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Allana Potash Corp. (TSX: AAA) - Properties
Allana Properties
The current focus of the company is its potash project in Ethiopia. The company has acquired the option to earn 100% of three mineral properties in the Danakhil Depression, Afar State, Ethiopia. The Allana Property is located close to Mount Dallol (Danakhil Depression) at the northern end of the Ethiopian Afar State, approximately 100 km from the Eritrean Red Sea coast. The company plans to initiate exploration on the property to potentially define and develop an economic mineral resource. The Danakhil Depression, or Danakhil Graben, strikes NW-SE with an extension of more than 200 km from Lake Badda in the northwest to Lake Acori in the southeast. The Allana Property covers an extensive salt plain in the depression and has a size of approximately 145 sq km.
The infrastructure around the site is still developing and the site can only be accessed by roads of varying conditions. The historic Parsons camp is located on Dallol Mountain and the closest village is around 30 km from the site. BHP Billiton is currently building a camp at the site near Allana's property. The term potash is usually used to describe “muriate of potash” (MOP) with the chemical formula KCl. The Dallol Potash Deposit contains 4 main potash bearing minerals: Sylvite, Carnallite, Polyhalite, and Kainite. Allana's Dallol project contains significant Kainite which can be utilized to produce “sulphate of potash” (SOP). Allana's potash property at Dallol has the potential to produce both MOP and SOP. The Danakhil Depression has been the target of several exploration programs and various studies since the 1920s. The evaluation of these exploration results has indicated the potential for potash production.
Allana commissioned the production of a technical report in compliance with NI 43-101 to both summarize past exploration and to provide guidance for further project development. The study by ERCOSPLAN (a German consulting firm) and NREL calculated a NI 43-101 compliant inferred mineral resource of 105,200,000 tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl with the following composition:
Inferred geological Sylvinite resource: 31.3 million tonnes grading 25.4% KCL.
Inferred geological Kainitite resource: 73.9 million tonnes grading 61.7 % Kainite.
In addition to the resource discussed above, additional potash beds have been intersected at depth on the Allana property. Two drill holes completed by Parsons returned up to 45m of potash mineralization at approximately 680m below surface. Potash deposits typically display strong lateral continuity which supports strong exploration potential throughout the evaporite basin on the Allana concession.
Allana's potash deposit at Dallol is near surface and amenable to solution or open pit mining. Starting a Greenfield mine using these methods require less Capital expenditure and less time compared to the conventional mining. Local environment and weather is favourable for using solar evaporation if solution mining is used. Possible use of solar evaporation and geothermal power, lower local wages and absence of known environmental and permitting issues can result in significantly lower operating cost.
The infrastructure around the site is still developing and the site can only be accessed by roads of varying conditions. The historic Parsons camp is located on Dallol Mountain and the closest village is around 30 km from the site. BHP Billiton is currently building a camp at the site near Allana's property. The term potash is usually used to describe “muriate of potash” (MOP) with the chemical formula KCl. The Dallol Potash Deposit contains 4 main potash bearing minerals: Sylvite, Carnallite, Polyhalite, and Kainite. Allana's Dallol project contains significant Kainite which can be utilized to produce “sulphate of potash” (SOP). Allana's potash property at Dallol has the potential to produce both MOP and SOP. The Danakhil Depression has been the target of several exploration programs and various studies since the 1920s. The evaluation of these exploration results has indicated the potential for potash production.
Allana commissioned the production of a technical report in compliance with NI 43-101 to both summarize past exploration and to provide guidance for further project development. The study by ERCOSPLAN (a German consulting firm) and NREL calculated a NI 43-101 compliant inferred mineral resource of 105,200,000 tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl with the following composition:
Inferred geological Sylvinite resource: 31.3 million tonnes grading 25.4% KCL.
Inferred geological Kainitite resource: 73.9 million tonnes grading 61.7 % Kainite.
In addition to the resource discussed above, additional potash beds have been intersected at depth on the Allana property. Two drill holes completed by Parsons returned up to 45m of potash mineralization at approximately 680m below surface. Potash deposits typically display strong lateral continuity which supports strong exploration potential throughout the evaporite basin on the Allana concession.
Allana's potash deposit at Dallol is near surface and amenable to solution or open pit mining. Starting a Greenfield mine using these methods require less Capital expenditure and less time compared to the conventional mining. Local environment and weather is favourable for using solar evaporation if solution mining is used. Possible use of solar evaporation and geothermal power, lower local wages and absence of known environmental and permitting issues can result in significantly lower operating cost.
