Drill Results – Seven More Holes from Artillery Peak
Added July 5th, 2011 – Vancouver, British Columbia
Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc., (TSX.V: AMY; Pink Sheets: AMYZF) (“American Manganese” or the “Company”) is pleased to report the Company has received results for the following 7 drill holes from its 2011 Artillery Peak drilling program. The results for first 20 drill holes have been previously announced on June 7 and June 27, 2011.
The company initiated this drilling program on April 20, 2011 and was completed on June 17, 2011. It is being performed using reverse circulation drilling techniques as the mineralization is disseminated and uniform. A total of 10,607 meters (34,800 ft) was drilled in 86 drill holes.
Mr. Reaugh states that: “We continue to intersect large thicknesses of low grade manganese mineralization and are continuing to close information gaps within the patented claims along the northeast flank of Manganese Mesa. The mineralized intersections continue to demonstrate the expected lateral continuity over good widths, augmented by local higher grade intersections. The extensive mineralization at Artillery Peak occurs within sedimentary beds taking the form of paleo-alluvial fans spreading out down slope from a number of source vents.”
The significant mineralized intersections for the following 7 drill holes are presented in the table below.
2011 DRILL PROGRAM
Assays were performed by ALS Chemex in Sparks, Nevada. Further results will be reported as they are received.
The current NI 43-101 compliant resource estimate of the Artillery Peak Manganese deposit includes an Indicated resource of about 92.8 million tonnes grading 3.27% Mn (6.7 billion lbs or 3.04 million tonnes of contained Mn), and an Inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs or 4.04 million tonnes of contained Mn).
The Company is capable of producing Electrolytic Manganese Metal (EMM) on the cathode or Electrolytic Manganese Dioxide (EMD) on the anode. Currently the Company is investigating the production of EMD to make the Lithiated manganese dioxide (LMD) for the battery industries.
China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (Production of 3 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 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