Jan 042013

By Linda Kor
Prospect Global, the parent company of the American West Potash project in the Holbrook Basin, is con-tinuing to move forward with its drilling operation and announced on Dec. 18 that it has begun drilling for a third series of potash development wells in the basin. The preliminary results of the drilling indicate that the results will be consistent with those of the 2012 and 2011 drillings, showing low impurities. To date, the com-pany has drilled and cored 22 holes in its project holdings, which includes approximately 93,000 acres of ex-clusively state and private lease lands.
The high quality core samples will be used to enhance and validate the company’s operational assumptions as it prepares its definitive feasibility study, which is expected to be completed in mid-2013. Prospect Global will continue drilling phases through 2013.
With the release of the 2011 Potash Resource Assessment, Prospect Global Chief Executive Pat Avery said his company now envisions developing a facility that would process at least two million finished tons of pot-ash per year, with the potential for two-and-a-half million to three million finished tons for at least the next 40 years.
The company has also announced the appointment of Damon G. Barber as chief financial officer of the company. Barber has more than 20 years’ experience in natural resources finance and operations, and is the former chief executive officer of CST Mining Group Limited, a Hong Kong-based mining company. Prior to joining CST, Barber was a managing director at Deutsche Bank, and served as the head of Deutsche Bank’s metals and mining investment banking practice in Asia-Pacific.
“Damon is that rare individual who has proven himself in every facet of our industry,” said Avery. “His title is CFO, but we expect Damon to contribute in every aspect of Prospect Global’s development,” he added.
Prospect Global officials anticipate that the bankable feasibility study for the Holbrook project will in-crease resources and optimize the mine plan. The current timetable calls for the American West site to be in production by late 2015 or early 2016.