American Power Corp. (OTCBB: AMPW) said April 30 that it has commissioned the preparation of a reserve and mine feasibility study for the Pace Coal Project in Montana.
The study will be done by consultant Weir International. The study is to determine the scope of the project based on all available exploration data to date, with Weir to also provide recommendations for additional exploration drilling. The study will include the preparation of an electronic drill hole database for the property, verification of seam correlations, preparation of a seam reserve map and definition of the mineable reserves and resources.
The mine feasibility study will include a mine plan suitable to geology and production requirements and projections for production capacity, productivity, staffing levels, equipment and facilities, capital expenditures and operating costs. The company said it plans to resume its drilling program later this year and incorporate the additional drilling results into the reserve and mine feasibility study.
“We are very excited to inform our shareholders that we are working on a reserve and mine feasibility study with exploration data obtained during the first two phases of our drilling program and data from previous exploration work carried out by Mobil Oil Co.,” said Al Valencia, CEO of American Power.
American Power is a publicly-traded energy company based in Denver. 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, Mont., to support domestic electricity generation. The estimated resources in place, based on exploration work conducted by Mobil Oil in several independent studies, range from 172 million up to over 410 million tons of high volatility bituminous B coal.