Expanding Manganese Resource at Artillery Peak Grows by 45%
Added October 6th, 2010 – Vancouver, British Columbia
October 6, 2010 – Vancouver, British Columbia
Mr. Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; Pink Sheets: AMYZF), is pleased to report that a new NI 43-101 compliant Resource Estimate, which incorporates the results of the 2010 drilling program, shows a substantial increase in the amount of manganese contained in the Artillery Peak Project. The 2010 drilling program included 53 reverse circulation drill holes totaling 4,526.3 meters (14,850 feet) on patented claims located on the northern third of the property.
N. Tribe & Associates Ltd. prepared the up-to-date NI 43-101 compliant Resource Estimate and the results are summarized below:
0.90% Mn Cut-off Grade 1.30% Mn Cut-off Grade
LAKE/MACGREGOR 23,608,696 3.03% 1.574 19,658,544 3.32% 1.438
MAGGIE 45,963,169 3.80% 3.853 37,843,101 4.33% 3.617
LOVE'S.HURLEY.PLANCHE 0 - 0 -
CHAPIN SOUTH/PRICE* 23,252,060 2.46% 1.259 23,252,060 2.46% 1.259
SHANNON 0 - 0 -
TOTAL 92,823,925 3.27% 6.686 80,753,705 3.55% 6.315
LAKE MACGREGOR 27,278,504 3.43% 2.063 26,726,471 3.74% 2.207
MAGGIE 24,893,512 3.58% 1.966 22,672,600 4.29% 2.144
LOVE'S.HURLEY.PLANCHE* 7,104,986 4.74% 0.743 7,104,986 4.74% 0.743
CHAPIN SOUTH/PRICE 42,762,581 3.88% 3.654 22,447,085 4.26% 2.110
SHANNON 5,171,491 4.00% 0.456 5,171,491 4.00% 0.456
TOTAL 107,211,073 3.76% 8.881 84,122,632 4.13% 7.660
* All contained assays above cut-off grade.
Assays were performed by ALS Chemex in Sparks, Nevada.
The new NI 43-101 Resource Estimate will be filed with the regulators on SEDAR within 45 days of this news release.
The previous NI 43-101 compliant resource estimate at a 0.9% cut-off grade is summarized below:
Copy of NI 43-101 Resource Study Estimate
IN BILLIONS (10 9)
Mr. Reaugh states: “I am extremely pleased with the results. Not only has the amount of contained Mn metal increased by about 45%, but also the amount of the resource in the Indicated Category has increased by more than six times from the previous estimate. These results support our belief in the character and quality of the Artillery Peak Deposit, and there is a lot more ground to explore to expand the resource further.”
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; the current world price for Electrolytic Manganese Metal is about $1.43/lb. Manganese resources are declining in China.
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, PEng, a qualified person pursuant to National Instrument 43-101.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer