Allana Potash intersects shallow potash in a previously unexplored area

Allana Potash Corp. (TSX VENTURE:AAA) (“Allana” or the “Company”) is pleased to announce that drill hole DK-11-16 intersected significant potash mineralization of 29.80% KCl over 4.00 metres starting at a depth of 125.20 metres. Hole 16 intersected two strong zones of potash mineralization which are interpreted to correlate with the Sylvinite Zone and Kainitite Zone in a previously unexplored part of the basin. The Sylvinite Zone returned 6.50 metres of sylvinite which graded 24.79 % KCl and includes a 4.00 metre interval that returned 29.80% KCl. Further down the hole, 5.00 metres of kainitite was intersected which returned 20.29% KCl.

Farhad Abasov, President and CEO, commented: “We are very pleased with the identification of new potash mineralization in the southwestern part of the property. This region was previously unexplored with no previous drilling. Management intends to incorporate data from Hole 16 in the Company’s new National Instrument 43-101 technical report, expected to be issued on or about the end of May, 2011.”

Hole 16 was collared approximately 1,000 metres southwest from Hole 8 and was drilled vertically (see attached figure). Hole 16 intersected the Sylvinite and Kainitite zones of potash mineralization as defined by the Parsons drilling in the 1950s and 1960s. The Sylvinite Zone returned 6.50 metres grading 24.79% KCl starting at a depth of 125.20 metres. A high grade core of 4.00 metres of sylvinite returned 29.80% KCl. A robust Kainitite Zone was intersected at a depth of 168.20 metres and returned 5.00 metres grading 20.29% KCl.

Drill results from Hole 16 are similar to those of Holes 6, 8, and 11 which delineate an area of potash mineralization approximately five kilometres long by four kilometres wide. Samples from Holes 12, 14, 17, 18, and 19, en route or currently in the lab, will further define this zone, which management believes could add significantly to the potash resource on the property. In addition, similar to Hole 8, Hole 16 intersected potash at relatively shallow depths (125.20 metres) and management plans to evaluate the possibility of open pit mining in its upcoming feasibility study. 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.

Read the full news release here. Map is from Allana Potash.