Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. (“American Manganese” or the “Company”), (TSX.V: AMY; Pink Sheets: AMYZF), is pleased to announce that the first rotary drill arrived on-site yesterday and started drilling on April 20. A second rotary drill is scheduled to arrive on or before April 24. As announced on March 29, Drill-Tech, Inc., of Chino Valley, Arizona, was awarded a contract to perform a minimum of 6100 meters (20,000 feet) of rotary drilling on the Company’s Artillery Peak Manganese Project located in Mojave County, Arizona. This drilling program focuses on moving the resources located on patented claims along the eastern flank of Manganese Mesa from the Inferred category to the Indicated category for open pit mining scenario evaluation purposes, and explore nearby untested patented claims for new resources.
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 contain Mn), and an Inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).
About Drill-Tech, Inc.:
Drill-Tech provides air rotary, reverse circulation, mud rotary and core exploration drilling company primarily servicing mining and water well clients in the southwestern United States. Its principal employees have a combined drilling experience of more than 60 years. The company’s track record of high performance, ability to work with government agencies and consulting engineers, and safety and environmental consciousness are demonstrated by its high volume of repeat business.
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.
On behalf of Management
AMERICAN MANGANESE INC.
Larry W. Reaugh
President and Chief Executive Officer