DENVER, CO — (Marketwire) — 08/02/11 — American Power Corp. (OTCBB: AMPW) (“American Power” or “the Company”) is pleased to announce the approval of the prospecting permit for its Pace Coal Project located in Judith Basin County, Montana.
On July 29, 2011, the Coal and Uranium Program of the Montana Department of Environmental Quality (“Montana DEQ”) approved the Prospecting Permit No. X2011335, which authorizes the Company to carry out the first phase of its planned drilling program.
“We are very excited with the approval of our exploration permit. Our team has been working diligently throughout the year to reach this milestone and we can now say that the start of drilling operations is a few weeks away,” commented Mr. Al Valencia, CEO of American Power. “The permit allows us to begin our prospecting program on 13 drill sites throughout the Pace Coal project area. Additional drilling sites in subsequent phases would be added to our permit by application to the Montana DEQ, as needed for coal resource assessment and future mine-plan development,” added Mr. Valencia.
The renewal date of the prospecting permit No. X2011335 is July 29, 2012. For more information on American Power–s prospecting permit application, please refer to our press release dated July 26, 2011.
American Power–s planned exploration drilling program consists of 61 drilling sites and will involve a total of 53,875 feet of drilling in three different phases. The first phase of the program consists of a total of 13 drilling locations, while the second and third phases consist of a total of 9 and 39 drilling locations, respectively. The Company expects to apply for an amendment to its approved prospecting permit to cover additional locations on subsequent drilling phases.
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. American Power–s exploration program will provide information relative to coal seam thickness, depth of cover, expected top and bottom conditions and coal quality.
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.
In April 2010, American Power agreed to acquire the coal and mineral rights on roughly 29,000 acres in Judith Basin County, Montana, which make up the Pace Coal Project. 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 volatility bituminous B coal.
American Power is a member of the Montana Mining Association. American Power trades on the NASD OTC BB 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 .
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
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.
American Power Corp.
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