Allana Potash announced last week that the mineral resource on its Denakhil potash project increased by 90pc as compared to the April 2012 estimate. The measured and indicated mineral resource estimate totals 2,481.3 million tonnes with an average grade of 17.9pc potassium chloride (KCl), representing approximately 444 million tonnes of KCl.

This, according to the press release posted on the official website of the Company, is more than 90pc increase over the April 2012 measured and indicated mineral resource estimate of 1,297 million tonnes at an average grade 19.3pc KCl.

This comes two months after the Company received approval for its Environmental, Social, and Health Impact Assessment (ESHIA) from the Ethiopian Environmental Protection Authority (EPA) and Ministry of Mines (MoM). The Company controls 160SqKm of the Danakhil Depression at Dallol, in Afar Regional State.

In addition to the strong increase in estimated measured and indicated mineral resources, the inferred mineral resource estimate for all four potash units is an additional 1.1 million tonnes grading 16pc KCl. This represents a 94pc increase in the inferred mineral resource estimate as well as a 67pc increase in contained KCl to approximately 183 million tonnes, according to the press release.