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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/15/13 -- Larry W. Reaugh, Chief Executive Officer of American Manganese Inc. ("American Manganese" or the "Company") (TSX VENTURE: AMY)(PINKSHEETS: AMYZF)(FRANKFURT: 2AM), reports on American Manganese's 2011 and 2012 programs and managements plans relating to future development of the Artillery Peak Project.
Future Plan
Since the pre-feasibility study management has been studying ways to maximize their resources at Artillery Peak as follows:
a. Address the opportunities to reduce capital expenses (capex) and operating expenses (opex) which include production of electrolytic manganese dioxide (EMD) or chemical manganese dioxide (CMD). Only 60% of manganese metal is used to produce an equivalent amount of EMD or CMD to EMM (100%) significantly reducing the footprint and positively affect the capex and opex. Production of CMD eliminates the requirement for electrolytic cells.b. The Company has identified areas to explore where the potential to increase the manganese grades exists such as:-- Wildcat drill hole AP-11-133 was drilled in the upper Shannon located 4 km west of manganese mesa and returned 7.62 meters grading 7.39% Mn.-- Wildcat diamond drill hole #ADH-25 was drilled 1.6 km south and east of Loves Mine and returned 24.39 meters of 4.34% Mn. The Company will evaluate these targets which have the potential to host higher grades thereby possibly further reducing the overall foot print of the mill site and mining operations. Other areas on the property like the Maggie Canyon also host the potential for higher grades of manganese.-- Focus on the criticality of manganese to the U.S. Government and various potential end users.-- Continue the dialogue with potential off-takers that have shown an interest in the manganese metal and dioxide market.-- The elimination of the electrolytic cells by focussing on research and development of CMD could reduce the electrical requirements by up to 75- 80%.-- Reducing the amount of production (25 - 40,000 Ts/year) of manganese dioxide product potentially reducing capex for mining and processing.-- American Manganese's cost of production is one of the lowest in the world.
Review
1. 10,607 meters (34,800 ft) of reverse circulation drilling in 84 holes (2011 program) was completed in the North Chapin, Lakes/MacGregor area resulting in the following Ni43-101 resource at a 1.0% Mn cut-off: ------------------------------------------------------ Average Contained Resource (T) Grade Mn% Mn Metal (T)------------------------------------------------------------------------Indicated 62,201,000 2.3% 1,445,000------------------------------------------------------------------------Inferred 20,033,000 2.5% 506,000------------------------------------------------------------------------
Previous drilling and Ni-43-101 resource studies identified additional reported resources on the Maggie Mine/Shannon Mine/Loves/Hurley/Planche/South Chapin/Burro/Price and Priceless zones at a 0.9% Mn cut-off as follows:
------------------------------------------------------ Average Contained Resource (T) Grade Mn% Mn Metal (T)------------------------------------------------------------------------Indicated 145,575,196 2.98% 4,279,000------------------------------------------------------------------------Inferred 54,700,239 2.83% 1,547,000------------------------------------------------------------------------
