N. Tribe & Associates Ltd. prepared the up-to-date NI 43-101 compliant Resource Estimate and the results are summarized below:
|0.90% Mn Cut-off Grade|
|ZONE||TONNEST||GRADE%Mn||Mn POUNDSIN BILLIONS|
|SOUTH CHAPIN, BURRO,PRICE,PRICELESS||23,788,479||2.95||1.546|
Samples were prepared by ALS Chemex in Sparks Nevada and the assaying was performed by ALS Chemex in North Vancouver, B.C.
The new NI 43-101 Resource Estimate will be filed with the regulators on SEDAR within 45 days of this news release.
The previous NI 43-101 compliant resource estimate at a 0.9% cut-off grade is summarized below:
IN BILLIONS (109)
Mr. Reaugh states: “I am extremely pleased with the results. Not only has the amount of contained Mn metal increased by 19%, but also the amount of the metal resource in the Indicated category has increased by 123% from the previous estimate. These results support our belief in the character and quality of the Artillery Peak Deposit, and there is a lot more ground to explore to expand the resource further.”
Mr. Reaugh also states that: “the Chinese Government has been cracking down on smuggling of EMM through Vietnam thereby creating shortages and price increases in the European market.”
China controls electrolytic manganese production (EMM) supplying and producing 98.44% of the world’s needs (3.0 billion pounds per year).
There is no substitute for manganese in steel (total manganese market greater than 31 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%).
Electrolytic manganese dioxide (EMD) for the battery industry is expected to be the fastest growing segment of the manganese market.
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 $1.54/lb. Manganese resources are declining in China especially carbonate ores for production of EMM, forcing Chinese companies to seek production offshore.
China is currently shutting down production of EMM in several provinces for environmental reasons.
China production of EMM predicted to fall 500 – 700,000 T’s out of 1.4 million T’s in next 3 – 5 years.
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. The Company is well financed to execute its contemplated work programs.
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