Topic: How To Invest

Pat: What are your thoughts on Allana Potash?

Article Excerpt

Allana Potash, $0.63, symbol AAA on Toronto (Shares outstanding: 96.5 million; Market cap: $60.8 million; www.allanapotash.com), is focused on developing its Dallol potash property in Ethiopia. This property, which is located in the Danakhil Depression area, could hold as much as 105 million tonnes of potash. Allana’s property has a history of potash exploration and mining. There was small-scale potash production at Dallol in the 1920s. The property was extensively explored in the 1960s, with nearly 300 holes. Allana is now conducting exploration drilling, and continues to intersect strong potash mineralization. Allana has a good chance of finding enough potash to support a mine. As well, the project is only about 100 kilometres from the seaport of Mersa Fatma, Eritrea, on the Red Sea coast. It is also 600 kilometres by road from the deep water port of Djibouti. However, the border with Eritrea has been closed since the Ethiopia and Eritrea went to war over a decade ago, and the region’s…