SOURCE: American Power Corp

AMERICAN POWER CORP

November 09, 2011 09:00 ET

American Power Corp. Announces Positive Drilling Results at Pace Coal Project

DENVER, CO--(Marketwire - Nov 9, 2011) - American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to announce positive preliminary laboratory results of its exploration drilling program and the amendment of its prospecting permit to cover an additional nine drill locations corresponding to Phase III of its exploration drilling program at the Pace Coal Project in Judith Basin County, Montana.

Preliminary Laboratory Results

Preliminary laboratory results for the five core samples of Phase I were received and showed a high energy content with a range of 11,462 and 18,224 BTU measured on a dry and ash free basis (DAF). Sulfur content ranged from 2.0% to 3.7% (DAF) while ash content ranged from 30.6% to 51.9% (DAF).

American Power has instructed Standard Laboratories, Inc. in Casper, Wyoming to prepare a washability study, including float/sink analysis to be performed on the coal cores, according to ASTM standards. The washability study will determine the amount of ash and sulfur content that could be reduced from the coal seam in order to improve its quality.

The Company's technical team is putting together a second set of core samples obtained from Phase II and will ship them to Standard Laboratories for analysis.

Update on Exploration Drilling Program

As of November 3, 2011, American Power had completed a total of 11,599 feet of drilling for Phases I and II of its exploration program. With regard to Phase II, the Company has completed 4,944 feet of drilling on 6 out of 8 drill locations. The Company expects Phase II to be completed imminently and will proceed with Phase III of the exploration program, weather conditions permitting.

Commenting on the positive results, Al Valencia, CEO, said, "We are very pleased that the laboratory results have corroborated the high BTU results obtained by Mobil Oil Corp in 1979. Given these results, our board of directors has decided to give green light to the immediate start of Phase III of our coal exploration program." Mr. Valencia added, "Drilling efforts for Phase III will be concentrated in the eastern area of the property, where our team has identified the most promising results to date, both in terms of coal thickness and energy content."

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.

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 www.americanpowerco.com.

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.

Contact Information

  • Investor Relations Information:
    American Power Corp.
    Toll Free: 1-800-537-1110
    E-mail: Email Contact