Toronto-based Allana Potash Corp. (CVE:AAA) (OTCQX:ALLRF) announced Monday a significant boost to its resource estimate for the company's Danakhil potash project in Ethiopia.
The updated NI 43-101 compliant report estimated total measured and indicated resources of 673 million tonnes, with an average grade of 18.65% potash, or KCI, (the composite grade of all four potash-bearing beds including sylvinite, upper and lower carnallite and kainitite).
Inferred mineral resources now stand at 596 million tonnes with an average grade of 19.96% KCI. Previously, the resource stood at just over 100 million tonnes in the inferred category only.
"We are very pleased with the dramatic increase in the potash resources at the company's Dallol Project in Ethiopia which greatly exceeds management's initial expectations," said president and CEO Farhad Abasov.
"The resource has grown from just over 100 Million tonnes of inferred mineral resources to 673 million tonnes of measured and indicated mineral resources and over 596 million tonnes of inferred mineral resources with good potential to expand on this resource."
Indeed, the new estimate is based on only 40% of Allana's licensed land area in the basin, and the company plans on continuing to drill throughout the year to expand the potash resource.
Allana said it is particularly encouraged by the signficant 673 million tonne amount of measured and indicated resources, which contain about 126 million tonnes of KCI.
The substantial shallow resource allows the company to proceed with its feasibility study this summer, with the need to consider a larger production facility after the initial production line.
The company, which is backed by World Bank member IFC and Liberty Metals and Mining, began its exploration on the project in April of last year, and has drilled a total of more than 12,000 metres, completing 2D seismic and downhole geophysical programs.
The updated report was based on 23 drill holes completed by Allana, as well as on historic drill holes completed by the Parsons in the 1950s and 1960s.