Allana Potash Starts PEA for SOP Production at Danakhil Project

Allana Potash (TSX:AAA) has announced it is starting its Preliminary Economic Assesment (PEA) on its Kainitite resources located on its Danakhil project, in Ethiopia. The PEA is to examine viability of Sulphate of Potash production, which could command a premium price compared to its Muriate of Potash.

According to the press release:

The PEA will outline the potential to produce SOP (K2SO4) from kainite derived from the Kainitite Horizon in the project area. The Kainitite Horizon is interpreted as a primary evaporite unit in the basin and has been intersected in diamond drilling in most of the mining license area. The PEA will examine the use of solution mining to mine the Kainitite Horizon and produce 1,000,000 tonnes per year of SOP product from the brine as a separate operation from the current development program which will produce 1,000,000 tonnes per year of MOP

Farhad Abasov, president and CEO, said:

We are pleased to have engaged ERCOSPLAN to complete a PEA evaluating the potential of the vast Kainitite resources on the Danakhil Project. As we move to completion on the development of our MOP operations, it makes sense to start to plan for the development of SOP as an Allana product line, particularly given the extent of our estimated SOP-based resource.

Click here to read the Allana Potash Corporation (TSX:AAA) press release