Allana Potash Corp announced it has intersected to zones of strong potash mineralization on its potash concession in Ethiopia.
The company made known on Tuesday that a hole located on the Western part of its property intersected a strong Sylvinite Zone at a depth of 193.7 metres, yielding 32.02% KCI over 5.35 metres, including a high grade section from 195.2 to 197.7 metres of 43.85% KCI.KCI is the composite grade of all four potash-bearing beds including sylvinite, upper and lower carnallite and kainitite.
Allana also encountered a strong Kainitite Zone at a depth of 215.3 meters, returning 22.5% KCI over 6.9 meters the company said.
The company is encouraged by the continued strong potash mineralization in the western part of its concession said said Farhad Abasov, President and CEO of Allana.
The continued performance seen at the concession is expected to enable Allana to upgrade mineral resources to the Measured and Indicated categories from that of Inferred according to Abasov. The company will also be able to add to the Inferred category he added.
The nature of the Sylvinite Zone, which is shallow and high grade, also makes it conducive to solution mining including solar evaporation recovery explained Abasov.
It is to be remembered that An independent preliminary economic assessment of Allana Potash gave the assent an after-tax net present value of 1.85 billion US dollars and a 36.8% internal rate of return.
The PEA stated that a one million ton per annum mine at the Dankil project will cost 796 million US dollars to build.
The capital cost figure makes the projects the lowest cost and possibly the highest return potash project in the world according to Farhad Abasov CEO of Allana.
Source: Proactive Investors