American Power Corp. Pace Coal Project Update
Dec. 7, 2010 (Marketwire) --
DENVER, CO -- (Marketwire) -- 12/07/10 -- American Power Corp. (OTCBB: AMPW); "American Power" or "the Company") is pleased to provide an update on its high potential Pace Coal Project located in Judith Basin County, Montana.
The prospecting permit process to begin drilling operations at the Pace Coal Project continues. Mission Engineering, Inc. of Billings, Montana, was retained to prepare and submit a coal prospecting permit application to the Montana Department of Environmental Quality. American Power's planned drilling program consists of 61 drilling locations and would involve a total of 52,740 feet of drilling. The program's aim is to place a significant portion of the coal holdings of the Pace Coal Project in the proven and probable reserve classification, with an ultimate goal of establishing sufficient resources to support a greater than 20 year operational mine life.
"We are very excited with the progress of operations to date and with the general state of the coal market. Walter Energy's recent acquisition of Western Coal for $3.2 billion and Rio Tinto's recent offer of $3.5 billion for African coal producer Riversdale Mining, show how strong the coal market is at the moment," commented Al Valencia, Chief Executive Officer of American Power. "We believe the company is well positioned to take advantage of this increased M&A market activity," added Mr. Valencia.
About the Pace Coal Property
In April 2010, American Power Corp. acquired roughly 29,000 acres, which make up the Pace Coal Project. In 1979 Mobil Oil Co. (now ExxonMobil) drilled 30 holes over 14,000 of the project's acreage, and delivered 45 samples which were later sent to an independent laboratory for analysis. It was subsequently determined that both the quality and the quantity of coal on the Pace acreage was high and significant, respectively. Several independent reports were commissioned based on the development work undertaken by Mobil Oil, determining there could be in excess of 410 million tons of high volatility bituminous coal potential on the Pace acreage.
About American Power Corp.
American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large-scale coal projects in close proximity to national transportation links. American Power envisions developing its large coal resources to support electricity generation.
American Power is a member of the Montana Mining Association, and holds approximately 29,000 acres in Judith Basin County, Montana. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), in several independent studies, range from 172 million up to 410+ million tons of high volatile bituminous B coal.
American Power Corp. trades on the NASD OTC BB under ticker symbol AMPW. Shareholders are invited to contact corporate communications toll free at (800) 537-1110 for further information or visit the Company's website at www.americanpowerco.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
American Power Corp.
Al Valencia, CEO
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that American Power Corp.'s 29,000-acre leases in Judith Basin County, Montana, have high volatile bituminous B coal in the range of 172 and 410+ million tons. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-QSB, annual reports on Form 10-KSB, and the Company's other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at www.sec.gov
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission ("SEC") permits mining companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines may prohibit us from including in filings with the SEC.
Investor Relations Information:
Toll Free: 1-800-537-1110
E-mail: Email Contact
Source: Marketwire (December 7, 2010 - 9:25 AM EST)
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