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 announce 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.
The paper, a joint effort by American Manganese Inc. & Kemetco Research Inc. gives details of the new developments for extraction and recovery of high purity manganese metal from lower grade resources which typically may contain 3% to 10% manganese. The huge lower grade resources which exist in the Mojave County region of Arizona are amenable to this new technology and thereby offer an opportunity for them to become a domestic supply of manganese for U.S. and other North American requirements. At present there is no commercial production of high purity manganese metal in North America and imports are subject to a tariff of 14% in addition to any export taxes levied by the exporter before entry into the U.S.A.
Pilot Plant Proposals
Within the next one-two weeks the Company will receive proposals for setting up & operating a small scale continuous pilot plant to extend development through confirmation of the conceptual process. This will involve cooperation and input from an internationally known engineering consultant responsible for the final report which will be the basis for the pre-feasibility statement.
Selection of the preferred commercial testing facility and the engineering consultants will be made in January2011. Pilot plant work is scheduled for completion in the second quarter.
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 $1.77/lb) the current world price for Electrolytic Manganese Metal is about $1.55/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