A constant 40 degrees Celsius, 120 meters below sea level; Allana Potash’s ($AAA:CA) Ethiopian project is a study in extremes. On October 9th the company announced that it had received its Mining Licence from the Ethiopian Ministry of Mines. As Farhad Abasov, Allana’s CEO explained from London, “this opens the door to construction”.
With a measured and indicated potash resource of 2,446 million tons, Allana’s prospects are deeply attractive. And with the grant of the licence, Allana can get on with the task of planning, financing and building its mine.
At the same time, Allana is expanding its resource with the October 28, 2013 announcement of drill results from its Nova license adjacent to the Allana property. Drill results indicate the extension of Sylvinite and Kainitite mineralization south and west of the original Allana license.
“We’re a small company” said Abasov, “We are currently in our financing and pre-construction phases. After our financing (debt and equity) is complete, we have approximately 18-24 months to put our team together and then build and start up our solution mine. The securing of our license was a pre-condition to financing, so this phase is now proceeding well”