. 3 metres) and grades up to 35 % KCl. The kainitite horizon is up to 13 metres (average approx. 6 metres) and averages 62 % kainite.

Allana has embarked on a comprehensive initial exploration phase during the first quarter of 2009. This programme will include data compilation, geological mapping, structural mapping, satellite interpretation. During the remainder of 2009 Allana plans 1500 metres of diamond drilling to confirm previous drill results, upgrade portions of the inferred resource to “indicated” and to provide access for down hole seismic studies. In addition to the diamond drilling, downhole seismic survey will provide a signature of the potash horizon and lead to a 2D seismic survey over the basin to delineate the extent of the potash and identify additional drill targets.



MANAGEMENT
Farhad Abasov, MBA - President, CEO & Director. Over 15 years of business management experience; Most recently served as Senior Vice President at Potash One and Vice President, Portfolio Management and Vertical Integration for Uranium One. Former member of Energy Metals management team (Energy Metals was sold to Uranium One for $1.8 Billion in 2007).
Peter MacLean, P.Geo., PhD - Senior Vice President, Exploration. Over 20 years experience in the mining & exploration industry with junior and senior mining companies including Monarch Resources, Aur Resources and Newmont Mining.
Nejib Abba Biya - Senior Vice President, Business Development. Over 20 years of experience conducting business in Ethiopia, excellent working relations with the federal and regional governments.
Deborah Battiston - Chief Financial Officer. C.G.A. with over 20 years of accounting and financial management experience.
Pat Gleeson - J.D., Corporate Secretary. Corporate Securities Lawyer with vast experience in the mining sector.






http://www.resourceinvestingnews.com/830-developing-world-class-potash-project-in-ethiopia.html

[Max Power]

Passport Metals Inc.: Arizona Potash Property Acquisition, Lease with Option to Purchase

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2009) -

Passport Metals Inc. (TSX VENTURE:PPI) has signed a 4 year lease with an option to purchase on the Twin Butte Ranch, in the potash bearing Holbrook Basin of east-central Arizona. The Twin Butte Ranch comprises some 28,526 acres (11,544 hectares) of private deeded land with 76.7% or approximately 21,894 acres (8,860 hectares) overlying the potash horizons within the Holbrook Basin.

Under the terms of the agreement Passport can earn a 100% undivided interest in the deeded land and sub-surface minerals rights by making lease payments totaling US$500,000 over the next four years and, upon exercising its option to purchase, by paying US$20,000,000 for the entire Twin Butte Ranch including all sub-surface mineral rights excepting those pertaining to oil and gas, petrified wood and geothermal resources. There are no royalties associated with the sub-surface mineral rights.

The central 1,500 square kilometres or 155,000 hectares of the Holbrook Basin was found to be underlain by potash as a result of exploration in the 1960's and 1970's by Arkla Exploration Company and Duval Corporation among others. Steven L. Rauzi of the Arizona Geological Survey reviewed the data and published an Open File Report in 2008 which showed the potash horizons ranged from 5 to in excess of 30 feet throughout the Basin. He further estimated a geologic target for the entire Holbrook Basin of 682 million tonnes at 6% K2O to 2.58 billion tonnes at 20% K2O.

According to the isopach map with Rauzi's report, the potash horizon underlying the Twin Butte Ranch property appears to thicken from 10 feet to in excess of 20 feet from northwest to southeast across the ranch property.

Nine of the Arkla Exploration Company holes lie within the current boundaries of the Twin Butte Ranch property. Two of the holes were outside of the limits of the potash. Six of the remaining seven holes were concentrated in the southwest area of the ranch including the four with assay results, which were 7.05% K2O to 14.50% K2O over 4 feet (1.2 metres). Arkla did not assay all of the holes as they relied on gamma ray logs to determine the presence of potassium, and hence potash in the drill holes. The gamma ray logs show the potash horizon ranges in width from 4 to 10 feet (1.2 to 3.0 metres). The depth to the top of the potash horizon ranges from 990 to 1440 feet (301.8 to 438.9 metres).

The location of these seven holes, along with the remaining Arkla drill holes and the four holes completed by Passport earlier this year within the entire Passport Holbrook Basin holdings is shown in the following map. The map can also be found on the Company's website at http://www.passportmetals.net/Holbrook%20Basin%20Holdings%2010-Oct-2009.jpg.

The Arkla drilling tested only 6 of the 36 sections of land comprising the Twin Butte Ranch property, concentrating largely in the southwest part of the ranch. Passport plans an aggressive drill program initially focused on the southeast portion of the ranch to test the thickest areas of potash.

The Twin Butte Lease brings Passport's total land holdings within the Holbrook Basin to almost 33,000 acres (13,350 hectares). President Richard Hunter is very pleased with the agreement to lease and purchase the Twin Butte Ranch, saying: "Passport has more than tripled its landholdings in the Holbrook Basin by adding some 36 sections of private lands to the 18 sections of State lands it already had. We are now one of the largest landholders, if not the largest landholder, drilling for potash in the Holbrook Basin."

Based on Rauzi's geological target estimate of the entire Holbrook Basin, the 13,350 hectares now under option or lease to Passport could host 8.61% of the total geological target of the 155,000 hectares or 58.7 million tonnes at 6% K2O to 222.2 million tonnes at 20% K2O.

There are no current 43-101 mineral reserves or mineral resources on the Passport Metals Inc. Holbrook Basin Potash Project holdings. The reader is cautioned that the potential quantity and grade indicated above is conceptual in nature. It has been provided only for illustration purposes. At this time, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the discovery of these mineral resources.

Passport will immediately apply to the Arizona Oil and Gas Commission for permits to commence drilling on the Twin Butte Ranch property. Since Passport will be exploring on private land, the permitting process is considerably expedited in comparison to state or federal lands. All sites will be reclaimed to the standard required by the Arizona Land Commission for State Exploration Permits.

Due to relatively shallow depths to the top of the potash layers (300-450 metres), the potash deposits of the Holbrook Basin are considered favorable for either conventional underground or in-situ solution mining. Previous drilling has indicated that faulting and layer disruption from diapir effects common to salt deposits are minimal, thereby allowing for increased ease and decreased costs of all future exploration and development activities.

R. Tim Henneberry, P.Geo., a Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

On behalf of the Board of Directors

PASSPORT METALS INC.

Laara Shaffer, Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[Max Power]

Article in RESOURCE WORLD MAGAZINE on ALLANA

http://www.allanaresources.com/docs//june122009pdf.pdf

Allana Resources developing Ethiopian potash resources
Farhad Abasov, President/CEO, reports that Allana Resources Inc. [AAA-TSXV] has completed its initial reconnaissance exploration program on its 150 square kilometre Ethiopian potash project located in the Danakil Depression region about 100 kilometres from the Red Sea coast. The project is accessible through roads leading from north and south. The southern road is being completely rebuilt by the Ethiopian government. By the end of the year there will be a new paved highway leading to the property. The government is also planning a railway system for the entire country, including this region. Allana holds an option to earn 100% interests in three potash concessions, collectively called the Dallol Potash Project.
The concessions have seen past potash mining which was carried out intermittently since the early 1900s. Today, other mining companies working in the basin include BHP Billiton and India-based Sainik Coal Mining. Allana’s concessions cover part of the Musley potash deposit on the edge of the 1,000 square kilometre evaporate basin. Most of the world’s reserves of potassium were formed when ancient inland oceans evaporated and the potassium salts crystallized into beds of potash ore.
The recent exploration work focused on structural mapping of the salt domes in the centre of the basin, structural mapping of the west side of the Danakil Graben and sampling of geothermal hot springs to determine the chemistry of the brines.
“While more work is required, we have been encouraged that all studies to date indicate continuity of the potash horizon,” said Abasov. “It is also encouraging that the brine chemistry indicates that dissolution of the potash horizon by hot brines is not a major factor.” Abasov says that the project may prove to be one of the lowest cost potash producers in the world due to the lower capex and opex requirements. The project is amenable to solution mining and due to climatic conditions in the region, solar evaporation ponds could be utilized to reduce both capital expenditures and especially operating costs. Due to these advantages, global industrial players have recently expressed their interest in Allana’s potash property in Ethiopia.
The northwest part of the property, which constitutes about 10% of the entire land position, has over 100 million tonnes of NI 43-101 compliant inferred resource. The company has planned 1,500 metres of diamond drilling, downhole seismic studies and 2D seismic surface studies for 2009. The drill program is designed to confirm and expand the NI 43-101 resource. Allana also plans to upgrade inferred resources to the measured and indicated category through the drill program.
Independent consultant, ERCOSPLAN Ingenieugesellschaft Geotechnik und Bergbau mbH, stated in its report on the property that a reasonable target would be to increase the inferred resources by at least 10 times.
Abasov said that if all is on track and financing is secured, then commercial production can be achieved within three or four years. He pointed out that depending on how and with whom the asset is developed, the primary customers may be either China, Brazil or possibly some other country or region.
Allana also holds a 100% interest in over 154,000 hectares in the Potash-rich Nequen province of Argentina.

[Max Power]

another tidbit on allana people may not be aware of... may be a provider to South America in the future.
Has a 100% interest in 154,000+ ha in the Nequen province of Argentina, a portion of which is adjacent to Vale’s Rio Colorado potash project. We believe management is more focused on the Company’s potash exploration prospects in Ethiopia.

[Max Power]

at 500 dollars a ton that is 52 BILLION dollars and they are targeting a resource 4 or 5 times that? WOW is right! unbelievable opportunity... and they are going to mine this sucker for only 60 bucks a ton... huge profits

[SPARK]

WOW Abasov told BNW News Wire that the Chinese are most interested in the ‘big picture’ potential of his company’s project, which is located in a potash basin that has similar geology to and is twice the size as the prolific Urals potash basin in Russia.

“Though we have 105,200,000 tonnes of potash already outlined in the inferred category, we’re ultimately targeting a potential resource up to four to five times this size, based on an independent technical study that is compliant with Canadian regulatory requirements,” he says.

“This would be world-class. And we’re confident that a future mine in this geological environment could be one of the lowest cost producers in the world.”

[Max Power]

DD on ALLANA RESOURCES (AAA.V/ALLRF)

Spoke to the CEO this past week.

Private Placement was restricted for 4 months. That was up on Sept 21 so he believes we have seen most of the selling from that completed.

ALLRF- He is going to look into including the symbol is PR's. He also said they will definitely revisit the issue of uplisting their american symbol. (ala cvv.v cvvuf)


The reason for the renegotiation of 'enhanced terms' is that they received more interest from other Chinese companies. (at least 2) The enhanced terms will be a drop from 70% ownership or that the Chinese will be responsible for 100% of all costs for the mine startup.

31st of October is still the day they are pushing for, although this may be delayed due to the additional companies in the picture.

I asked him about the wellington management report that pegged them at 50 cents in the short term and 2.50 over the next 3-5 years and he stated that it was very conservative.

I asked him about a buy out. He stated they are way too early in the process and wouldn't get fair value at this point.

The CEO feels that ALLANA will be the lowest cost and fasted to production in the world.

1/2 the start up cost. 700-800 million for a one million ton setup vs 1.5 billion in Canada.

1/2 the production cost. 60 dollars per ton vs 120 dollars a ton.

and with the additional interest from chinese firms the position that ALLANA has will only improve.

there you have it

[Max Power]

Posted by: RIGATONI Date: Friday, September 18, 2009 11:30:50 AM
In reply to: None Post # of 127840

~ALLRF .22 DD...

~ALLRF/ Pink
~AAA/ TSX

~TSX fact sheet...http://www.allanaresources.com/factsheet.asp

I took 20k starter yesterday, will be adding more...


Allana's Chinese Partner Successfully Completes Due Diligence and Receives Government Approval
Tue Sep 15, 12:25 PM

http://ca.news.finance.yahoo.com/s/15092009/28/link-f-ccnmatthews-allana-s-chinese-partner-successfully-completes-due-diligence.html

O/S 80.52 m


http://www.allanaresources.com/

http://www.allanaresources.com/docs/AAASept2009.pdf

http://www.ubikaresearch.com/report/Allana-Resources.aspx

Although over 150 nations import potash, only a dozen or so actually produce it

In recent months, plenty of headlines have been garnered by several intrepid and well-financed potash exploration juniors that are vying to muscle-in on Saskatchewan’s lucrative potash mining industry. The fact that uber-financier Robert Friedland is now the chairman of one of these mining juniors adds further sizzle to the emerging Prairie Potash Rush.

However, a couple of other potash explorers are also making impressive headway, but in more exotic locations. One of them is Toronto-based Allana Resources (TSX: V.AAA, Stock Forum), which is hard at work with the development of a potash deposit in Ethiopia. It already has an inferred resource calculation of 105.2 million tonnes of potash, averaging an impressive grade of 20.8%, that has been outlined by way of past drill results.

The other is MagIndustries Corp. (TSX: V.MAA, Stock Forum) which is in the early stages of developing a potash project in the Republic of Congo (ROC). MagIndustries’ early-stage efforts to develop rich potash supplies in Central Africa has already attracted the attention of the world’s fastest-emerging industrial nation, China. The company announced plans just last month that it was in preliminary negotiations with an unnamed Chinese multinational that may buy a large share position with a current valuation of up to Cdn. $280 million.

This impressive endorsement of MagIndustries’ flagship project acutely illustrates how very few undeveloped potash fields are dotted around the world. Indeed, even though over 150 nations import potash, only a dozen or so actually produce this indispensible agricultural nutrient (of which Canada, Russia and Belarus account for about 80% of global output).

Hence, government-owned Chinese companies with large treasuries are anxious to secure enough minerals to sustain their country's remarkable economic growth. So much so that they are willing to invest billions in ever-volatile, war-ravaged regions such as central Africa. ROC should not be confused with its much larger neighbor, Democratic Republic of Congo, which garners all the tragic headlines for its protracted humanitarian crisis.

Indeed, the world’s largest consumer of mineral resources is fast becoming a key source of mining capital for Canadian companies – large and small. This reality was underscored earlier this month when state-owned China Investment Corp. purchased a 17.2% equity stake in Vancouver-based Teck Resources – a diversified global mining powerhouse.

Such developments bode especially well for Allana Resources. It announced just this week its own preliminary joint venture agreement with a major state-run Chinese mining company to build a potash mine on Allana’s property in the potash-rich Danakil Evaporate Basin. The Chinese have also agreed to buy up to a 19.99% share position in Allana, which will infuse as much as Cdn. $4.5 million into the company’s treasury.
This is a milestone development that will put Allana “on the map,” according to one Toronto-based mining analyst who spoke to BNW News Wire on condition that his name is not used as he is not an official spokesperson for his investment bank.

“If the deal goes ahead, it will offer Allana considerable leverage concerning their efforts to expand and commercialize this deposit. And it also raises Allana’s profile in the investment industry,” he adds.

Much of Ethiopia’s appeal as a prospective future supplier of potash stems from its status as a politically stable developing economy with a democratic government. In recent years, Ethiopia has also implemented investor-friendly legislation, including legal safeguards for foreign mining companies, such as constitutional protection from expropriation.

Farhad Abasov, the president and CEO of Allana, says the Chinese are willing to bankroll 70% of the cost of the mine development project in return for the right to earn a comparable interest. And, though potash mines ordinarily have extremely high start-up costs (typically starting at the Cdn. $3 billion mark), Allana’s suitor has very deep pockets.

“Our future partner is one of China’s largest government–owned exploration and development organizations with over 10,000 employees and dozens of projects throughout China and a number of foreign countries, including Ethiopia,” he said in a July 20 company news release.
“We view this joint venture as a key strategic step in developing long-term partnerships with China-based mining and fertilizer organizations.”

Abasov told BNW News Wire that the Chinese are most interested in the ‘big picture’ potential of his company’s project, which is located in a potash basin that has similar geology to and is twice the size as the prolific Urals potash basin in Russia.

“Though we have 105,200,000 tonnes of potash already outlined in the inferred category, we’re ultimately targeting a potential resource up to four to five times this size, based on an independent technical study that is compliant with Canadian regulatory requirements,” he says.

“This would be world-class. And we’re confident that a future mine in this geological environment could be one of the lowest cost producers in the world.”

This project’s compelling economic dynamics are largely due to the fact that it is amenable to low-cost solution extraction (involving the flooding of drill holes with hot water to dissolve the potash for extraction), according to Vikas Ranjan, managing director of the Toronto-based investment research firm, Ubika Research.

“Solution extraction mines also involve significantly shorter developmental timelines than conventional brownfield potash mines (which can take 5-7 years to build), and this offers Allana another major competitive advantage,” he adds.







Your own dd and buying decisions a must!

~Rig

[SPARK]

Junior potash explorers may lure top farming nations

25/09/09

By Pav Jordan

http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20090925&archive=roc&slug=2009-09-25T192930Z_01_TRE58O5QB_RTROPTT_0_CBUSINESS-US-POTASH-DEALS-JUNIORS

TORONTO (Reuters) - Junior potash producers may find willing partners in China, India and other farming nations, as the majors stay off the takeover trail to develop their own huge reserves.

The smaller companies are sitting on large potash deposits they cannot afford to develop. And if the big producers are not interested, the juniors will need to be inventive to get their mines built, given that the huge cost of developing new projects may actually scare away investors.

"The small guys are having very active dialogue looking for strategic investors, looking for that source of equity to help them get built," said Dan Barclay, head of mergers and acquisitions, Canada, for Bank of Montreal.

"Do I think a bunch of these guys are going to get sold? I do not," he added. "Do I think they are going to go out and find strategic equity to help them move their business plan along? Yes I do."

From the cane fields of Brazil to the great rice fields of India and China, potash is an essential nutrient to improve the resistance of plants to disease and to boost crop quality and yield.

But a cartel-like handful of firms currently controls supply and pricing, leaving importers searching for alternative ways to get the fertilizer they need.

The smaller companies "really need a sugar daddy like me to come along and bail them out," said Bill Doyle, the chief executive of Potash Corp of Saskatchewan , the world's No. 1 producer.

"Of course we are not going to, because we have hundreds of years of reserves from our own mines and we are doing our own expansions much cheaper than building greenfields," he said in an interview, referring to building mines from scratch.

Even so, there appears to be some interest in finding alternatives to the big producers.

The Indian Farmers Fertiliser Co-operative Ltd (IFFCO), which relies on imports for its supply, said it was evaluating a few projects.

"We are working on potential joint ventures. Potash is not simple. It is a ... risky venture. We have to evaluate very carefully," U.S. Awasthi, managing director of IFFCO, said in an interview this week.

He said Canada was one option that IFFCO has considered, as well as projects closer to home.

[Max Power]

speaking of monsters, does your ex know you are using her pic in your siggy?

[SPARK]

ALLRF..gonna be HUGE MONSTER~

[Max Power]

Posted by: RIGATONI Date: Friday, September 18, 2009 11:30:50 AM
In reply to: None Post # of 127840

~ALLRF .22 DD...

~ALLRF/ Pink
~AAA/ TSX

~TSX fact sheet...http://www.allanaresources.com/factsheet.asp

I took 20k starter yesterday, will be adding more...


Allana's Chinese Partner Successfully Completes Due Diligence and Receives Government Approval
Tue Sep 15, 12:25 PM

http://ca.news.finance.yahoo.com/s/15092009/28/link-f-ccnmatthews-allana-s-chinese-partner-successfully-completes-due-diligence.html

O/S 80.52 m


http://www.allanaresources.com/

http://www.allanaresources.com/docs/AAASept2009.pdf

http://www.ubikaresearch.com/report/Allana-Resources.aspx

Although over 150 nations import potash, only a dozen or so actually produce it

In recent months, plenty of headlines have been garnered by several intrepid and well-financed potash exploration juniors that are vying to muscle-in on Saskatchewan’s lucrative potash mining industry. The fact that uber-financier Robert Friedland is now the chairman of one of these mining juniors adds further sizzle to the emerging Prairie Potash Rush.

However, a couple of other potash explorers are also making impressive headway, but in more exotic locations. One of them is Toronto-based Allana Resources (TSX: V.AAA, Stock Forum), which is hard at work with the development of a potash deposit in Ethiopia. It already has an inferred resource calculation of 105.2 million tonnes of potash, averaging an impressive grade of 20.8%, that has been outlined by way of past drill results.

The other is MagIndustries Corp. (TSX: V.MAA, Stock Forum) which is in the early stages of developing a potash project in the Republic of Congo (ROC). MagIndustries’ early-stage efforts to develop rich potash supplies in Central Africa has already attracted the attention of the world’s fastest-emerging industrial nation, China. The company announced plans just last month that it was in preliminary negotiations with an unnamed Chinese multinational that may buy a large share position with a current valuation of up to Cdn. $280 million.

This impressive endorsement of MagIndustries’ flagship project acutely illustrates how very few undeveloped potash fields are dotted around the world. Indeed, even though over 150 nations import potash, only a dozen or so actually produce this indispensible agricultural nutrient (of which Canada, Russia and Belarus account for about 80% of global output).

Hence, government-owned Chinese companies with large treasuries are anxious to secure enough minerals to sustain their country's remarkable economic growth. So much so that they are willing to invest billions in ever-volatile, war-ravaged regions such as central Africa. ROC should not be confused with its much larger neighbor, Democratic Republic of Congo, which garners all the tragic headlines for its protracted humanitarian crisis.

Indeed, the world’s largest consumer of mineral resources is fast becoming a key source of mining capital for Canadian companies – large and small. This reality was underscored earlier this month when state-owned China Investment Corp. purchased a 17.2% equity stake in Vancouver-based Teck Resources – a diversified global mining powerhouse.

Such developments bode especially well for Allana Resources. It announced just this week its own preliminary joint venture agreement with a major state-run Chinese mining company to build a potash mine on Allana’s property in the potash-rich Danakil Evaporate Basin. The Chinese have also agreed to buy up to a 19.99% share position in Allana, which will infuse as much as Cdn. $4.5 million into the company’s treasury.
This is a milestone development that will put Allana “on the map,” according to one Toronto-based mining analyst who spoke to BNW News Wire on condition that his name is not used as he is not an official spokesperson for his investment bank.

“If the deal goes ahead, it will offer Allana considerable leverage concerning their efforts to expand and commercialize this deposit. And it also raises Allana’s profile in the investment industry,” he adds.

Much of Ethiopia’s appeal as a prospective future supplier of potash stems from its status as a politically stable developing economy with a democratic government. In recent years, Ethiopia has also implemented investor-friendly legislation, including legal safeguards for foreign mining companies, such as constitutional protection from expropriation.

Farhad Abasov, the president and CEO of Allana, says the Chinese are willing to bankroll 70% of the cost of the mine development project in return for the right to earn a comparable interest. And, though potash mines ordinarily have extremely high start-up costs (typically starting at the Cdn. $3 billion mark), Allana’s suitor has very deep pockets.

“Our future partner is one of China’s largest government–owned exploration and development organizations with over 10,000 employees and dozens of projects throughout China and a number of foreign countries, including Ethiopia,” he said in a July 20 company news release.
“We view this joint venture as a key strategic step in developing long-term partnerships with China-based mining and fertilizer organizations.”

Abasov told BNW News Wire that the Chinese are most interested in the ‘big picture’ potential of his company’s project, which is located in a potash basin that has similar geology to and is twice the size as the prolific Urals potash basin in Russia.

“Though we have 105,200,000 tonnes of potash already outlined in the inferred category, we’re ultimately targeting a potential resource up to four to five times this size, based on an independent technical study that is compliant with Canadian regulatory requirements,” he says.

“This would be world-class. And we’re confident that a future mine in this geological environment could be one of the lowest cost producers in the world.”

This project’s compelling economic dynamics are largely due to the fact that it is amenable to low-cost solution extraction (involving the flooding of drill holes with hot water to dissolve the potash for extraction), according to Vikas Ranjan, managing director of the Toronto-based investment research firm, Ubika Research.

“Solution extraction mines also involve significantly shorter developmental timelines than conventional brownfield potash mines (which can take 5-7 years to build), and this offers Allana another major competitive advantage,” he adds.

~Chart...





Your own dd and buying decisions a must!

~Rig

[Max Power]

Talked to PPIMF today... Highlights include:

-All drilling is completed... expect results soon

-Unrelated news coming sooner than that...don't know what the news will be regarding, just something to look forward to.

-Multiple updates of progress in the next 30-60 days

-Ni43-101 report is on the horizon

[Max Power]

nice one! potash is going to be huge (as it has been)

[SPARK]

I will add another little potash play sometime this week~

[SPARK]

Lotsa buzz on this Potash play..still dirt cheap
PPIMF/tsx:ppi


http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=27384147&l=0&r=0&s=PPI&t=LIST
big things happeneing
news fri/monday. they have sewn up every piece of good land there is in the basin. they know what they got and its a mother load of potash.

all we need is time....the results will send this to the moon and beyond.this is the time to buy, not after the fact.IMO

[SPARK]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40778003

[Max Power]

Passport Metals Inc.: Holbrook Drilling Results

Press Release
Source: Passport Metals Inc.
On Tuesday August 4, 2009, 9:00 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 08/04/09) - Passport Metals Inc. (TSX-V:PPI - News) has received the assay results from the first two holes of the summer 2009 drilling program at the Holbrook Basin Potash Project. PP DDH 01-09 returned a value of 14.64% K2O from 895 feet to 899.5 feet (272.79 to 274.17 metres), which included a value of 18.75% K2O from 895.5 feet to 898.5 feet (272.95 to 273.86 metres). PP DDH 02-09 returned a value of 11.6% K2O from 992 feet to 996 feet (302.36 to 303.58 metres), which included a value of 15.98% K2O from 992 feet to 994.5 feet (302.36 to 303.12 metres). The main interval in each of the holes shows relatively low magnesium content, suggesting the potash mineral is likely sylvinite as opposed to carnallite. The main interval in each of the holes also shows relatively low total insolubles suggesting minimal clay content.

Complete details for the potash intervals for PP DDH 01-09 and PP DDH 02-09 is as follows:

�

----------------------------------------------------------------------------
Hole Number Feet from Feet to % K2 O % MgO % Insolubles
----------------------------------------------------------------------------
PP DDH 01-09 895.0 895.5 7.68 0.01 0.03
----------------------------------------------------------------------------
PP DDH 01-09 895.5 896.0 33.50 0.02 0.09
----------------------------------------------------------------------------
PP DDH 01-09 896.0 896.5 20.20 0.05 0.16
----------------------------------------------------------------------------
PP DDH 01-09 896.5 897.0 7.32 0.26 0.07
----------------------------------------------------------------------------
PP DDH 01-09 897.0 897.5 18.75 1.36 0.07
----------------------------------------------------------------------------
PP DDH 01-09 897.5 898.0 16.40 1.64 0.09
----------------------------------------------------------------------------
PP DDH 01-09 898.0 898.5 16.35 0.58 0.07
----------------------------------------------------------------------------
PP DDH 01-09 898.5 899.0 1.74 0.07 0.07
----------------------------------------------------------------------------
PP DDH 01-09 899.0 899.5 9.78 0.41 0.10
----------------------------------------------------------------------------

----------------------------------------------------------------------------
PP DDH 02-09 992.0 992.5 7.64 0.11 0.19
----------------------------------------------------------------------------
PP DDH 02-09 992.5 993.0 10.50 0.03 0.06
----------------------------------------------------------------------------
PP DDH 02-09 993.0 993.5 26.50 0.02 0.04
----------------------------------------------------------------------------
PP DDH 02-09 993.5 994.0 27.20 0.03 0.05
----------------------------------------------------------------------------
PP DDH 02-09 994.0 994.5 8.07 0.05 0.04
----------------------------------------------------------------------------
PP DDH 02-09 994.5 995.0 5.98 0.06 0.06
----------------------------------------------------------------------------
PP DDH 02-09 995.0 995.5 2.13 0.09 0.13
----------------------------------------------------------------------------
PP DDH 02-09 995.5 996.0 4.86 0.08 0.05
----------------------------------------------------------------------------

Passport management is very encouraged with the assay results as they confirm both the presence of potash within the evaporite sequence in the Holbrook Basin and confirm the grades obtained by Arkla Exploration Company during the historic 1960's drill programs.

The initial assay results strongly suggest the objective of this phase of the Holbrook Basin exploration program, correlating the historic well data with modern coring and down hole geophysical surveying to verify the historical data and allow Passport to combine the historical data with the data from the 2009 programs to define a NI43-101 potash mineral resource for Passport's Holbrook Basin holdings, is on the way to being met.

Passport is also pleased to announce completion of the third and fourth holes, PP DDH 03-09 and PP DDH 04-09, at its Holbrook Basin potash project. These holes continued the twinning program of the previous holes drilled in the 1960's. Passport has begun the reclamation process on the sites of holes 1 through 4 and has initiated the permitting process for the next series of holes. The Arizona Land Commission has commenced issuing permits to other companies exploring for potash in the Holbrook Basin, so Passport expects to receive the permits for the next phase of drilling in 60 to 90 days.

PP DDH 03-09 was rotary drilled to a depth of 829 feet (252.7 metres) and cored from that point through the complete potash horizons to a final depth of 1040 feet (317.0 metres). PP DDH 04-09 was rotary drilled to a depth of 849 feet (258.8 metres) and cored from that point through the complete potash horizons to a final depth of 1100 feet (335.3 metres). Initial geophysical down hole testing by electrical gamma rays (an industry standard) indicated the presence of potash in both PP DDH 03-09 and PP DDH 04-09. The entire core horizon has been sealed in plastic to prevent desiccation and the entire potassium rich section as indicated by the gamma ray survey has been shipped to ALS Chemex Laboratory in Reno, Nevada for each of the two holes.

All sample processing is being handled by ALS Chemex in Reno, Nevada. The analyses are being completed at the ALS Chemex Laboratory in North Vancouver, British Columbia. ALS Chemex is an internationally renowned analytical laboratory with an ISO 9001:2000 accreditation. QA/QC protocols consisting of standards and blanks were inserted into the sample stream by ALS Chemex. The drilling program was supervised by Mr. Clive Bailey, CPG.

R. Tim Henneberry, P.Geo., a Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

The Company also wishes to announce that it has granted 773,000 incentive stock options to directors, employees and consultants at a price of $0.18 for a 5 year term.

Investors are invited to visit the Passport Metals IR Hub at http://agoracom.com/ir/PassportMetals where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to [e-mail] where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

On behalf of the Board of Directors

PASSPORT METALS INC.

Laara Shaffer, Director



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact:



Contacts:
Passport Metals Inc.
Laara Shaffer
Director
[phone]
[phone] (FAX)
www.passportmetals.net

[SPARK]

NI 43-101 TECHNICAL REPORT
HOLBROOK BASIN POTASH PROJECT
http://www.passportmetals.net/upload/Holbrook%2043-101%2027-Jan-2009.pdf