Toronto — Allana Potash Corp. has filed a National Instrument 43-101 technical report dated Nov. 28, 2011, on SEDAR. The technical report is with respect to Allana’s preliminary economic assessment (PEA) completed on the company’s Danakhil potash deposit, located in the Afar state, Ethiopia, the results of which were announced in November. Highlights include: after-tax net present value at 12 percent of US$1.85 billion; after-tax internal rate of return of 36.8 percent; total development capital expenditures, including mining, processing facilities, port and logistics infrastructure (capex) of US$796 million; total operating expenditures (opex) on a per-mt basis (including production, transportation/handling, port, loading costs) FOB on the vessel of US$90.54. The PEA is based on annual production of 1 million mt/y of MOP using solution mining; potential to expand production to 2 million mt/y of MOP; SOP production potential to be examined during the continuing feasibility study. Allana notes that the PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
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