Allana Potash drills 2.56 m of 40.27% KCl at Sylvinite
2011-10-18 12:28 ET - News Release
Mr. Peter MacLean reports
ALLANA POTASH DRILLING INTERSECTS SIGNIFICANT POTASH OF 40% KCL OVER 2.6 METRES IN HOLE 28
Allana Potash Corp. has intersected three zones of strong potash mineralization in hole DK-11-28 (hole 28). Hole 28 is located in the northwestern portion of the concession block and was targeted to test potash mineralization west of Hole 15. Hole 28 intersected a strong Sylvinite Zone at a depth of 198.8 metres which yielded 40.27% KCl over 3.56 metres. A robust Kainitite Zone was also intersected deeper in the hole at a depth of 266.43 metres and returned 21.98 % KCl over 8.39 metres.
Farhad Abasov, President and CEO, commented: "Allana continues to be encouraged by the continuity and strength of potash mineralization in the northwestern portion of the property as exhibited by the results of Hole 28. 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 Inferred category. The potash zones remain open to the north and northeast towards Hole 9 which bodes well for expansion of the resource. The relatively shallow and high grade nature of the Sylvinite Zone make this area ideal for solution mining with recovery through solar evaporation."
Hole 28 is part of a drilling program in the north designed to test extensions of potash mineralization and allow more material to be included in the Measured and Indicated mineral resource categories. The results for Hole 28 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 ID FROM (m) TO (m) WIDTH (m)(i) KCL (%) ZONE
DK-11-28 198.74 201.30 2.56 40.27 Sylvinite
266.43 274.82 8.39 21.95 Kainitite
(i)Drilled width
Hole 28 was drilled vertically and was collared approximately 750 metres west of Hole 15 (see attached figure). Hole 28 is located in the northwestern part of the concession block west of Hole 15 and east of the historic Musley Deposit suggesting that potash mineralization at Musley continues and is consistent at least to Hole 15. Previously released Allana drill holes in this region yielded very high sylvinite grades (see attached figure) and the results of Hole 28 suggest continuity of potash throughout the region. The potash zones remain open north and northeast of Hole 28, indicating good potential to increase mineral resources in this area.
Exploration drilling is continuing in western part of the property (Hole 36) as part of the infill drilling program that management has designed to add mineral resources and increase confidence in current resources by reducing the spacing between holes allowing more material to qualify for Measured and Indicated mineral resource categories. Samples from holes 29-35 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.
In addition, Allana is pleased to announce that it has received TSX approval and issued 1,400,000 common share purchase warrants to BNP Paribas, pursuant to their engagement to provide financial advisory services to Allana (see news release dated October 3, 2011) (the "Warrants"). Each Warrant is exercisable to acquire one common share of Allana at CAD $0.94 per warrant until October 18, 2016. The Warrants vest and become exercisable upon the completion of various milestones. The Warrants and common shares issuable upon the exercise of the Warrants are subject to a regulatory hold period until February 19, 2012.
Quality Control and Quality Assurance
Allana employees follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. Procedures for handling core samples begin with securing the potash-bearing HQ-NQ-sized core at the drill site in plastic poly-tubing which is then thermally sealed. Core is placed in plastic core boxes and transported to Allana's camp for geological logging, geotechnical logging and photographing. Significant intervals are dry cut in half using a specially modified tungsten carbide bladed band-saw. Half core samples are then double bagged and thermally sealed prior to transporting to Addis Ababa by Allana personnel. In this initial phase, halite blanks are randomly inserted into the sample stream at a rate of 1 in 20 and sent for analysis with the core samples. The remaining core is re-sealed in plastic poly-tubing and the core boxes secured at Allana's exploration camp. Upon arrival in Addis Ababa core samples are stored at Allana's small warehouse facility and then taken to the Ethiopian Ministry of Mines & Energy where permission is obtained to export the samples. The bagged samples are then carefully packed into boxes and shipped via DHL to the Saskatchewan Research Council in Saskatoon. This sampling procedure was initiated by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, Allana's potash consulting firm, supervised by Allana's Ethiopian based Project Manager Jason Wilkinson, M.Sc., and periodically reviewed by Allana's Senior Vice President of Exploration, Peter J. MacLean, Ph.D., P. Geo.
Allana is utilizing SRC's Potash ICP Analysis package designed for multi-element analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories, core samples are jaw crushed to 60 % @ -2mm and 100 g sub sample is split out using a riffler and transferred to vials. The subsample is pulverized to 90 % @ -106 microns using a puck and ring grinding mill to create a pulp. The grinding mills are cleaned between groups using Quintus quartz. The pulp is then transferred to a labelled plastic snap top vial. An aliquot of pulp is placed in a test-tube with 15 ml of 30 degrees C DI water. The sample is shaken. The soluble solution is then analyzed by ICP-OES. The method is suitable for the soluble analysis of commercial potash (Sylvite). The soluble solution is then analysed by ICP-MS. In addition, samples are analysed for FeO (wt%), Br and Cl by MS, plus insolubles. SRC Geoanalytical Laboratories has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).
Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.
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