Allana Potash (ALLRF.PK) gave an interesting stage presentation discussing its potash deposit in Ethopia, a mining friendly jurisdiction. 22% of the stock is in strong hands with 17% held by Liberty Metals and Minerals and 5% held by the International Finance Corp. (World Bank). This is IFC’s first potash investment and Liberty’s first public investment.
Toronto Money Show: Dennis Gartman, Petrobras, Allana Potash, And Tahoe Resources
The new 43-101 report only covers 40% of the property with a measured and Indicated Resource of 673 million tonnes grading 18.7% KCL and an Inferred Resource of 596 million tonnes grading 25% KCL. The deposit has SOP potential as well which will be evaluated down the road.
Unlike most potash deposits, this one is close to the surface (100-300 meters) and amenable to open pit mining. The temperature jumps to 40 degrees C during the day allowing for solar evaporation ponds which will result in significant cost savings.
A feasibility study has been started with an estimated 3rd Quarter 2012 delivery and the first production is expected at the end of 2014. 2 drills are currently turning on site with the expectation of enlarging the resource estimate. India has committed $300 million or half of what Ethiopia needs to construct a railroad from the port in Djibouti to existing rail lines.
