Prospect Global Provides Update on Bankable Feasibility Progress
Phase 3 drilling program commences; preliminary results consistent with
earlier tests; detailed geological profile emerging; drilling to continue in
phases in 2013
DENVER, Dec. 13, 2012
DENVER, Dec. 13, 2012 /PRNewswire/ -- Prospect Global Resources, Inc. (NASDAQ:
PGRX)("Prospect Global") today announced an update on the third phase of
drilling in pursuit of its bankable feasibility study.
Prospect Global has begun drilling for a third series of potash development
wells in the Holbrook Basin, in Apache County, Arizona. Preliminary results
are very consistent with those of 2011 and earlier 2012, indicating quality
potash zones with low impurities. Prospect Global refined its disciplined
potash coring procedures during its Phase 1 and Phase 2 drilling in 2011 and
the first half of 2012, respectively. These wells are designed to increase
confidence in "measured and indicated" resources, which can ultimately be
converted to "proven and probable" reserves. Wells are drilled in dual
completion – that is, the upper and lower parts of the well are encased with
steel to ensure hole control but more importantly to eliminate the chance of
contamination of the potash cores. The Company has drilled and cored 22 holes.
The Company extracted high-quality core samples, for which the assay analyses
show a flat-lying potash resource with minimal faulting. These core samples
allow the Company to define the geological profile of the potash and outline
its lateral continuity. Core samples are critical to optimizing the mine plan
with rock mechanics testing and maximizing the processing-plant recovery with
metallurgical testing. The ongoing acquisition of data will enhance and
validate the Company's operational assumptions as it prepares its definitive
PGRX was able to capitalize on existing drill-hole data from historical
exploration wells drilled in the 1960s and 1970s. This data was used to
calculate the mineral resource and to identify new drill-hole locations. The
Phase 1 and Phase 2 drill programs confirmed and enhanced these historical
results. The Phase 3 drill program is predominantly infill drill holes
focused on converting the Company's "inferred" resource to the
higher-confidence classifications of "measured and indicated" resource.
Drilling will continue in phases during 2013.
With the exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding current and future classification of our potash
resources and development of our potash mining facility. Factors that could
cause actual results to differ materially from projections or estimates
include, among others, potash prices, economic and market conditions, and the
additional risks described in Prospect Global's filings with the SEC,
including Prospect Global's Annual Report on Form 10-K for the year ended
March 31, 2012. Most of these factors are beyond Prospect Global's ability to
predict or control. The forward looking statements are made as of the date
hereof and, except as required under applicable securities legislation,
Prospect Global does not assume any obligation to update any forward-looking
statements. Readers are cautioned not to put undue reliance on forward-looking
About Prospect Global Resources, Inc. [PGRX]:
Prospect Global Resources, Inc. is a Denver-based company engaged in the
exploration and development of a large, high-quality potash deposit located in
the Holbrook Basin of eastern Arizona.
SOURCE Prospect Global Resources, Inc.
Contact: Thomas Mulligan, Sitrick And Company, +1-212-573-6100
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