American Power updates development of massive Pace Coal Project in Montana

Source: American Power Corp. 

American Power Corp. (OTCBB:TGMP) is pleased to provide additional information on its Pace Coal Project in Judith Basin County, Montana

Up until 1921, a subsidiary of the Great Northern Railway Co. mined in excess of 1.3 million tons of coal from the Lehigh mine located at the heart of American Power's Pace Coal Project. At that time, the mined coal was transported by railway to other parts of America. American Power now plans to carry out confirmatory exploration work with the goal of re-establishing production on the property, and deliver coal to power plants and/or coal gasification projects over the established railway network. 

"The Pace Coal Project already has substantial infrastructure in place," said Al Valencia, CEO of American Power, "including a Federal highway, electrical transmission lines, and the BNSF railway running through our property. Having access to an established railway transport solution like this is vital to economic coal production and delivery, and we intend to take all steps necessary to develop the Pace Coal Project as needed on our end so we can commence operations as soon as practicable." 

In November 2009, Warren Buffett's Berkshire Hathaway made a $34 billion investment in acquiring the Burlington Northern Santa Fe Railway (BNSF), their biggest investment to date. Many analysts have said this acquisition is a huge bet on the future of coal in America. Coal hauled by the BNSF powers one in ten homes in the United States. According to BNSF figures, over 90% of that coal is from the Powder River Basin in Wyoming and Montana. 

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.), and in several independent studies, range from 172 million up to 410+ million tons of high volatile bituminous B coal. 

For the most up to date and in-depth information on the Coal Energy market visit PennEnergy's comprehensive Research area to access industry focused Reports.

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