American Manganese Inc.: Wildcat Hole Returns 7.39% Manganese Over 7.62 Meters (25 Feet) on Upper Shannon Patented Claims
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/16/11 -- 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 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
---------------------------------------------------------------------------
FROM TO FROM TO INTERVAL INTERVAL GRADE
HOLE (feet) (feet) (meters) (meters) (meters) (feet) (%Mn)
---------------------------------------------------------------------------
AP11-118 250 265 76.22 80.79 4.57 15 1.09
---------------------------------------------------------------------------
285 290 86.89 88.41 1.52 5 0.90
---------------------------------------------------------------------------
295 325 89.94 99.09 9.15 30 1.73
---------------------------------------------------------------------------
Including 305 310 92.99 94.51 1.52 5 3.22
---------------------------------------------------------------------------
330 335 100.61 102.13 1.52 5 5.42
---------------------------------------------------------------------------
385 410 117.38 125.00 7.62 25 1.94
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-120 110 150 33.54 45.73 12.20 40 2.51
---------------------------------------------------------------------------
Including 115 120 35.06 36.59 1.52 5 5.51
---------------------------------------------------------------------------
Including 140 150 42.68 45.73 3.05 10 3.34
---------------------------------------------------------------------------
160 190 48.78 57.93 9.15 30 3.66
---------------------------------------------------------------------------
Including 165 185 50.30 56.40 6.10 20 4.89
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-128 260 290 79.27 88.41 9.15 30 2.54
---------------------------------------------------------------------------
Including 270 280 82.32 85.37 3.05 10 4.41
---------------------------------------------------------------------------
315 320 96.04 97.56 1.52 5 1.11
---------------------------------------------------------------------------
330 340 100.61 103.66 3.05 10 1.59
---------------------------------------------------------------------------
470 475 143.29 144.82 1.52 5 0.94
---------------------------------------------------------------------------
545 550 166.16 167.68 1.52 5 1.08
---------------------------------------------------------------------------
595 610 181.40 185.98 4.57 15 1.91
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-130 255 295 77.74 89.94 12.20 40 2.05
---------------------------------------------------------------------------
255 260 77.74 79.27 1.52 5 5.45
---------------------------------------------------------------------------
310 325 94.51 99.09 4.57 15 1.67
---------------------------------------------------------------------------
355 365 108.23 111.28 3.05 10 1.19
---------------------------------------------------------------------------
395 410 120.43 125.00 4.57 15 1.26
---------------------------------------------------------------------------
425 435 129.57 132.62 3.05 10 1.73
---------------------------------------------------------------------------
485 495 147.87 150.91 3.05 10 1.26
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-133 150 175 45.73 53.35 7.62 25 7.39
---------------------------------------------------------------------------
Shannon Upper 180 190 54.88 57.93 3.05 10 1.06
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-135 275 280 83.84 85.37 1.52 5 1.06
---------------------------------------------------------------------------
Shannon Lower 285 300 86.89 91.46 4.57 15 1.16
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-136 130 140 39.63 42.68 3.05 10 1.79
---------------------------------------------------------------------------
Burro S.
---------------------------------------------------------------------------
---------------------------------------------------------------------------
AP11-137 140 145 42.68 44.21 1.52 5 0.99
---------------------------------------------------------------------------
Burro N. 155 165 47.26 50.30 3.05 10 1.19
---------------------------------------------------------------------------
175 180 53.35 54.88 1.52 5 0.94
---------------------------------------------------------------------------
185 195 56.40 59.45 3.05 10 1.29
---------------------------------------------------------------------------
215 220 65.55 67.07 1.52 5 1.07
---------------------------------------------------------------------------
230 240 70.12 73.17 3.05 10 1.28
---------------------------------------------------------------------------
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).
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