Artillery Peak Deposit


Property Overview

The properties in Mohave County, Arizona (purchased in 2007) encompass historical open-pit and underground mines that produced manganese from 1928 to 1955 for delivery to various steel mills and U.S. government strategic materials stockpiles. In 2008 American Manganese Inc. completed the assembly of all target properties in the Artillery Peak manganese district, and drilling and metallurgical testing programs were executed.

Patented Claims:   There are 79 patented claims which comprise approximately; 1,499 acres.

Unpatented Claims:  There are 356 Unpatented Mining Claims which comprise approx.: 7,120 acres

12 square miles that include past-producing mines:

  • McGregor Pit, McGregor Group;
  • Black Crow Mine + Claim Group;
  • Love Mine & Prospects;
  • The Black Warrior Mine;
  • Hurley Mine & Claim Group;
  • The Plancha Claim Group;
  • (parts of) Rudy Claim Group;
  • The Javelina Group (In Section 17 & 18, T11N, R13W);
  • Mesa No. 5 and Mesa No. 27

Property History

In 1929 investigations of the Artillery Peak manganese deposit in western Arizona were undertaken by private engineers. Estimates for the main part of the district were considerable ranging from 14 to 60 million tons of resource at that time (USGS).

In 1934 The Bureau of Mines tested the deposit and reported it might be amenable to some form of hydrometallurgical treatment.

In 1938 the US Geological Survey undertook in conjunction with M.A. Hanna Co. a detailed study of the deposit.

Thereafter in 1941 the Bureau of Mines undertook to mine the Maggie Canyon portion of Artillery Peak, to obtain material for their metallurgical test plant in Boulder City, Nevada.(Bulletin 936-R)

In 1946 the Bureau of Mines produced an extensive report (Bulletin 463) on the Boulder City test plant. The Bureau reported success in producing manganese metal through electrolysis. This is the pioneering work on the process used
today.

During WW 2 mining took place on the various properties making up the Artillery Peak camp.

In the post war period the Artillery Peak manganese deposit was mined for a part of the US Government’s strategic stockpile; the stockpiling ceased 1955.

In 1958 the USGS published “Manganese Deposits of Western Arizona”
(information circular # 7843) and placed the regional deposit at 175,000,000
tons grading 3.5 to 4% manganese.

In
1983 Jim Lake of Hazen Research completes his development work on the production of electrolytic metal. Key to the commercial production, through sulfurous acid leaching, is the successful elimination of the impurity
Dithionate. A highlight of this report is the successful removal of this impediment.

1988the US Bureau of Mines report # RI 9150 tested samples from several of the known manganese deposits in the US. The report concludes the samples form Artillery Peak, Arizona returned the highest recoveries in the shortest period of time when subjected to the sulfurous acid leaching process.

In 2007 the Company purchased 90 unpatented lode claims and began its assembly of the patented claims.

In December 2007 a 5000 meter diamond drilling program was undertaken by the Company on the initial holding.

By March 2008 the Company’s holdings reached 180 claims and 17 drill holes had been completed.

The drilling results on the limited portion tested concluded significant manganese over thick intersections.

In June 2008 the Company received the first 43-101 compliant estimate from the 2007/8 diamond drill program.

In October 2008 the Company completes the assembly of virtually all the manganese camp at Artillery Peak. The holdings consist of 112 patented claims and 254 unpatented, covering 12 sq miles.

In April 2009 the Company receives a 2nd 43-101 compliant estimate of resources. The 43-101 is based the 2007/8 drilling ,prior drilling and, surface and underground sampling from reports in Jim Lake’s extensive data base. The study reports 1,068,307,976 lbs of indicated contained manganese and 9,661,091,721lbs of inferred contained manganese.

In August 2009 the Company receives a Preliminary Economic Assessment of the viability of exploiting the reported resource. The report concludes positively, calculating a cash cost of production at 44 cents. The total “all in” cost is calculated at 63 cents lb. The total capital expenditure is calculated at $90,000,000.

In December 2009 the metallurgical lab Kemtco reports a proof of concept on the sulfurous acid method of extraction. The report proves a process based on the early work of the Bureau of Mines, further development work by Jim Lake of Hazen Research and Kemetco. The work is successful in producing Electrolytic Manganese Metal from the samples of Artillery Peak.

In June 2010 – the Company signs a Contribution Agreement with the National Research Council of Canada Industrial Research Assistance

Program (NRC-IRAP) to continue the successful development of a hydrometallurgical process to extract and recover high purity manganese from lower grade domestic resources within North America.

On August 24th, 2010 – a Patent Application is submitted for the Company’s energy efficient & environmentally friendly process to produce Electrolytic Manganese Metal.

On October 6th, 2010 – 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 December 6th, 2010- the Society for Mining, Metallurgy & Exploration (“SME”) has accepted a detailed technical paper describing the Company’s new proprietary process for presentation at its 113th National Western Mining Conference to be held in Denver from February 27th to March, 2nd, 2011.

On January 14th, 2011 – Wardrop, A Tetra Tech Company, is commissioned to conduct a NI43-101 compliant preliminary feasibility study for the Company’s Artillery Peak Manganese Project located in Mojave County, Arizona.

On April 7th, 2011 – the Company expands the scope of Kemetco Research Inc.’s work to include “Proof of Concept” testing for the manufacture of Lithium Manganese Oxide (LiMn2O4 (“LMD”) powder.

On July 7th, 2011 - CPM Group is commissioned to develop an electrolytic manganese market study for the Company’s Artillery Peak Manganese Project located in Mojave County, Arizona.

On April 7th, 2011 - the Company expands the scope of Kemetco Research Inc.’s work to include “Proof of Concept” testing for the manufacture of Lithium Manganese Oxide (LiMn2O4 (“LMD”) powder.

On July 7th, 2011 - CPM Group is commissioned to develop an electrolytic manganese market study for the Company’s Artillery Peak Manganese Project located in Mojave County, Arizona.

On August 18, 2011 - Pilot Plant Testing Commences.

On August 30, 2011 - Full Patent Application applied for on Company’s process.

On September 27, 2011 – Successful Pilot Plant Operation concluded, beats expectations.

On November 4, 2011 – Final Resource calculation received from combined drill programs (3) consisting of 18,160 metres (59,565 feet) in 154 holes.

On December 6, 2011 – CPM completes Manganese Market Forecast.

On March 17, 2012 – Company commences development of superior Lithium Ion Battery materials.

On May 14, 2012 - Publication of Advance Process Patent

On May 17, 2012 – Pre-feasibility results are positive.

On Sept 12, 2012 – BCSC reviews pre-feasibility and company amends report to 3 year trailing average price of EMM rending the EMM project uneconomical.

On September 25, 2012 – EMD/EMM Strategy Review

On October 17, 2012 – Successful production of rechargeable Lithium Ion Battery Proto-type.