Artillery Peak Manganese Project Review and Update
Added April 6th, 2010 – Vancouver, British Columbia
Larry W. Reaugh, President and Cheif Executive Officer of American Manganese Inc., (TSX.V: AMY; Pink Sheets: AMYZF) (“American Manganese” or the “Company”) is pleased to report and review the Artillery Peak Arizona Manganese Project over the past year as follows:
The Company had initially acquired by option 90 unpatented mineral claims hosting several known manganese occurrences in 2007. The company has subsequently increased its land holdings to 116 patented and 254 unpatented claims covering an area of approximately 3200 hectares (7,900 acres). In early 2008 a 17 hole diamond drill program entailing 3,050 meters (9,995 feet) was completed resulting in an initial NI 43-101 compliant resource of:
Tonnes %Mn Mn Pounds
Indicated 10,865,929 4.46 1,068,307,976
The Artillery Peak camp has been reported by the US Bureau of Mines to contain the largest low grade deposit of manganese in the South Western United States.
April 29, 2009
Utilizing 116 historical diamond drill holes, underground and surface sampling the Company completed a NI 43-101 Resource Study at a 0.91% Mn cut-off as follows:
NI 43-101 Resource Study Estimate
Tonnes %Mn Mn Pounds
Indicated 10,865,929 4.46 1,068,307,976
Inferred 96,933,724 4.52 9,661,091,721
The manganese resource remains open in all directions.
August 5, 2009
Dr. Anthony E. Santelli II was appointed to the Board of Directors. Dr. Santelli is the Founder and Portfolio Manager of AES Capital, a hedge fund management company.
August 6, 2009
The Company completed a NI 43-101 Preliminary Economic Assessment Study which indicates the Artillery Peak Manganese Project would potentially become the lowest cost producer of electrolytic manganese (“EMM”).
The NI-43-101 Economic Evaluation Study on a pretax basis is as follows:
NI 43-101 Economic Evaluation Assessment Study Results
Production of 50,000 tonnes of metal per year (110 million pounds)
Plant Size 3500 TPD (Can easily be expanded to meet increased demand)
Resource 21,240,000 T’s @ 4.48% (20% of Total Resource)
Mine Life 17 years (2.5/1 strip ratio)
Recovery 90%
Capital Cost $90 million (repaid at base case model $1.10/lb) 1.73 years
Base Case NPV @ 8% discount, $388 million, IRR 60%
Current Manganese Metal Price $1.33/lb
Cash Operating Cost $0.44/lb Manganese
Break even price, including capital repayment $0.63/lb Manganese
See press release dated November 24, 2009 for description of the low cost processing method for producing electrolytic manganese.
November 5, 2009 (Lonnie Niobium, BC Property)
The Company completed 5 diamond drill holes entailing 475 meters on the new Lonnie North Carbonatite. Results contained no significant assays. The known occurrences of niobium and rare earths remain untested. A follow up drilling program to test the original Lonnie lense is planned for this year.
January 19, 2010
The Company’s name was changed from Rocher Deboule Minerals Corp. to American Manganese Inc., Ticker Symbol: TSX.V: AMY
February 25, 2010
The appointment of Mr. Michael MacLeod, P.Eng, to the position of Chief Operating Officer. Mr. MacLeod will be responsible for all project development, operational activities, assembling and leading an experienced team of professionals for furthering the Artillery Peak Manganese Project.
March 18, 2010
The Company commenced a reverse circulation drill program entailing 15,885 meters (52,000 ft) of drilling in 191 holes to increase the integrity of the current resources from indicated and inferred to measured and indicated, and increase the size of the known NI 43-101 resources. To date 12 holes have been completed, with 5 holes submitted for assay on March 25, 2010.
On going metallurgical testing by Kemetco Research labs to streamline the process as well as lay the foundation for developing a process stream is ongoing.
About Manganese
- China controls electrolytic manganese (EMM) supplying and producing 97.44% of the worlds needs (2.6 billion pounds per year).
- There is no substitution for manganese in steel (total manganese market greater than 30 billion pounds per year, fourth largest traded metal).
- The most critical metal at risk to supply and restriction in the United States. There is no US production.
- EMM’s greatest uses are upgrading specialty steel 47%, manufacture of aluminum 32% and electronics 14%.
- China has a 20% export duty on EMM and the US has a 14% import duty, world price is $1.33/lb and US price is $1.68/lb.
- Manganese resources are declining in China.
- 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 Norman L. Tribe, 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
