DENVER, CO--(Marketwire - Sep 21, 2012) - American Power Corp. (
"We are extremely pleased with the results of the study, which demonstrate the relevance of the Pace Coal project in Judith Basin County, Montana," commented Al Valencia, CEO of American Power. "Delineating coal reserves for the Pace Coal project is an important milestone for us. With total proven and probable reserves of 55.5 million tons and inferred resources of 20.4 million tons on the designated resource area controlled by the Company, the Pace Coal project is well positioned to become a substantial coal mining operation in the region," added Mr. Valencia.
In developing its study, Weir designated a large resource area that also included uncontrolled properties, mostly Federal and State coal lands. Weir developed its study around the central core of American Power's properties which involves less than 50% of the approximately 29,000 acres of coal which the Company holds.
The study states that "further drilling on the Pace Property has the potential to expand reserve and resource area to the northeast, east and southeast of the designated reserve and resource study area," and that "coal reserves and resources underlie the majority of the property."
The Company expects to release the results of the Mine Feasibility Study for the Pace Coal project in due course.
Summary of the Reserve and Resource Study
Weir estimated Proven and Probable Reserves in the order of 55.5 million recoverable tons and Inferred Resources of 20.4 million recoverable tons within the designated area controlled by the Company. The estimated coal reserves and resources are summarized as follows:
|Recoverable Tons (000)|
Geological data obtained to date shows that the coal seam thickness reaches up to 14.5 feet and averages 8.47 feet on the property. Thirty-eight drill holes were used to model the coal seam; 20 holes were drilled by Mobil in 1979 and 18 holes were drilled by American Power in 2011.
Other key results of the RS include:
- Raw coal quality analysis was performed on the coal cores for nine holes drilled by the Company in 2011. The average raw coal quality (dry basis) is summarized as follows:
|Ash (%)||Volatile Matter (%)||Fixed Carbon (%)||Sulfur (%)||Btu/lb||MAF Btu/lb|
- Complete coal seam cores were recovered and a float/sink analysis was performed at three specific gravities for four of the holes drilled by the Company in 2011. The average coal quality at 1.70 specific gravity float clean coal analysis is summarized as follows:
|1.70 Specific Gravity Float - Dry Basis|
|Yield (%)||Ash (%)||Sulfur (%)||Btu/lb|
Additional drilling and coal core analysis are required to better define the coal quality on the Pace Coal property. The reserve and resource estimates are based on encountering favorable mining conditions and do not account for any unforeseen adverse mining conditions.
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 the Pace Coal Project, a 29,000-acre coal project located in Judith Basin County, Montana.
American Power trades on the OTCBB under ticker symbol AMPW. Shareholders are invited to contact investor relations toll free at (800) 537-1110 for further information or visit the Company's website at www.americanpowerco.com.
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. 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.
* Resources are not recognized by the SEC, but are included in this document to identify tonnage. Further exploration and verification is required to place the resources in the Proven and Probable reserve classifications.
American Power Corp.
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