TORONTO, ONTARIO -- (Marketwire) -- 03/07/11 -- Allana Potash Corp. (TSX VENTURE: AAA) ("Allana" or the "Company") is pleased to announce that drill hole DK-11-11 intersected significant potash mineralization including one metre of 44.5% KCl. Hole 11 is located at the southwestern portion of the Allana land package and indicates the extension of significant potash mineralization into this largely unexplored region. Hole DK-11-11 intersected two robust potash zones highlighted by 33.8 % KCl over 3.4 metres, including 44.5% KCl over one metre, and 22.0% KCl over 3.8 metres in the second zone. Both zones were intersected at shallow depths with potash mineralization beginning at approximately 115 metres below surface.
Farhad Abasov, President and CEO, commented: "We are very pleased with the drill results from Hole 11. This hole was collared in a previously unexplored part of the property and designed to test the extension of the potash mineralization south from Musley and west from Hole DK-10-06. The results support the extension of the potash horizons an additional four kilometres south from Hole 8 and 2.5 km southwest from Hole 6 and management believes that this extension could add significantly to the project's resource potential. Particularly encouraging is the high grade zone, the highest grade yet published in the Dallol region, of 44.5 % KCl over one metre within a robust zone of sylvinite some 3.4 metres thick. In addition, results from Hole 11 indicate that the potash horizon is shallowing in this southwestern sector which management believes bodes well for our open pit evaluations."
Hole DK-11-11 was collared approximately 2.5 kilometres southwest from Hole 6 and was drilled vertically (see attached figure). Hole 11 intersected two prominent zones of potash mineralization including one metre of 44.5% KCl in the core of the Sylvinite Zone within a wider intersection of 3.4 metres which returned 33.8% KCl. The Kainitite Zone was also intersected in this drill hole and returned 7.3 metres of 17.6% KCl which includes a higher grade section of 3.8 metres grading 22.0% KCl. 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:
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HOLE ID FROM (m) TO (m) WIDTH (m)(i) KCL (%)
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DK-11-11 115.85 119.20 3.35 33.77
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including 117.25 118.25 1.00 44.48
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125.20 132.50 7.30 17.62
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including 128.70 132.50 3.80 22.00
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(i)Drilled width
Exploration drilling is continuing in the southwestern part of the property at Holes DK-11-12 and DK-11-14 to further delineate the extent of the potash mineralization. Samples from DK-11-13 are en route to the laboratory in Saskatoon, Canada.
About Allana Potash Corp.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally with its major focus on a previously explored potash property in Ethiopia with Inferred Mineral Resources of 73.9 million tonnes of kainitite mineralization grading 61.7 % kainite and 31.3 million tonnes of sylvinite resource grading 25.4 % sylvite (combined 105,200,000 tonnes with a composite grade of 20.8 % KCl (see News Release dated Sept. 17, 2008). Allana has approximately 177 million shares outstanding and trades on the TSX-Venture Exchange under the symbol "AAA".
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.
Forward-Looking Statement
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect and estimated timeline of the drilling and assay results on the Company, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting, ; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims; Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
To view the Significant Drill Results, please visit the following link: http://media3.marketwire.com/docs/allana_potash_drill_results_march7.pdf
NEITHER THE 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.
Contacts:
Allana Potash Corp.
Farhad Abasov
President and CEO
+1-416-309-2691
fabasov@allanapotash.com
