Vancouver, British Columbia, May 7, 2012 - Mackie Research Capital has published an updated research report for Allana Potash (TSX:AAA) (OTCQX:ALLRF). Following the release of an updated NI 43-1-1 Resource, analyst Jaret Anderson maintained his hold rating, and his $0.80 target price, which is a 27% premium to today's price of $0.63.
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Allana Potash is a development-stage potash company, and is currently developing its 100% owned Danakhil potash project in Ethiopia. Danakhil is currently envisioned as a 1 to 2 million tonne per year solution or open-pit potash mine.
The resource revision incorporates the results of exploration and in-fill drilling conducted over the past eleven months and has helped to reclassify some tonnage from the inferred category to the measured and indicated categories, as well as increase total tonnage.
In-situ KCI resource in the measured and indicated categories essentially double to 251 million tonnes when compared to the June 2011 estimate.
Currently, 95% of world use of potash is for fertilizer, and the company considers itself the closest supplier to key Asian markets.
Anderson stated "The substantial increase in resource tonnage as a result of AAA's recent drilling campaign confirms the sizeable potash deposit present in the Danakil potash basin in Ethiopia."
Mackie Research cautions, "While the updated resource estimate has increased the size of the resource, significant challenges in the Danakil Depression remain in the form of access to key infrastructure and regional political stability."
The company is examining two options for getting the potash to an existing bulk terminal; the first by road and the second by rail.
Allana Potash expects to have a bankable feasibility study completed in the 4th quarter of 2012.
The company has raised $75 million and has ample cash on-hand to fund pre-construction work. It has 228 million shares outstanding, and with the current price of $0.63, is capitalized at $144 million.
For more information about Allana Potash, please visit their website at www.allanapotash.com (http://www.allanapotash.com/), or contact Investor Cubed by phone at 647-258-3310 or email info@investor3.ca (mailto:info@investor3.ca).
For a copy of the research report, please contact your nearest Mackie Research office. The locations are available on their website www.mackieresearch.com (http://www.mackieresearch.com/).
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