Jan 10 2011
Allana Potash Corp. (TSX VENTURE:AAA) has announced that drill hole DK-10-07, located in the northern section of Allana's property, intersected two significant zones of potash mineralization including the highest grade intersection to date.
Hole DK-10-07 intersected 37.8% KCl over 2 metres, and 22.0% KCl over 6.7 metres in two distinct intersections at shallow depths beginning at 136 metres. The upper interval occurs within a thick potash sequence that returned 23.4% KCl over 9.2 metres.
Farhad Abasov, President and CEO, commented: "Allana is very pleased to have identified high grade zones of potash mineralization at very shallow depths and to have extended the Musley deposit an additional 700m to the east. Hole DK-10-07 is situated close to the newly acquired Haro concession and we believe that these positive results indicate significant potential for the Musley Deposit to extend to the Haro concession."
Hole DK-10-07 was collared in the northeastern portion of the Allana property approximately 700 metres southeast of drill hole DK-10-03 near the newly acquired Haro concession. Hole 07 was drilled vertically and may represent a further extension of the Musley Deposit east onto the Haro concession. True widths of the potash zones are estimated to be very similar to drilled widths due to the flat-lying nature of the potash horizons.
Geological logging of the hole suggests that the upper intersection correlates with the Sylvinite Zone as defined by Parsons at the historic Musley Deposit. Similarly, the lowest intersection, 6.7 m at 22.04% KCl, is dominated by kainite and appears to correspond to the Kainitite Zone in the Parsons stratigraphy. XRD work is in progress at Saskatchewan Research Council to better define the potash mineralogy.
In addition to Hole DK-10-07, holes DK-10-08, 09, and 10 were completed prior to the Christmas break and are in the laboratory undergoing analysis. Results should be available in the next few weeks. Down-hole seismic work and down-hole geophysical surveys were also completed prior to the Christmas break and this data are currently being compiled.
Exploration drilling will resume next week and continue on the Haro concession to define further extensions of the Musley Deposit, and in the south, west of drill hole DK-10-06. Allana will continue to drill in the vicinity of DK-10-06 to investigate the extent of promising potash mineralization intersected in this hole with one drill rig while the second rig finishes additional 1-2 holes on the Haro concession. Road building is scheduled to start in the next month to access drill targets on the far eastern portion of the Allana property where preliminary seismic work suggests the stratigraphy dips back toward the surface.
In addition, the Company announces that it has granted a total of 2,110,000 stock options pursuant to the Stock Option Plan of the Company to various officers, directors and consultants of the Company. The options will be exercisable for $0.69 per option and shall expire on January 10, 2016. Such options shall vest immediately subject to the applicable regulatory hold period. The grant of options remains subject to receipt of all required regulatory approvals.
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.