Allana Potash Corp. shares rose 10% Monday after the company reported strong drilling results.
Allana, which is focused on the exploration and development of the Danakil Depression in Ethiopia, drilled to test the southern unexplored limits of its concessions.
The drill hole intersected a 1 metre zone of 44.5% potassium chloride (KCI), which would represent the highest concentration of potash Allana has struck to date, Dundee Capital Markets analyst Richard Kelertas told clients.
"While not particularly thick, the shallowness of the resource (at less than 120m deep) would be extremely suitable for open pit mining, which the company is considering pursuing and on which we have based our NAV," he said.
The analyst's net asset value is $2.83 and he has a "buy" rating and $2.50 price target on Allana shares.
He said these excellent res
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