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American Manganese Acquires Phosphate Project in Ft. Steele Mining Division

Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. ("American Manganese" or the "Company"), is pleased to report that the Company has acquired by staking two claim blocks totaling 1581.21 hectares (3906.38 acres) in the Ft. Steele Mining Division, located 11.5 km north of Sparwood, BC. Mr. Reaugh states, "The acquisition of this phosphate project follows the Company's philosophy of finding superior value in non-mainstream mineral projects in politically stable and mining-friendly jurisdictions through the application of state-of-the-art mineral science."

The claim blocks, historically known as "Line Creek/Mount Lyne" and "Fording River" respectively, are 3.5 km apart and are easily accessible from existing roads and highway. Furthermore, a CP Rail line runs through the Fording River claims.

Ministry of Employment and Investment Bulletin 98 titled "Phosphate deposits in British Columbia" by S. Butrenchuck (1996); describes the properties and the work performed by Cominco Ltd. and Crows Nest Resources Limited during the mid-1970s. This work included some diamond drilling, track dozer/back hoe/hand surface trenching, and a 12 meter adit. From this report:

  • General Geology: "Triassic strata are unconformably overlain by dark grey to black shale, phosphate and minor limestone, siltstone and sandstone of the Jurassic Fernie Formation (Freebold1957, 1969). In southeastern British Columbia this formation occupies a broad canoe-shaped synclinal structure covering an area of 2000 square kilometers and attains thicknesses of 70 and 376 meters with a general thickening westward. A persistent pelletal phosphorite bed, 1 to 2 meters thick and containing greater than 15% P2O5 was deposited in a transgressive sequence at the base of the Fernie Formation in strata of Sinemurian age. It rests either directly Triassic strata or is separated from the underlying rocks by a thin phosphatic conglomerate. The phosphatic interval may also be represented by two phosphate beds separated by phosphatic shale. Thicknesses in excess of 2 meters are attained locally, as at Mount Lyne where 4 meters of phosphate rock are present. Phosphatic shales of variable thickness, generally less than 3 meters, overlie the phosphate. The top of this sequence is sometimes marked by a yellowish orange calcareous bed 2 to 5 centimeters thick. Thin marcasite bed may be present locally within the phosphatic interval."
  • Line Creek/Mount Lyne (977.41 hectares or 2415.80 acres): "In the west Line Creek area the basal phosphate can be traced for a strike length of 15 kilometers, in strata that dip 40 to 75 degrees easterly. It varies in thickness from less than 1 meter south of west Line Creek, to more than 3 meters at Mount Lyne. Phosphate content ranges from a low of 3.7% P2O5 in a diamond drill hole to a high of 23.71% P2O5 across 1.6 meters in a back hoe trench." The test results include:
    • 19.5% P2O5 over 1.75 meters in a track dozer trench cut on the north end of the property.
    • 19.5% P2O5 over 1.75 meters in a hand trench cut about 1 kilometer south of the aforesaid track dozer trench.
    • 23.71% over 1.6 meters in a back hoe trench cut about 2 kilometers south of the aforesaid track dozer trench.
    • 3.70% P2O5 over 0.50 meters in a diamond drill hole sited about 6 kilometers south of the aforesaid track dozer trench.
    • On ground not owned by Company, 23.2% P2O5 over 2 meters was sampled at site about 2 kilometers north of the aforesaid track dozer trench.
  • Fording River (603.82 hectares or 1491.20 acres): "The Fording River phosphate occurrence, which has been known for a number of years, has been explored by Crows Nest Resources Limited and Cominco Ltd. The work by Cominco included diamond drilling, mapping, trenching and a 12 meter adit." The test results from Cominco Ltd. assessment reports 5545, 5866, and 5867 include:
    • 16.93% P2O5 over 1.5 meters in diamond drill hole 75-1 located southwest of Grave Lake in the southern portion of the claim block.
    • 18.57% P2O5 over 1.76 meters in diamond drill hole 75-5 located about 8 kilometers north of diamond drill hole 75-1.
    • 21.30% P2O5 over 1.20 meters from the face of a 12 meter adit located about 1 kilometer southeast of diamond drill hole 75-5.

A suitable means of mineral processing is required to yield a concentrate grading 30% P2O5 with acceptable mineral recovery. Previous test work is more than 40 years old, and does not reflect advances in reagents and mineral processing technologies. As known phosphate deposits become depleted, the need for new mining and extraction methods continues to grow. The Company plans to investigate and apply the latest scientific advances in phosphate beneficiation to confirm the previous work and improve the results.

According to the USGS (2013) world mine production increased from 198 million tonnes in 2011 to 210 million tonnes in 2012. The United States is the world's second largest phosphate producer, and phosphate mining represents the fifth largest mining industry in the United States. More than 95% of the U.S. phosphate rock mined is used to manufacture wet process phosphoric acid and superphosphoric acid, which are then used as intermediate feed stocks in the manufacture of granular and liquid ammonium phosphate fertilizers and animal feed supplements. Phosphorus is an essential ingredient in agriculture, for which there are no substitutes.

All of the historical estimates mentioned above may not be compliant with National Instrument 43-101 and should not be relied upon. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves.

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 metal from its Arizona Manganese Project.

This release has been reviewed by Michael MacLeod, PEng, a qualified person pursuant to National Instrument 43-101.

On behalf of Management, AMERICAN MANGANESE INC.

Larry W. Reaugh, President and Chief Executive Officer


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