TORONTO, ONTARIO--(Marketwire - March 9, 2010) -
NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES.
Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that it has awarded a supervision and advisory contract to ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau (ERCOSPLAN) for its Ethiopian Potash Project. ERCOSPLAN completed the NI 43-101 compliant technical report for the Ethiopian Potash Project for Allana in 2009 and is a world-recognized leader in potash exploration techniques and mining. In addition to Allana, ERCOSPLAN's clients include some of the largest potash exploration and mining companies in the world including Uralkali, Sylvinit, K&S, Potash One, MAG Industries and CVRD.
As the successor to the former Kali-Ingenieurbüro Erfurt, ERCOSPLAN is a specialist consulting and engineering group whose core activities include project management in all aspects of the extraction and processing of industrial potash and mineral salts. ERCOSPLAN has unique expertise in the following fields:
- Exploration and evaluation of minerals salts and natural brine deposits.
- Conventional and solution mining of mineral salt deposits and natural brines.
- Processing of mineral salts and natural brines.
- Environmental sustainability in modern mines and processing plants.
ERCOSPLAN consists of six companies and has been active in other areas of Africa including the recently completed updated reserve/resource estimates for MagMinerals Kouilou Potash Project in the Republic of Congo.
Allana is planning a 6-hole 2,500 metre drill program designed to confirm historic drilling results, to confirm the accuracy of the previous resource estimate and to potentially increase the estimated mineral resource. It is expected that drill holes will vary in depth from 250 metres to 800 metres and will test both potash horizons near the current resource as well as in the centre of the evaporite basin. This will be the first phase of Allana's exploration program. It is planned that the drill program will be followed by down-hole seismic studies (vertical seismic profiling) and a program of surface 2D seismic over the southern part of the basin.
Road rehabilitation work on the main access road to Allana's Ethiopian Potash Project is now complete and heavy machinery has been moving to site. The drill equipment has cleared Customs and is scheduled to be loaded on large trucks this week. Transit time to Dallol from Djibouti is approximately six days after which the management expects the drilling program to start. Two camp shipments have also cleared Customs and shipping time is estimated to be similar to the drill equipment.
Farhad Abasov, Allana's President and CEO, stated: "Allana is very pleased to engage ERCOSPLAN to support our geological team in Ethiopia. Potash exploration is unique and having the world-class leader assisting Allana will ensure that all technical aspects of the project are carried out to the highest quality standards. We are also pleased with a steady progress on exploration. Upon the completion of the recently announced financing, Allana will be fully funded to complete its exploration program."
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.
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 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 98.7 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".
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 impact of the drilling contract on the Company, the planned exploration program; the timing and costs of the exploration program, the estimation of mineral resources; the ability to attract required financing;success of exploration activities; permitting time lines and permitting; and government regulation of mining operations. 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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