Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc., (TSX.V: AMY; OTC US: AMYZF) (“American Manganese” or the “Company”) is pleased to report on the continuing progress of the project. Reverse circulation drilling is continuing and conceptual process development to define and confirm the procedures for production of high grade manganese metal, produced electrolytically, is nearing completion. This will lay the ground work for continuous bench scale testing followed by a pilot plant campaign which is scheduled to get underway within the next three months.
Project Development Concept
Mr. Reaugh states that: “The over arching principles guiding the project development concept include:
• Minimize the total environmental footprint of the project;
• Minimize water consumption by maximizing water reuse;
• Promote energy efficiency and use of “Green Power” options;
• Apply state of the art technologies”.
As currently contemplated, the resource could be mined by open pit methods in a very safe and cost effective manner.
The hydrometallurgical process is based on extensive test work reported by the US Bureau of Mines (“U.S.B.M”) over a period of almost forty years and supplemented by contract research and process development carried out at Hazen Research Inc. on behalf of James L. Lake (Metallurgist) and the Company’s ongoing efforts at Kemetco Research laboratory in Richmond, BC.
As contemplated, a processing rate of 3,500 tonnes/day is expected to yield approximately 49,000 tonnes of metal per year based on mill feed containing 4.5% Mn and overall rate of recovery of 90%. The cash production costs are estimated to be approximately $0.44 US/lb manganese. The key to the low production costs is the overall simplicity of the process using sulphur dioxide and water to leach manganese from the resource without any need to roast or calcine mill feed beforehand.
Excess heat from production of So2 by burning sulphur is available for co-generation of electrical power (5 MWe), and residual low grade heat can be used within the process. The Company is also investigating onsite solar power generation options.
Conservation of water is mandatory in this arid region or Arizona. Accordingly, the process is designed to minimize use of water with vapor streams from evaporators collected, condensed and recycled. The Artillery Peak resource does not appear to be acid generating. The leached residues are high pressure filtered to produce “dry” tailings, in cake form that are suitable material for co-disposal into mined out areas of the open pit. This also facilitates progressive reclamation of the mine.
To date 2,297 meters (7,535 ft) of rotary drilling has been drilled in 31 holes. The initial drill hole locations were spotted on patented claims near the limits of the mineralized horizon for logistic reasons. Five (5) holes have been previously reported on April 19, 2010 and the balance of the results will be released as the outstanding assay results are released and compiled.
The drill is now being moved to the top of Manganese Mesa, where historical results indicate the mineralized zone could be thicker and higher grade.
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, 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