American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; Pink Sheets: AMYZF), is pleased to announce that Kemetco Research Inc. of Richmond, BC has been awarded the contract to continue development of the Company’s innovative energy and water efficient hydro-metallurgical process for treating low grade manganese resources from its Artillery Peak Manganese deposit located in Mojave County, Arizona. The testing program is designed to confirm the process operating conditions on a continuous bench scale basis, providing the technical data necessary for an initial process scale-up for treating about 3500 tonnes per day of feed to produce about 140 tonnes per day of high purity electrolytic manganese. The conceptual process was announced previously on August 24, 2010 and is described in Kemetco’s report “The Recovery of Manganese from Low Grade Resources and Bench Scale Test Program Completed” dated July 1, 2010.
The Artillery Peak Manganese deposit is estimated to contain an indicated resource of about 92.8 million tonnes grading 3.27% Mn (6.7 billion lbs contain Mn), and an inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).
“I am pleased and excited with this next phase of our work program” says Mr. Larry Reaugh, President and Chief Executive Officer. “Kemetco has done a good job for us in the past and they have the high calibre manpower and facilities to complete the test work by the 3rd quarter of 2011, and file the complete patent application covering the innovative hydro-metallurgical manganese extraction process with the U.S. Patent Office by year end.”
The results from the process prototype are necessary for the preparation of a preliminary engineering feasibility study, which is scheduled for completion in the 4th quarter of 2011.
About Kemetco Research:
Kemetco Research is a privately owned contract research and development company specializing in extractive metallurgy, chemical processing and specialty chemical analysis. Kemetco was formed after the acquisition of the industrial process division of B.C. Research. B.C. Research had been in operation for over 60 years as a research and development contractor in British Columbia, Canada.
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 John W. Fisher, 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