TORONTO, ONTARIO--(Marketwire - March 19, 2013) - Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") announces that it has filed a technical report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" (the "FS Technical Report") in accordance with National Instrument 43-101 in support of the February 4, 2013 news release, which outlined the positive results of a Feasibility Study on its Danakhil Potash Project in Ethiopia.
The FS Technical Report is based on production of 1 Million tonnes per year of Muriate of Potash ("MOP") via solution mining and generated the following highlights:
- After-tax Net Present Value of US $1.32 billion at a discount rate of 10%, based on potash price of $430/tonne
- After-tax Internal Rate of Return of 33%
- Life of mine approximately 25 years extracting only Sylvinite through solution mining
- Production capital expenditures including mining and processing facilities ("Production CAPEX") of US$579 million
- Port and logistics infrastructure ("Infrastructure CAPEX") of US $63 million
- Total CAPEX Contingencies of US$64 million included in the Production and Infrastructure CAPEX estimates
- Total production operating expenditures ("Production OPEX") of US$69.25/tonne
- Total transportation expenditures ("Transportation OPEX") (including transportation/handling, port, loading costs) FOB on Vessel of US$29.50/tonne
- Based on Annual Production of one million tonnes of MOP per year using solution mining from Proven and Probable Sylvinite Mineral Reserves only
- Significant Carnallitite or Kainitite resources not included in the production plans in this Feasibility Study
- Adequate water delineated (approx. 18 M cubic metres annually) by hydrogeological study via current reservoir of 160 M cubic metres and annual recharge of 25-55 M cubic metres.
The FS Technical Report is available on SEDAR at www.sedar.com and on Allana's website at www.allanapotash.com.
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. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, a member of Liberty Mutual Group. Allana has measured and indicated Sylvinite resources as at February 2, 2013 of 327.42 million tonnes of 28.31% KCl; and inferred Sylvinite resource of 90.76 million tonnes grading 27.80% KCl, as outlined in this press release. In addition, the Danakhil Projects hosts measured and indicated Kainitite resources of 701.55 million tonnes at 20.26% KCl, inferred Kainitite resource of 373.71 million tonnes of 20.35% KCl; measured and indicated Upper Carnallitite resources of 78.5 million tonnes grading 18.4% KCl, inferred Upper Carnallitite resource of 155.53 million tonnes of 16.95% KCl; measured and indicated Lower Carnallitite resources of 269.10 million tonnes of 10.86% KCl, inferred Lower Carnallitite resource of 130.7 million tonnes grading 11.7% KCl. The foregoing mineral resource estimates with respect to Kainitite and Carnallitite are as at April 27, 2012. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates refer to Allana's Technical Report entitled "Updated Resource Report for the Danakhil Potash Deposit, Afar State/Ethiopia" dated June 13, 2012, effective April 30, 2012 and the FS Technical Report filed at www.sedar.com. Allana has approximately 275.9 million shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA".
The Feasibility Study and the mineral resource and reserve estimates were completed by ERCOSPLAN under the supervision of Dr. Henry Rauche, Ph.D., EurGeol, Managing Director, CEO ERCOSPLAN, Dr. Sebastiaan van der Klauw, Ph.D., EurGeol., Consulting Geologist, ERCOSPLAN and Euro Ingenieur Ralf Linsenbarth of ERCOSPLAN Ingenieurbüro Anlagentechnik GmbH who are each independent Qualified Persons for the purposes of National Instrument 43-101. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person for the purposes of the Feasibility Study 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. 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.