American Manganese Inc.: Artillery Peak Contracts Awarded for 6100m of Rotary Drilling
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/29/11 -- Mr. Larry Reaugh, President and Chief Executive Officer of American Manganese Inc. ('American Manganese' or the 'Company') (TSX VENTURE: AMY)(PINK SHEETS: AMYZF), is pleased to announce that Drill-Tech, Inc., of Chino Valley, Arizona, has been awarded a contract to perform a minimum of 6100 meters (20, 000 feet) of rotary drilling on the Company's Artillery Peak Manganese Project located in Mojave County, Arizona. Drilling is scheduled to start on April 15, 2011. 'This drilling program focuses on moving the resources located on patented claims along the eastern flank of Manganese Mesa from the Inferred category to the Indicated category for open pit mining scenario evaluation purposes, and explore near by untested patented claims for new resources.' 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 contain Mn), and an Inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).
Mr. Reaugh also announces that EPG, Inc., of Phoenix, Arizona, has been awarded a contract to perform a cultural and biological resource survey to support exploration drilling on unpatented Artillery Peak mining claims. Mr. Reaugh goes on to say: 'This work forms the basis for getting the necessary regulatory approvals for doing drilling exploration programs on public lands. Obtaining these approvals greatly improves the potential for expanding the identified manganese resource as these lands contain old workings and known out crops that have been neither connected nor drill tested.'
About Drill-Tech, Inc.:
Drill-Tech provides air rotary, reverse circulation, mud rotary and core exploration drilling company primarily servicing mining and water well clients in the southwestern United States. Its principal employees have a combined drilling experience of more than 60 years. The company's track record of high performance, ability to work with government agencies and consulting engineers, and safety and environmental consciousness are demonstrated by its high volume of repeat business.
About EPG, Inc.:
EPG is an interdisciplinary planning and design firm with more than 160 employees and a senior staff averaging approximately 30 years of experience. The company specializes in providing environmental planning and permitting studies to industries and all levels of government. Its services include program and project management, archaeological and biological studies and surveys, land use investigations, visual resource assessments and simulations, landscape architecture and design, reclamation and construction inspection compliance, earth sciences, public involvement, geographic information systems (GIS), and graphic design.
About Manganese
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 $1.81/lb) the current world price for Electrolytic Manganese Metal is about $1.52/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
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