Mining vs AI: What’s wrong with this picture?
As the saying from mid-19th century California goes, during a gold rush the easiest way to get rich is selling shovels and picks.
Allana Potash Corp. announced on Monday that it has intersected three zones of potash mineralization in Hole DK-11-19 (“Hole 19”) in the southwest portion of Allana’s land position. Hole 19 intersected a new zone of potash mineralization which returned 61.26% KCl over 0.90 metres within 7.30 metres 37.74% KCl and is referred to here as the Upper Sylvinite Zone, as well as the main Sylvinite Zone and the Kainitite Zone. The traditional Sylvinite Zone returned 3.04 metres of 30.85% KCl and the Kainitite Zone returned 22.09% KCl over 7.23 metres.
The presence of strong potash mineralization in the southwestern part of the property suggests strong continuity of the potash horizon and the deposit remains open to the south and east which management believes increases the resource potential in this direction. Remaining analytical results from Hole 12 were also received and the Kainitite Zone returned 6.83 metres of 22.30% KCl. This work will be included in the upcoming update to Allana’s National Instrument 43-101 (“NI 43-101”) technical report.
Farhad Abasov, President and CEO, commented: “Allana is extremely encouraged by the new high grade zone of sylvinite intersected in Hole 19 which management believes adds additional resource potential to our project. Hole 19, with 61.26% KCl over 0.90 metres, returned the highest grade potash on the project to date. The combined thickness of potash intersected in Hole 19 is approximately 17.5 metres and the potash stratigraphy remains open to the south and east for expansion. In addition to strong results from Hole 19, management believes the remaining data from Hole 12 confirms the continuity of the Kainitite Zone throughout this part of the basin. Allana intends to incorporate Hole 19 and remaining Hole 12 data in the Company’s upcoming NI 43-101 technical report.”
Drill Hole 19 intersected three zones of potash mineralization comprised of two zones of sylvinite and one zone of kainitite mineralization. The Upper Sylvinite Zone was intersected at a depth of 263.50 metres and returned 37.74% KCl over 7.3 metres and includes a very high grade zone of 61.26% KCl over 0.90 metres. This is the highest grade potash intersected in the Dallol area to date. A second sylvinite zone, which corresponds to the Sylvinite Zone defined by Parsons in the 1960’s, was intersected at a depth of 547.35 metres and returned 30.85% KCl over 3.05 metres. The third potash zone encountered correlates with the Kainitite Zone which was intersected at a depth of 625.47 metres and yielded 22.09% KCl over 7.23 metres.
In addition, the remaining results for Hole 12 have been received and the bottom portion of the hole intersected the Kainitite Zone at a depth of 419.42 metres. The Sylvinite Zone was intersected at 344.00 metres and these results have been reported previously (see June 6, 2011 News Release). The Kainitite Zone returned 22.30 % KCl over 6.83 metres and management believes this will add significant potential to increase the potash resource in this part of the project.
Hole 19 was collared approximately 1,600 metres east of Hole 11 and was drilled vertically (see attached figure). Hole 19 occurs in the southwestern portion of Allana’s project area and the deposit remains open to the south and east as these areas have not been drilled. Strong potash mineralization in Hole 19 suggests that the potash stratigraphy extends to the southern margins of Allana’s land position and east into the deeper parts of the basin. Additional drilling is planned to test these extensions and is expected to be completed in 2011.
The mineralized area in this southwest region is now at least four kilometres long by five kilometres wide and has the potential to add significantly to the property resource. 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. The zones of potash mineralization are outlined in the following table:
*Drilled width
1 Released previously
Exploration drilling is continuing in the far eastern part of the property at Hole 23 to test for potash mineralization in this unexplored region of the property and Hole 24 in the southwestern portion of the property. Remaining samples from Holes 14, 18, 20, 21 and 22 are undergoing analysis or are en route to the laboratory in Saskatoon, Canada.
As Allana reported on June 6, 2011, Ercosplan is making significant progress with the upcoming NI 43-101 report and resource estimate update. Recent discussions indicate that completion of the report is on schedule and is expected to be completed in 5-7 days.
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. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, a member of Liberty Mutual Group. Allana has 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 192.4 million shares outstanding and trades on the TSX-Venture Exchange under the symbol “AAA”.
Picture of hot springs on the company’s potash property that can reach temperatures of 120 degrees Celcius on surface, courtesy of the company.
For more on the company click here.
