Allana Potash Commences Phase I Drilling at Ethiopian Potash Project
In addition to the start of drilling, camp construction is approaching completion near the village of Hamadela and plans to expand the camp to accommodate additional personnel have been initiated. The camp will accommodate approximately 35 people and provide a safe and efficient base of operations for all upcoming Allana activities.
The Phase 1 programme currently consists of 7 holes and is designed to confirm historic drilling results, to confirm the accuracy of the previous resource and to potentially increase the resource. It is expected that drill holes will vary in depth from 200 metres to 800 metres and will test potash horizons near the current resource as well as in the centre of the evaporite basin. It is planned that the drill programme will be followed by down-hole seismic studies (vertical seismic profiling) and a programme of surface 2D seismic over the southern part of the basin.
Farhad Abasov, President and CEO of Allana Potash, stated: “We are excited to start our drill program in the Danakil Depression almost 50 years after Parsons conducted its potash exploration. I would like to commend and congratulate our in-country exploration team which has done a terrific job in this regard. With the recently closed financing, Allana Potash is now in a position to complete not only the first phase of drilling, but also expects to complete 2D and down-hole seismic programs followed by a planned drill campaign of 10,000 meters.”
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 with NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008). Allana has approximately 114.8 million shares outstanding and trades on the TSX-Venture exchange under the symbol “AAA”.
Peter J. MacLean, Ph.D., P. Geo., Allana’s Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.
Except for statements of historical fact relating to the Company, certain information contained herein constitutes ”forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect, results and estimated timeline of the drill programme and camp construction on the Company, estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; limitations on insurance coverage and the effect of terminating the investor relations contract. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE: Allana Potash Corp.