VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/19/11 -- 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 an additional 3,050 meters (10,000 feet) of rotary drilling has been awarded to Drill-Tech, Inc., of Chino Valley, Arizona, bring the total contracted amount for the program currently underway to 9,150 meters (30,000 feet) on the Companys Artillery Peak Manganese Project located in Mojave County, Arizona. "This drilling program is proceeding extremely well, and the results are very encouraging. Even though we are awaiting the first assays, it is prudent to follow-up what we have seen to-date," says Mr. Reaugh. As of May 16, 2011, 4,531 meters (14,500 feet) entailing 45 rotary drill holes have been completed with first assays expected before the end of the month.
Furthermore, Mr. Reaugh also announces an additional 102 mining claims have been staked, bring the Companys total land holdings at Artillery Peak to 1,124.6 hectares (9,899 acres). Mr. Reaugh goes on to say: "Our knowledge of the area and deposit has developed over the past 3 years such that we can reasonably anticipate potential extensions of the mineralized horizon. As this ground was open, locking it up is in the best interest of the Company."
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 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 companys 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 Manganese
China controls electrolytic manganese production (EMM) supplying and producing 97.44% of the worlds 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. EMMs 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 Mr. 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 Companys expectations are disclosed in the Companys 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
