Artillery Peak Environmental and Permitting Contract Awarded
Added May 24th, 2011 – Vancouver, British Columbia
Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; Pink Sheets: AMYZF), is pleased to announce that the Tucson, Arizona office of Tetra Tech, Inc. has been awarded the contract to provide environmental and regulatory permitting consulting services to advance the Artillery Peak Manganese Project. “I am delighted to add such a well respected contractor to the project development team” said Mr. Reaugh. He goes on to say: “We are also anticipating a seamless interface with the Vancouver office of Wardrop, a Tetra Tech Company (Wardrop), to achieve a fully integrated preliminary feasibility study which can be used as the mine plan of operations for regulatory permitting purposes. We believe that the overall effect will be to streamline the project engineering and development process, thereby expediting the preparation and submission of the documentation required for regulatory review.” As announced previously, the preliminary feasibility study is scheduled for completion toward the end of the 3rd quarter 2011; while the regulatory approvals process is forecast to take between 18 and 24 months.
About Tetra Tech, Inc.
Tetra Tech is a leading provider of consulting, engineering, program management, construction and technical services. The company has more than 12,000 employees worldwide and capabilities that span the entire project life cycle. The company has more than 330 offices worldwide, including locations in Arizona and Nevada in close proximity to the Artillery Peak project.
Wardrop is a multi-disciplined consulting and engineering firm that provides innovative solutions for the natural resource management, energy and infrastructure markets globally. Wardrop has been servicing the mining industry for more than 40 years and has established a reputation for successfully executing NI 43-101 compliant feasibility studies that meet the scrutiny of the international financing community.
China controls electrolytic manganese production (EMM) supplying and producing 97.44% of the world’s needs (2.6 billion pounds per year).
There is no substitute for manganese in steel (total manganese market greater than 30 billion pounds per year, fourth largest traded metal).
Manganese is the most critical metal at risk to supply and restriction in the United States as there is no US production. EMM’s greatest uses are the upgrading of specialty steel (47%), and the manufacture of aluminum alloys (32%) and electronics (14%).
China has a 20% export duty on EMM and the US has a 14% import duty; (US Price $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.52/lb. Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.
The overall manganese market grew at 8% per year to 30 billion pounds up to 2008. EMM market grew at 26% per year from 2003 – 2008 to 2.6 billion pounds per year.
About American Manganese Inc:
American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming the lowest cost producer of electrolytic manganese from its Arizona Manganese Project.
This release has been reviewed by Mr. John W. Fisher, P. Eng, a qualified person pursuant to National Instrument 43-101.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer