American Manganese Inc.: Clarification of Resource Estimates
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/04/11 -- Mr. Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (TSX VENTURE: AMY)(PINK SHEETS: AMYZF)(FRANKFURT: 2AM) ('American Manganese' or the 'Company'), reports that subsequent to the announcement of resource estimates for its Artillery Peak Project in a news release dated September 8, 2011, N. Tribe & Associates Ltd. has re-interpreted the resources on the outlying portions of the mineralized zones and has adjusted the resource estimates in those areas accordingly. The affected resources in the Loves, Hurley, and Planche zones are located between 1 and 3 miles south of the zone of immediate economic interest situated along the northeast slope of Manganese Mesa. The adjusted resource estimates are reported in the Company's National Instrument 43-101 compliant report entitled 'Mineral Resource Evaluation Report on the Artillery Mountain Manganese Property, Mojave County, Arizona, USA', (the 'Technical Report') which was filed on SEDAR on October 19, 2011.
The adjusted resource estimates contained in the Technical Report and the now-outdated resource estimates in the September 8, 2011 news release are compared below:
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As reported in September 8,
As reported in 43-101 Report 2011
filed on SEDAR News Release
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0.90% Mn Cut-off Grade 0.90% Mn Cut-off Grade
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INDICATED
RESOURCE
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Mn POUNDS Mn POUNDS
TONNES GRADE IN TONNES GRADE IN
ZONE (T) (%Mn) BILLIONS (T) (%Mn) BILLIONS
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(10(9)) (10(9))
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LAKE/MACGREGOR 77,368,321 2.60 4.432 75,532,878 2.66 4.432
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MAGGIE 113,663,426 2.90 7.284 113,663,426 2.90 7.284
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LOVE'S, HURLEY, 3,616,579 5.16 0.411 11,971,949 5.76 1.522
PLANCHE
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SOUTH CHAPIN, 24,788,169 2.87 1.571 23,788,479 2.95 1.546
BURRO, PRICE,
PRICELESS
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SHANNON 1,507,022 3.96 0.132 1,507,022 3.96 0.132
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TOTAL 220,943,518 2.84 13.830 226,463,754 2.99 14.916
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INFERRED
RESOURCE
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LAKE MACGREGOR 1,638,089 3.45 0.124 1,638,089 3.16 0.124
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MAGGIE 40,360,508 2.71 2.409 40,443,207 2.71 2.416
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LOVE'S, HURLEY, 4,110,834 4.00 0.363 4,110,834 4.00 0.363
PLANCHE
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SOUTH CHAPIN, 5,930,764 2.87 0.375 5,930,764 2.87 0.375
BURRO, PRICE,
PRICELESS
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SHANNON 4,298,133 2.74 0.260 4,298,133 2.74 0.260
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TOTAL 56,338,329 2.84 3.531 56,421,027 2.84 3.538
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The 2011 drilling program included 84 reverse circulation drill holes totaling 10,607 meters (34,800 feet) on Manganese Mesa, Burro, and Shannon patented claims of the property. Samples were prepared by ALS Chemex in Sparks Nevada and the assaying was performed by ALS Chemex in North Vancouver, B.C.
This has resulted in an upgrading of a large proportion of the resource from inferred to indicated. The step-out drilling has resulted in a 39% increase of the overall tonnage and a 12% increase in the contained pounds of manganese.
Mr. Reaugh states: 'While I am naturally disappointed with having to reinterpret the geology and deal with the confusion this can generate; it is more important to get things right. The reduction of about 1.086 billion lbs. of manganese resource from these outlying areas does not impact the development plans for the project. I would reiterate that the resources in the primary zone of economic interest, located within patented claims along the northeast slope of Manganese Mesa, have not changed. Moreover, these results still support our belief in the character and quality of the Artillery Peak Deposit, and the need to explore the balance of the Company's extensive land position in a systematic professional manner to further expand the resources.'
Pilot Plant
Final results from the pilot plant testing are expected within the next three weeks.
About Manganese
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
This news release may contain certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
American Manganese Inc.
Larry W. Reaugh
President and Chief Executive Officer
604-531-9639
604-531-9634 (FAX)
www.americanmanganeseinc.com
