Allana Potash Continues to Intersect Significant Potash With Hole DK-10-08 Returning 31.6 % KCI Over 2 m
11:16 EST Monday, January 24, 2011
TORONTO, ONTARIO--(Marketwire - Jan. 24, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that drill hole DK-10-08, located in the southwestern section of Allana's property, intersected two prominent zones of potash mineralization. Hole DK-10-08 intersected 31.6% KCl over two metres, and 22.1% KCl over 7.5 metres in two distinct intersections at shallow depths beginning at approximately 164 metres. The upper interval occurs within a thicker potash sequence that returned 24.6% KCl over 4.1 metres.
Farhad Abasov, President and CEO, commented: "Allana is very encouraged with our drill results from Hole DK-10-08 which yielded similar results to Hole 06 suggesting good continuity in the southwestern part of the evaporite basin. In addition, management believes the strong potash mineralization in Hole 08 suggests the Musley deposit may extend further south into the basin, adding to the resource potential of the project."
Hole DK-10-08 was collared in the southwestern portion of the Allana property, approximately four kilometres west of drill hole DK-10-04 (see attached figure) and 2.5 km northwest of drill hole DK-10-06. Hole 08 was drilled vertically and may represent an extension of the Musley Deposit south into the basin and into a region that has not been drilled in the past. 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:
FROM (m) TO (m) WIDTH (m)* KCL (%)
164.30 168.40 4.10 24.60
Incl. 165.40 167.40 2.00 31.58
172.70 180.20 7.50 22.08
*Drilled width
Similar to previous holes, evaluation of the core suggests the upper intersection correlates with the Sylvinite Zone as defined by Parsons at the historic Musley Deposit. Similarly, the lower intersection, 6.7 m at 22.04% KCl, is dominated by kainite and appears to correspond to the Kainitite Zone in the Parsons stratigraphy.
Exploration drilling has resumed at the project and hole DK-11-11 has been completed to a depth of 164 metres. Drill rigs are currently working at holes DK-11-12 and 13 to evaluate the continuity of the potash mineralization between holes 08 and 04, and in the Haro concession respectively (see attached figure). Samples from Hole 11 are en route to Saskatoon for analysis and samples from Holes 9 and 10 are in the lab.
AI
