American Manganese Inc. (TSX VENTURE:AMY)(PINK SHEETS:AMYZF), is reporting that a new NI 43-101 compliant Resource Estimate, which incorporates the results of the 2010 drilling program, shows a substantial increase in the amount of manganese contained in the Artillery Peak Project.
The 2010 drilling program included 53 reverse circulation drill holes totaling 4,526.3 meters (14,850 feet) on patented claims located on the northern third of the property.
N. Tribe & Associates Ltd. prepared the up-to-date NI 43-101 compliant Resource Estimate and the results are summarized below:
* All contained assays above cut-off grade.
Assays were performed by ALS Chemex in Sparks, Nevada.
The new NI 43-101 Resource Estimate will be filed with the regulators on SEDAR within 45 days of this news release.
The previous NI 43-101 compliant resource estimate at a 0.9% cut-off grade is summarized below:
Mr. Reaugh states: "I am extremely pleased with the results. Not only has the amount of contained Mn metal increased by about 45%, but also the amount of the resource in the Indicated Category has increased by more than six times from the previous estimate. These results support our belief in the character and quality of the Artillery Peak Deposit, and there is a lot more ground to explore to expand the resource further."
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; the current world price for Electrolytic Manganese Metal is about $1.43/lb. Manganese resources are declining in China.
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.
Source: AMERICAN MANGANESE INC.