Allana Potash fka AAA

[CdnGuy]

News Out - Hole 12 + RE in 7-10 days

http://www.marketwire.com/press-release/allana-potash-intersects-strong-potash-mineralization-basin-centre-with-378-kcl-over-tsx-venture-aaa-1523089.htm

June 06, 2011 09:59 ET
Allana Potash Intersects Strong Potash Mineralization in Basin Centre With 37.8% KCl Over 4.10 Metres and Provides Update on NI 43-101 Report

- Hole 12 Intersects Strong Potash Mineralization of 37.80% KCl Over 4.10 Metres Within 15.20 Metres of 26.17% KCl

- Results from Hole 12 Indicate Continuity of Potash Mineralization Into Centre of Basin

- Management Intends to Include Hole 12 Data in the Company's Upcoming NI 43-101 Technical Report Due in Mid-June

TORONTO, ONTARIO--(Marketwire - June 6, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that it has intersected strong potash mineralization in the central portion of the evaporite basin and at relatively shallow depths. Hole DK-11-12 ("Hole 12") intersected 15.2 metres of 26.17% KCl including 37.84% KCl over 4.10 metres. The presence of strong potash in the central part of the property suggests strong continuity of the potash horizon and the deposit remains open to the east which management believes increases the resource potential in this direction. This work is part of the upcoming update to Allana's National Instrument 43-101 ("NI 43-101") technical report.

Farhad Abasov, President and CEO, commented: "We are very pleased with the strong potash mineralization intersected in Hole 12. This hole is important as it provides a strategic link between the historic Musley Deposit and the centre part of the evaporite basin intersected in Hole 4. We believe that the presence of strong potash mineralization in Hole 12 further indicates continuity of the potash horizon into the centre of our property and supports our geological model of potash mineralization throughout the southern portion of the basin. Management intends to incorporate Hole 12 data in the Company's upcoming NI 43-101 technical report. Our consultants are in the process of finalizing the NI 43-101 technical report and we expect to be able to release the resource numbers in 7-10 days."

Drill Hole 12 has intersected robust potash mineralization up to 26.17% KCl over 15.20 metres from 344.00 metres to 359.20 metres depth comprised primarily of sylvinite and carnallite. Included in this section is a high grade interval of 37.84% KCl over 4.10 metres of mostly sylvite which correlates to the Sylvinite Zone. The remainder of the intersection contains carnallite and is part of the upper part of the Intermediate Zone. The Kainitite Zone was intersected deeper in the hole and analytical results are still being processed by SRC.

Hole 12 was collared approximately 1500 metres east of Hole 8 and was drilled vertically (see attached figure). Hole 12 intersected the Sylvinite, Intermediate and Kainitite zones of potash mineralization as defined by the Parsons drilling in the 1950s and 1960s. The main Sylvinite Zone returned 4.10 metres grading 37.84% KCl starting at a depth of 349.00 metres within a zone of potash mineralization 15.20 metres thick with contains significant carnallite which preliminary interpretations indicate is the upper part of the Intermediate Zone. The Kainitite Zone was intersected in Hole 12 and analytical results for this zone are expected this week.

Hole 12 occupies a significant location in the evaporite basin and essentially links or indicates good continuity between the Musley Deposit and deeper parts of the basin first intersected in Hole 4. The mineralized area in this region is now at least 4 kilometres long by 5 kilometres wide and has the potential to add significantly to the property resource. This area was not drilled previously and was not included in the original resource estimate completed in 2008. Samples are currently being selected for XRD analysis to determine mineralogy. 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 ID FROM (m) TO (m) WIDTH (m)* KCL (%) ZONE

DK-11-12 344.00 359.20 15.20 26.17 Sylvinite/Int.
Including 349.00 353.10 4.10 37.84 Sylvinite

*Drilled width

Exploration drilling is continuing in the far eastern part of the property at Holes 22 and 23 to test for potash mineralization in this unexplored region of the property. Remaining samples from Holes 11, 12, 14, 18, 19 and 20 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.

Allana is also pleased to report that Ercosplan has made significant progress with the upcoming NI 43-101 report and resource estimate update. Meetings with Ercosplan last week indicate that the report with resource figures should be completed by mid-June at which time they will be released.