DENVER, Oct. 18, 2012 /PRNewswire/ -- Prospect Global Resources Inc. (NASDAQ: PGRX) announced that a new interim engineering report shows the Company to be on track to meet key targets within previous expectations as to capital and operating expenses, infrastructure, permitting, and site plan for its American West Potash project in Holbrook, AZ.
According to the report, a cost feasibility study by the international engineering firm of Tetra Tech Inc., key capital expense elements are in line with 2012 expectations, and operating expenses are comfortably within confidence levels set by the December 2011 preliminary economic assessment. The changes to capital expense and operating expense include more focus on potash recovery, reliability and optimization. Prospect Global believes that the bankable feasibility study in 2013 will increase resources and optimize the mine plan.
The interim report is another milestone on Prospect Global's path to demonstrate that the Holbrook Basin project, a promising potash field in the Holbrook Basin of eastern Arizona, will be globally competitive. Another important step, the bankable feasibility study, is scheduled for the first half of 2013, in line with Company expectations.
Patrick Avery, CEO of Prospect Global, commented: "This full interim report, focusing on capital and operating expenses, is a welcome confirmation of our progress. We are meeting key technical and operational milestones to build a world class project. We also have made great advances in our site plan, permitting, and infrastructure."So far, the Company has hit the following operational targets:
- Process design parameters and process flow diagrams have been set.
- Equipment lists have been prepared and are in final vendor selection.
- Detailed engineering has begun and drawings prepared.
- Conducted detailed mine planning with Vulcan software on the KR-2 bed.
- Completed 2012 drilling program on time and on budget.