Allana Potash Corp. on Thursday announced that it is to conduct a feasibility study on its potash exploration project in the Afar regional state. In a statement issued on Thursday the company said that it had awarded a feasibility study contract to a company called ERCOSPLAN for its Ethiopian Potash Project. ERCOSPLAN has been involved in Allana's Ethiopian Potash project since 2008. Allana said ERCOSPLAN is a widely recognized world leader in potash exploration techniques and potash mining and processing, adding that ERCOSPLAN's clients include some of the largest potash exploration companies and potash producers in the world.

Farhad Abasov, Allana's president and CEO, stated: "Allana is very pleased to engage ERCOSPLAN to complete a feasibility study for our potash project. As a world leader in potash mining, processing and related operations, ERCOSPLAN will play a key role in advancing this project. The study will begin immediately with additional equipment being mobilized to the site and the expansion of the camp is under way.”

With relatively shallow potash deposit, Allana will consider open-pit mining method along with solution mining. The company expects that economic parameters of open-pit and solution mining methods will have been examined so that the management can determine what is the optimal mining method at the initial production stage. Once the mining method is determined, the rest of the feasibility study will focus on the details based on that method.

“This is an important milestone for Allana since this timely start of the feasibility study will allow us to stay on track with our development plans. We look forward to working with ERCOSPLAN as we move forward to production and continue advancing our strategic talks with large fertilizer organizations," the CEO said.

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 will investigate the potential to extract potash via open-pit mining as well as solution mining and solar evaporation, to produce different products. The feasibility study is estimated to be completed in the second half of 2012 and will begin immediately.

“We are delighted with the exploration work Allana has undertaken on the potash project,” Gebreigzabher Mekonnen, head of the minerals operation head with the Ethiopian Ministry of Mines, told The Reporter.

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. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, PLC, a subsidiary of Liberty Mutual Group.

Reporter