Issue link: http://resourceworld.uberflip.com/i/107613
mining Allana Potash – pilot solution mining underway by Kathrine Moore Allana Potash Corp. [AAA-TSX] is a Canadian potash company focusing on the exploration and development of their Dallol Project in the Danakhil Depression, Ethiopia. The project is comprised of four potash concessions totaling ~312 km2 where small-scale potash mining has been carried out intermittently from the early 1900s. The Dallol Project has an April 2012, updated NI 43-101 compliant mineral resource estimate based on the results of 45 drill holes and a 2D seismic survey. The mineral resource estimate was prepared by ERCOSPLAN and is comprised of estimated measured and indicated mineral resources totaling 1,298 M tonnes containing 251 M tonnes of KCl and additional estimated inferred mineral resources of 588 M tonnes containing 109 M tonnes of KCl. In November last year, Allana considerably enlarged the size of their project by completing the strategic acquisition of Nova-Ethio Potash Corp. and gaining a strategically located potash license 68 www.resourceworld.com adjacent to the western and southern boundaries of the Allana license. The Nova exploration license covers approximately 154 km2. According the company's November news release, "the Nova license also incorporates extensions of the alluvial fans and potential aquifers present on the western portion of the Allana license." On December 11, Allana announced that its Feasibility Study (FS) led by ERCOSPLAN is "progressing to completion." The company stated that, "Pilot evaporation ponds, pilot solution mining, rock mechanics test work, hydrogeological studies, processing design and optimization and the Environmental, Social, and Health Impact Assessment (ESHIA) study by Environmental Resources Management (ERM) are providing data for the finalization of the FS and submission of the ESHIA for government approval." Farhad Abasov, President and CEO, commented in the December 11, 2012 news release: " Allana is pleased by the completion of various aspects of the Feasibility Study and progress in all areas. Technical work on site is approaching completion and pilot solution mining of the Sylvinite Zone is underway, fed by water from Allana's license. Processing studies, rock mechanic testwork, and the ESHIA are all on schedule and being completed by our technical consultants ERCOSPLAN and ERM." Abasov noted that "the hydrogeological studies have yielded positive preliminary results having found water in all drilled wells. We expect to release the preliminary results shortly. Allana is pleased with the results of the preliminary drilling completed by Nova on its license. These drill results show an extension of the potash mineralization to the west and management believes this represents potential for Allana to expand mineral resources beyond the core Allana license. We are also very pleased with the significant progress in our ongoing work to secure construction financing and long-term supply agreements for our future production." On December 12, Allana attended a ceremony for the laying of the port cornerstone jointly by the President of Djibouti and the Prime Minister of Ethiopia. Allana representatives were acknowledged as an integral part of the port's successful start and its future. The port represents a significant investment in the economic growth of the Tadjourah region. Road construction is underway to link the Dallol area to Afdera where paved roads provide access to Djibouti. Ethiopia has also received financial commitments from China and India to construct some 5,000 km of railway in the country including access to the Danakhil potash region. Allana Potash also has a 100% interest in over 154,000 hectares in the Potash rich Nequen province of Argentina. n february 2013