AWSR – Adding a loadout facility:
Ian Gilson, CFA
America West Resources (AWSR) has announced the lease purchase of the Wildcat loadout facility that is about eight miles from the Horizon mine. Coal will be transferred from the mine by truck to the facility where it will be sorted and loaded into trucks or railcars. This will reduce current shipping costs since the loadout is closer to the mine (eight miles) than the current railhead (25 miles) and increase the amount of coal that can be handled. There are about six mines in reasonably close proximity to the Horizon mine so shipping services can be offered to other mines. The railroads will deliver the coal to the Company's customers in the Western US in accordance with the contracts.
The coal is also screened and sorted by size. Lump coal is used for BBQs, it burns hotter and longer than wood. Stoker coal is used in stoves, coal heaters and furnaces. America West will sell pick-up loads for users and resellers. The coal is still high BTU steam coal but in different sizes. The lump and stoker coal will sell at much higher prices per pound than does steam coal.
The third quarter 10Q for 2010 was filed 11.22.10 and for 2009 on 11.25.09. We would expect the 10Q for the current year to be filed the week of 21 Nov. 2011.
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