DENVER--(EON: Enhanced Online News)--Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the “Company”) previously announced that it has received its Air Quality Control Permit (“Air Permit”) for the construction and operation of a 2.2 million ton per annum underground potash mine and surface processing facilities from the Arizona Department of Environmental Quality (“ADEQ”).
The Company comments:
What is the significance of the Air Permit?
For a mine of this type, this is one of the most difficult permits to obtain for a project of our magnitude. To our knowledge, we stand alone amongst US greenfield Potash projects by obtaining this Air Permit.
How does this differentiate PGRX from other Potash miners?
On a global basis, in our opinion, this puts our Holbrook project at the forefront of greenfield mines to come into production.
How did this process compare to a federal process?
In Arizona, the EPA has delegated its authority to ADEQ with respect to minor source air permits such as this one. Given the design of the project and a commitment to reduced emissions, this allowed us to save a significant amount of time over a typical permitting process.
Where does this position the Company from here?
As is typical for most mining companies, major permitting is always seen as a major cost and schedule driver. In our view this removes much of the permitting risk as this permit is often seen to complicate other projects’ developments.
What other permits are on the horizon?
The other major permits still necessary are (i) the Aquifer Protection Permit and (ii) the longterm mineral lease with the Arizona State Land Department.
As a Summary from the prior announcement, the Air Permit is for the emissions from a 2.2 million ton per annum, two train processing plant and related mine production as contemplated by the Company’s Preliminary Economic Assessment released in December 2011. Prospect Global is continuing to evaluate building only one of the two processing trains and related mine output with correspondingly reduced emissions as analyzed in the Company’s Pre-Feasibility Study.
The Company is on track to finish its infill drilling program over the next two weeks and release an updated 43-101 resource report by the end of 2013.
Regarding Forward-Looking Statements
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 Prospect Global’s potash resources, development of its potash resources and potash mining facility and the Pre-Feasibility Study. 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, 2013. 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 statements.
About Prospect Global Resources Inc.
Prospect Global Resources Inc. is a Denver-based company engaged in the exploration and development of a potash mine located in the Holbrook Basin of eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital Market under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed at the Company’s website, www.prospectgri.com.