Allana just keeps on growing Dallol

Allana Potash (AAA-V) continues to define what is shaping into a world class potash play in Ethiopia.

The company has grabbed the market’s attention over the last 12 months with shallow depth intercepts of up to 37.8 % KCl and now Allana says it has hit upon new mineralization in the southwestern part of its Dallol Potash project in Ethiopia’s northeastern Danakil Depression.

The zone was intersected by one drill hole which returned a highlight intercept of 4 metres grading 29.80% KCI.

That mineralization continues the projects ability, thus far, to yield shallow mineralization as the drill struck KCI at a depth of just 125.2 metres.

The highlight intercept came out of the shallower sylvinite zone, which overall returned 6.5 metres grading 24.79% KCI.

The hole, however, continued down and struck a lower grade Kainitite zone as well. That zone was struck at a depth of 168.2 metres and returned 5 metres grading 20.29% KCl.

Allana says the location of the hole bodes well for increasing the overall resource of the project in an upcoming resource estimate update.

“This region was previously unexplored with no previous drilling,” Farhad Abasov, Allana’s president and chief executive said in a statement. “Management intends to incorporate data from [the hole] in the company’s new National Instrument 43-101 technical report, expected to be issued on or about the end of May.”

The latest hole was collared 1,000 metres southwest from Hole 8 which hit mineralization at 164 metres and returned highlight intercepts of 4.1 metres grading 24.6% KCI and 2 metres grading 31.58% KCI.

Allana says the latest results are similar to results from hole 8, as well as holes 6 and 11, as they all delineate an area of potash mineralization roughly 5-km long by 4-km wide.

The zone will be better understood once results from five other holes come in. Those assays are currently pending.

Allana says it expects the area to add significantly to the project’s resources.

Dallol currently has inferred 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 that gives the company 105.2 million tonnes with a composite grade of 20.8 % KCl.

That resource estimate was completed in 2008 and did not consider the southwestern section of property.

In Toronto on April 26 the company’s shares were up 6% or 11¢ to $1.91 on 2.5 million shares traded.