DEVELOPING WORLD-CLASS POTASH PROJECT IN ETHIOPIA

Resource Investing News

Overview Allana controls potash concessions covering 150 km2 in the Danakil Depression. The property has an Inferred Mineral Resource of 105,200,000 tonnes with a composite grade of 20.8 % KCl. The unique environment at Dallol suggests low CAPEX and OPEX may be achievable using solution mining, solar evaporation and geothermal energy. What we like about …

Overview

Allana controls potash concessions covering 150 km2 in the Danakil Depression. The property has an Inferred Mineral Resource of 105,200,000 tonnes with a composite grade of 20.8 % KCl. The unique environment at Dallol suggests low CAPEX and OPEX may be achievable using solution mining, solar evaporation and geothermal energy.

What we like about Allana Resources

    • Inferred mineral resource 105,200,000 tonnes @ composite grade of 20.8 % KCl
    • Shallow depth (50-100 m) to potash
    • Solar evaporation and use of geothermal energy possible
    • 150 km² concession in Ethiopia, covering extensive evaporite basin
    • Strategically located, only 100 km to Red Sea
    • Significant previous exploration (nearly 300 holes in the Danakil Depression)
    • One of the largest known evaporite basins in the world with known potash mineralization
    • Amenable to solution mining and open pit
    • Potential to become the lowest cost producer in the world

Chief Property

Ethiopian Potash Project

Allana Resources has three potash concessions (Dallol Potash Project) located in Ethiopia’s northeastern Danakil Depression totaling about 150 square kilometers. The Dallol Potash Project area is approximately 100 km from the Red Sea coast. The potash mineralization in the Danakil Depression is well known with small-scale potash mining carried out intermittently from the early 1900s.

Allana’s project has been previously explored. The US-based Ralph M. Parsons company drilled nearly 300 drill holes from 1958-1967 and even sank a shaft to conduct underground mining.

Allana has completed a NI 43-101 compliant technical report for the three concessions highlighting several unique advantages of this project:

    • An Inferred Mineral Resource of 105,200,000 tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8% KCl
    • Near-surface (shallow-depth) potash mineralization (within 50 meters of surface)
    • Potential for solution or open-pit potash mining
    • 16 drill holes immediately on Allana’s property but 90 % of project unexplored
    • 2 holes intersected 45 meters of potash mineralization at a depth of 680 meters – demonstrate significant potential to expand potash resource
    • Unique environment that may provide for low-cost production utilizing solar evaporation and geothermal power
    • MOP (muriate of potash) and SOP (sulphate of potash) production is feasible

Potash occurs as both sylvite (KCl) and as kainite (KMg(SO4)Cl*2.75H2O). The sylvinite member varies in width up to 11 metres (average approx. 3 metres) and grades up to 35 % KCl. The kainitite horizon is up to 13 metres (average approx. 6 metres) and averages 62 % kainite.

Allana has embarked on a comprehensive initial exploration phase during the first quarter of 2009. This programme will include data compilation, geological mapping, structural mapping, satellite interpretation. During the remainder of 2009 Allana plans 1500 metres of diamond drilling to confirm previous drill results, upgrade portions of the inferred resource to “indicated” and to provide access for down hole seismic studies. In addition to the diamond drilling, downhole seismic survey will provide a signature of the potash horizon and lead to a 2D seismic survey over the basin to delineate the extent of the potash and identify additional drill targets.

 

Management

    • Farhad Abasov, MBA – President, CEO & Director. Over 15 years of business management experience; Most recently served as Senior Vice President at Potash One and Vice President, Portfolio Management and Vertical Integration for Uranium One. Former member of Energy Metals management team (Energy Metals was sold to Uranium One for $1.8 Billion in 2007).
    • Peter MacLean, P.Geo., PhD – Senior Vice President, Exploration. Over 20 years experience in the mining & exploration industry with junior and senior mining companies including Monarch Resources, Aur Resources and Newmont Mining.
    • Nejib Abba Biya – Senior Vice President, Business Development. Over 20 years of experience conducting business in Ethiopia, excellent working relations with the federal and regional governments.
    • Deborah Battiston – Chief Financial Officer. C.G.A. with over 20 years of accounting and financial management experience.
    • Pat Gleeson – J.D., Corporate Secretary. Corporate Securities Lawyer with vast experience in the mining sector.

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Analyst Coverage

Ubika Research coverage of Allan Resources.
Rating: Speculative Buy
12-Month Target: $1.02

Share Information

Shares Outstanding:
Warrants:
Options:
Fully Diluted:
Stock Exchange:
61,691,280
5,000,000
5,340,000
72,031,280
TSX-V: AAA

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ubika researchpotash miningsulphate of potashunderground miningmuriate of potashsolution mining
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