Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc., (TSX.V: AMY; OTC US: AMYZF; FSE: 2AM) (“American Manganese” or the “Company”) is pleased to report the Company has received results for the following 8 holes from its 2011 Artillery Peak drilling program. The results for first 73 drill holes have been previously announced.
The company initiated the drilling program on April 20, 2011 and completed on June 17, 2011. It was performed using reverse circulation drilling techniques as the mineralization is disseminated and uniform. A total of 10,607 meters (34,800 ft.) was drilled in 84 drill holes.
Mr. Reaugh states that “We have now reported results for all drill holes, and are very pleased with the results. Of all the holes drilled, only three (No. 61, 55, and 131) contained no mineralization, or mineralization too weak to report. These holes serve to delineate the manganese bed sub-crop. Two holes were deferred to the next program at the last minute. We are closing information gaps and increasing the amount of known mineralization on the patented lands.”
Mr. Reaugh goes on to say: “Drill holes 133 and 135 were wildcat holes drilled on the Shannon patented claims, located about 4 kilometers west of Manganese Mesa. Drill holes 136 and 137 were wildcat holes drilled on the Burro patented claims, located about 6 kilometers southeast 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. As expected, the mineralized intersections continue to demonstrate the expected lateral continuity over good widths, augmented by local higher grade intersections”.
Mr. Reaugh points out the Company is financially strong with $7 million in the bank, more than enough to complete the ongoing pilot plant test, pre-feasibility study and environmental and regulatory permitting as well as begin the final feasibility report.
The significant mineralized intersections for the following 8 drill holes are presented in the table below.
2011 DRILL PROGRAM
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 contained Mn), and an Inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).
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