Allana Potash Corp.

Allana Potash Corp.

July 07, 2010 11:59 ET

Allana Potash Reports Further Positive Drill Results Continuing to Confirm Shallow Potash Mineralization

TORONTO, ONTARIO--(Marketwire - July 7, 2010) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce the analytical results from drill hole DK-10-03 that provide further confirmation of shallow potash mineralization on its Ethiopian Potash Project returning 19.52 % KCl over 9.95 metres. Hole DK-10-03 is situated in the northwestern portion of Allana's claim block and was targeted to confirm historic drill results and test the extension of the Musley Deposit to the east-northeast.

Hole DK-10-03 was drilled vertically and is collared approximately 700 metres south of Hole DK-10-02. Hole DK-10-03 intersected strong potash mineralization yielding 19.52 % KCl over 9.95 metres (drilled width) from 151.25 metres to 161.20 metres, including 28.90 % KCl over 2 metres (drilled width) from 152.35 metres to 154.35 metres. This zone is interpreted to be the upper portion of the potash-bearing Houston Formation and X-Ray Diffraction (XRD) work is ongoing to determine the potash mineralogy. The confirmation of strong potash mineralization in this hole confirms Parsons drilling results and extends the Musley Deposit an additional 700 metres to the east where the deposit remains open to expansion. 

Drilling is continuing at hole DK-10-04 in the centre part of the basin south of the Crescent Carnallite Deposit. In addition, management and its consultants identified other potash prospective horizons in hole DK-10-01 and additional sampling has been completed and these samples are being analyzed in Saskatoon. As reported earlier, the previous samples from DK-10-01 returned low potash mineralization, however, if new horizons contain significant potash, DK-10-01 will exceed management's expectations for this part of our potash property.

As mentioned above, mineral species identification is also in progress for holes 1, 2 and 3 as selected samples have been chosen for XRD analysis to determine the mineralogy of the potash and evaporite minerals.

Farhad Abasov, President and CEO, commented: "We are very pleased to have confirmed and exceeded the previous drilling results in this area. The results from DK-10-03 have also extended the potash mineralization associated with the Musley Deposit an additional 700 metres to the east. This hole provides further confirmation of shallow potash mineralization in this part of our property. We are also excited about additional sampling of the new potential potash-bearing horizons in hole DK-10-01. We expect to report the results of the new sampling of these potential zones from DK-10-01 in coming days."

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 with NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (see News Release Sept. 17, 2008). Allana has approximately 117.6 million shares outstanding and trades on the TSX-Venture Exchange under the symbol "AAA".

Quality Control and Quality Assurance

Allana employees follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. Procedures for handling core samples begin with securing the potash-bearing HQ-NQ-sized core at the drill site in plastic poly-tubing which is then thermally sealed. Core is placed in plastic core boxes and transported to Allana's camp for geological logging, geotechnical logging and photographing. Significant intervals are dry cut in half using a specially modified tungsten carbide bladed band-saw. Half core samples are then double bagged and thermally sealed prior to transporting to Addis Ababa by Allana personnel. In this initial phase, halite blanks are randomly inserted into the sample stream at a rate of 1 in 20 and sent for analysis with the core samples. The remaining core is re-sealed in plastic poly-tubing and the core boxes secured at Allana's exploration camp. Upon arrival in Addis Ababa core samples are stored at Allana's small warehouse facility and then taken to the Ethiopian Ministry of Mines & Energy where permission is obtained to export the samples. The bagged samples are then carefully packed into boxes and shipped via DHL to the Saskatchewan Research Council in Saskatoon. This sampling procedure was initiated by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, Allana's potash consulting firm, supervised by Allana's Ethiopian based Project Manager Jason Wilkinson, M.Sc., and periodically reviewed by Allana's Senior Vice President of Exploration, Peter J. MacLean, Ph.D., P. Geo.

Allana is utilizing SRC's Potash ICP Analysis package designed for multi-element analysis of potash samples. Upon arrival at SRC Geoanalytical Laboratories core samples are jaw crushed to 60 % @ -2mm and 100 g sub sample is split out using a riffler and transferred to vials. The subsample is pulverized to 90 % @ -106 microns using a puck and ring grinding mill to create a pulp. The grinding mills are cleaned between groups using Quintus quartz. The pulp is then transferred to a labelled plastic snap top vial. An aliquot of pulp is placed in a test-tube with 15 ml of 30°C DI water. The sample is shaken. The soluble solution is then analyzed by ICP-OES. The method is suitable for the soluble analysis of commercial potash (Sylvite). The soluble solution is then analysed by ICP-MS. In addition samples are analysed for FeO (wt%), Br and Cl by MS, plus insolubles. SRC Geoanalytical Laboratories has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).

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.

Forward-Looking Statement

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect and estimated timeline of the drilling and assay results on the Company, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims; 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.


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