American Manganese Inc.: Drilling on South Manganese Mesa Extends Mineralization
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/03/11 -- 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') is pleased to report the Company has received results for the following 14 holes from its 2011 Artillery Peak drilling program. The results for first 59 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 86 drill holes.
Mr. Reaugh states that, 'We have now reported results for 73 of the 86 drill holes, and are very pleased with the results. The results of Drill Hole 126 and 129 are particularly outstanding. Drill holes 125 and 127 intersected good mineralized intervals, extending the known mineralization toward the south on Manganese Mesa. We are closing information gaps and increasing the amount of known mineralization on the patented lands. 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.'
The significant mineralized intersections for the following 14 drill holes are presented in the table below.
2011 DRILL PROGRAM
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FROM TO FROM TO INTERVAL INTERVAL GRADE
HOLE (feet) (feet) (meters) (meters) (meters) (feet) (%Mn)
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AP11-114 140 185 42.68 56.40 13.72 45 1.88
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Including 145 150 44.21 45.73 1.52 5 3.20
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Including 160 165 48.78 50.30 1.52 5 3.12
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AP11-115 105 110 32.01 33.54 1.52 5 1.08
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115 135 35.06 41.16 6.10 20 1.67
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140 160 42.68 48.78 6.10 20 2.04
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165 210 50.30 64.02 13.72 45 2.14
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Including 185 190 56.40 57.93 1.52 5 4.13
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265 275 80.79 83.84 3.05 10 2.34
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Including 270 275 82.32 83.84 1.52 5 3.21
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305 310 92.99 94.51 1.52 5 0.99
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325 330 99.09 100.61 1.52 5 1.40
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AP11-119 95 155 28.96 47.26 18.29 60 2.92
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Including 95 115 28.96 35.06 6.10 20 3.93
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Including 135 145 41.16 44.21 3.05 10 3.25
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185 280 56.40 85.37 28.96 95 2.49
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Including 205 225 62.50 68.60 6.10 20 4.07
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Including 265 275 80.79 83.84 3.05 10 3.90
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335 350 102.13 106.71 4.57 15 1.37
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AP11-120 250 275 76.22 83.84 7.62 25 1.44
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290 310 88.41 94.51 6.10 20 2.06
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375 390 114.33 118.90 4.57 15 1.88
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AP11-121 115 215 35.06 65.55 30.49 100 1.49
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Including 115 120 35.06 36.59 1.52 5 3.36
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260 275 79.27 83.84 4.57 15 2.84
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285 305 86.89 92.99 6.10 20 2.82
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Including 285 295 86.89 89.94 3.05 10 3.96
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310 315 94.51 96.04 1.52 5 1.49
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325 330 99.09 100.61 1.52 5 3.12
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350 360 106.71 109.76 3.05 10 1.18
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370 385 112.80 117.38 4.57 15 1.16
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AP11-122 110 155 33.54 47.26 13.72 45 3.00
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Including 125 140 38.11 42.68 4.57 15 5.05
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160 165 48.78 50.30 1.52 5 1.15
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170 195 51.83 59.45 7.62 25 2.81
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Including 170 175 51.83 53.35 1.52 5 6.28
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200 205 60.98 62.50 1.52 5 1.13
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210 215 64.02 65.55 1.52 5 1.01
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260 275 79.27 83.84 4.57 15 2.04
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400 405 121.95 123.48 1.52 5 1.07
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AP11-123 135 155 41.16 47.26 6.10 20 1.50
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160 170 48.78 51.83 3.05 10 1.43
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185 190 56.40 57.93 1.52 5 0.96
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195 200 59.45 60.98 1.52 5 1.20
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205 215 62.50 65.55 3.05 10 1.60
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225 235 68.60 71.65 3.05 10 1.12
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245 250 74.70 76.22 1.52 5 1.93
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280 290 85.37 88.41 3.05 10 2.79
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Including 280 285 85.37 86.89 1.52 5 3.19
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295 300 89.94 91.46 1.52 5 3.40
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360 365 109.76 111.28 1.52 5 2.11
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AP11-124 60 135 18.29 41.16 22.87 75 1.84
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Including 60 95 18.29 28.96 10.67 35 3.26
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140 145 42.68 44.21 1.52 5 1.37
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170 225 51.83 68.60 16.77 55 2.46
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Including 170 175 51.83 53.35 1.52 5 4.89
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Including 200 210 60.98 64.02 3.05 10 3.47
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250 285 76.22 86.89 10.67 35 2.63
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Including 250 260 76.22 79.27 3.05 10 3.70
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290 295 88.41 89.94 1.52 5 1.20
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335 340 102.13 103.66 1.52 5 1.33
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345 355 105.18 108.23 3.05 10 1.57
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430 435 131.10 132.62 1.52 5 1.27
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445 470 135.67 143.29 7.62 25 3.43
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Including 445 460 135.67 140.24 4.57 15 4.76
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485 490 147.87 149.39 1.52 5 1.20
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AP11-125 160 170 48.78 51.83 3.05 10 0.94
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175 210 53.35 64.02 10.67 35 1.31
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235 260 71.65 79.27 7.62 25 2.14
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Including 250 255 76.22 77.74 1.52 5 3.09
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310 320 94.51 97.56 3.05 10 2.64
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Including 315 320 96.04 97.56 1.52 5 3.77
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335 340 102.13 103.66 1.52 5 1.24
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345 350 105.18 106.71 1.52 5 2.91
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415 420 126.52 128.05 1.52 5 1.79
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AP11-126 95 150 28.96 45.73 16.77 55 3.42
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Including 95 125 28.96 38.11 9.15 30 4.33
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175 230 53.35 70.12 16.77 55 2.39
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Including 200 210 60.98 64.02 3.05 10 4.59
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260 285 79.27 86.89 7.62 25 2.85
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Including 265 275 80.79 83.84 3.05 10 3.28
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295 300 89.94 91.46 1.52 5 0.90
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305 310 92.99 94.51 1.52 5 1.04
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350 360 106.71 109.71 3.05 10 1.01
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480 510 146.34 155.49 9.15 30 3.58
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Including 480 490 146.34 149.39 3.05 10 3.76
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Including 495 510 150.91 155.49 4.57 15 4.24
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520 545 158.54 166.16 7.62 25 2.46
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Including 520 525 158.54 160.06 1.52 5 3.45
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Including 530 535 161.59 163.11 1.52 5 3.10
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575 585 175.30 178.35 3.05 10 2.71
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AP11-127 150 165 45.73 50.30 4.57 15 1.27
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170 200 51.83 60.98 9.15 30 2.36
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Including 185 190 56.40 57.93 1.52 5 3.42
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Including 195 200 59.45 60.98 1.52 5 3.00
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205 240 62.50 73.17 10.67 35 2.72
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Including 210 215 64.02 65.55 1.52 5 4.13
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Including 225 230 68.60 70.12 1.52 5 4.81
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275 295 83.84 89.94 6.10 20 2.07
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Including 275 280 83.84 85.37 1.52 5 3.51
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310 320 94.51 97.56 3.05 10 3.37
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Including 310 315 94.51 96.04 1.52 5 3.96
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340 365 103.66 111.28 7.62 25 1.47
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AP11-129 15 115 4.57 35.06 30.49 100 2.12
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35 40 10.67 12.20 1.52 5 4.23
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120 140 36.59 42.68 6.10 20 1.31
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200 205 60.98 62.50 1.52 5 2.54
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210 245 64.02 74.70 10.67 35 2.10
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Including 230 235 70.12 71.65 1.52 5 6.43
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255 280 77.74 85.37 7.62 25 3.24
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Including 255 260 77.74 79.27 1.52 5 3.54
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Including 265 270 80.79 82.32 1.52 5 6.27
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295 300 89.94 91.46 1.52 5 0.96
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AP11-132 285 290 86.89 88.41 1.52 5 2.47
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295 310 89.94 94.51 4.57 15 3.62
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Including 305 310 92.99 94.51 1.52 5 6.89
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335 340 102.13 103.66 1.52 5 1.07
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355 385 108.23 117.38 9.15 30 1.46
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400 405 121.95 123.48 1.52 5 2.11
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410 415 125.00 126.52 1.52 5 1.27
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500 515 152.44 157.01 4.57 15 2.33
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520 525 158.54 160.06 1.52 5 1.93
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AP11-134 215 225 65.55 68.60 3.05 10 1.04
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South Mesa 235 240 71.65 73.17 1.52 5 0.93
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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 contain Mn), and an Inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).
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