Artillery
Peak Manganese Project Update
April 27, 2010 - Vancouver, British Columbia
Larry W. Reaugh, President and Chief Executive Officer of
American Manganese Inc., (TSX.V: AMY; Pink Sheets: AMYZF) (�American
Manganese� or the �Company�) is pleased to report on the continuing progress of
the project. Reverse circulation drilling is continuing and conceptual
process development to define and confirm the procedures for production of high
grade manganese metal, produced electrolytically, is nearing completion.
This will lay the ground work for continuous bench scale testing followed by a pilot
plant campaign which is scheduled to get underway within the next three months.
Project Development Concept
Mr. Reaugh states that: �The over arching principles guiding
the project development concept include:
- Minimize the total
environmental footprint of the project;
- Minimize water consumption
by maximizing water reuse;
- Promote energy efficiency
and use of �Green Power� options;
- Apply state of the art
technologies�.
As currently contemplated, the resource could be mined by
open pit methods in a very safe and cost effective manner.
The hydrometallurgical process is based on extensive test
work reported by the US Bureau of Mines (�U.S.B.M�) over a period of almost
forty years and supplemented by contract research and process development
carried out at Hazen Research Inc. on behalf of James L. Lake (Metallurgist)
and the Company�s ongoing efforts at Kemetco Research laboratory in Richmond,
BC.
As contemplated, a processing rate of 3,500 tonnes/day is
expected to yield approximately 49,000 tonnes of metal per year based on mill
feed containing 4.5% Mn and overall rate of recovery of 90%. The cash
production costs are estimated to be approximately $0.44 US/lb manganese.
The key to the low production costs is the overall simplicity of the process
using sulphur dioxide and water to leach manganese from the resource without
any need to roast or calcine mill feed beforehand.
Excess heat from production of So2 by burning sulphur is
available for co-generation of electrical power (5 MWe), and residual low
grade heat can be used within the process. The Company is also
investigating onsite solar power generation options.
Conservation of water is mandatory in this arid
region or Arizona. Accordingly, the process is designed to minimize use
of water with vapor streams from evaporators collected, condensed and
recycled. The Artillery Peak resource does not appear to be acid
generating. The leached residues are high pressure filtered to produce
�dry� tailings, in cake form that are suitable material for co-disposal
into mined out areas of the open pit. This also facilitates
progressive reclamation of the mine.
To date 2,297 meters (7,535 ft) of rotary drilling has been
drilled in 31 holes. The initial drill hole locations were spotted on
patented claims near the limits of the mineralized horizon for logistic
reasons. Five (5) holes have been previously reported on April 19, 2010
and the balance of the results will be released as the outstanding assay
results are released and compiled.
The drill is now being moved to the top of Manganese
Mesa, where historical results indicate the mineralized zone could be thicker
and higher grade.
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, P.Eng. a
qualified person pursuant to National Instrument 43-101.
Larry W. Reaugh
President and Chief Executive Officer
President and Chief Executive Officer
Head Office: 2A 15782 Marine Drive, White Rock, B.C.
V4B 1E6
Telephone: 604-531-9639 Facsimile:
604-531-9634
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