TORONTO, ONTARIO -- (Marketwired) -- 06/26/13 -- Allana Potash Corp. (TSX: AAA)(OTCQX: ALLRF)("Allana" or the "Company") announces that this press release corrects and replaces the press release that was sent today at 7:00 a.m. ET which was entitled "Allana Announces Updated Mineral Resource Estimate: Measured+Indicated Mineral Resources Increase by Over 90% to 2.4 Billion tonnes; Inferred Resources Increase by 94%". The news release incorrectly stated the density used for the Kainitite resource resulting in the non-material changes set out in the title to this news release and below (as underligned).
The measured and indicated mineral resource estimate totals 2,446.4 Million tonnes with an average grade of 17.9 % KCl, representing approximately 438 Million tonnes of KCl. This is more than an 85% increase over the April 2012 measured and indicated mineral resource estimate of 1,297 Million tonnes at an average grade 19.3% KCl, and close to a doubling of the KCl tonnes in these resource categories (see news release dated April 30, 2012) (the "April 2012 report"). In addition to the strong increase in estimated measured and indicated mineral resources, the inferred mineral resource estimate for all four potash units is an additional 1,117,400,000 tonnes grading 15.9% KCl. This represents a 90% increase in the inferred mineral resource estimate as well as a 63% increase in contained KCl to approximately 178 Million tonnes. A summary of the mineral resource estimates is presented in Tables 1 and 2 below.
The increase in estimated measured and indicated mineral resources was dominated by increases of over 80% in both categories with the revised measured mineral resource estimate totaling approximately 1,024. Million tonnes containing 182 Million tonnes of KCl versus 567.82 Million tonnes of measured mineral resource and approximately 107.1 Million tonnes of KCl delineated in the April 2012 report.
In particular, the measured and indicated Sylvinite mineral resource estimate increased over 90% to approximately 327,400,000 tonnes with an average grade of 28.3 % KCl. This mineral resource estimate is consistent with the measured and indicated Sylvinite mineral resource estimate utilized in Allana's recently released Feasibility Study (see press release date Feb. 2, 2013 and technical report filed on SEDAR on March 19, 2013) and forms the basis for the estimate of Sylvinite reserves.
Farhad Abasov, President and CEO, commented: "We are excited to see the large increase in total mineral resources on the project and the significant conversion of inferred mineral resources into measured and indicated mineral resource categories. Potash resources continue to expand with our exploration activities which are ongoing on the Nova license. We are encouraged that significant additional mineralization of Carnallite and Kainitite have been delineated and will initiate further studies on these resource estimates. Exploration drilling continues on the Nova license with three holes remaining in this program, after which a revised mineral resource estimate is scheduled for completion."
The mineral resource estimate is based on drilling conducted by Allana in 2010-2012 (60 holes), on the core Allana license, 28 drill holes completed on the Nova license and the historic drill holes completed by the Ralph M. Parsons Company (Parsons) in the 1950s and 1960s. The April 2012 report included 45 Allana drill holes and the Nova license was acquired in November 2012 therefore data from additional drilling on the Allana license, as well as data from the Nova license are now included in this mineral resource estimate update. The top of the potash sequence is identified by the Sylvinite Member, followed by the Upper Carnallitite Member (UC), the Bischofitite Member, the Lower Carnallitite Member (LC) and the Kainitite Member.
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