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 first 6 drill holes from its 2011 Artillery Peak drilling program, and that the drilling program has been increased by an additional 1,500 meters (5,000 feet). The total amount of approved drilling is now 10,670 meters (35,000 ft)
The company initiated this drilling program on April 20, 2011 and it is being performed using reverse circulation drilling techniques as the mineralization is disseminated and uniform. The reverse circulation drilling is more economic than core drilling and will provide the information needed to evaluate the deposit. 7,437 meters (24,000 ft) has been drilled as of June 2, 2011 in 66 holes.
Mr. Reaugh states that “We are pleased to increase the drilling program again. We are closing information gaps and increasing the amount known mineralization the patented claims along the northeast flank of Manganese Mesa. 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 mineralized intersections continue to demonstrate the expected lateral continuity over good widths, augmented by local higher grade intersections” Mr. Reaugh goes on the say: “The program management and contractor performance has been excellent to-date.”
The significant mineralized intersections for the first six drill holes are presented in the table below. Drill Hole AP11–55 contained no significant mineralized intersections as it was drilled below the sub-crop of the manganese bearing beds and serves a condemnation hole.
2011 DRILL PROGRAM
|AP11-55||CONDEMNATION HOLE TESTED LIMITS OF MINERALIZATION|
|NO SIGNIFICANT MINERALIZATION|
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 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 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