American Manganese Inc TSXV:AMY announced results from its Artillery Peak Deposit in Mohave County, Arizona. Highlights include 4.61% manganese over 15.2 metres (including 6.74% over 6.1 metres), 2.47% over 27.4 metres (including 4.31% over 1.5 metres), 3.1% over 21.3 metres (including 6.89% over 1.5 metres), 2.25% over 24.4 metres (including 4.25% over 1.5 metres) and 3.86% over 13.72 metres (including 5.83% over 6.1 metres). The deposit has a 2010 resource estimate of 92.8 million tonnes grading 3.27% for 6.7 billion pounds indicated and 107.2 million tonnes grading 3.76% for 8.9 billion pounds inferred.
President/CEO Larry Reaugh tells ResourceClips.com, “The Artillery Peak Deposit contains a 43-101 indicated resource of 6.7 billion pounds and an inferred resource of 8.9 billion pounds. We just completed a 10,700-metre drill program. Those results have been coming out now for several weeks and will continue to do so. I’m very happy with the most recent results. It looks like we’re going to have an increase in the indicated resource for sure. The area we’re earmarking for the initial open pit is pretty much where all these drill holes have come from, and it’s indicating a much thicker resource than we originally thought.
It depends on the permitting process, but we’re scheduling around mid-2014 for production.—Larry Reaugh
“We will have a resource study out as soon as all the assay reports are in. Our pilot plant testing is scheduled to begin next week; the prefeasibility will follow after that. And of course we have Tetra Tech on the project doing environmental studies and water studies at this moment. So there’s a lot happening.
“We’re looking forward to an exciting fall,” Reaugh continues. “It depends on the permitting process, but we’re scheduling around mid-2014 for production.”
“We’re very happy with the project’s progress. This is the best project I’ve ever worked on as far as the economics work out. It’s very robust. If you compared it to a gold deal, considering the size of the known mineralization, we’re undervalued. What’s happening with the metal itself, with the tightening supply in China—their supply is going to diminish. China is running out of carbonate ores within the country, and there have been some reports of losing up to a third to a half of production there. And of course that reflects on the supply side because they currently produce over 98% of all the electrolytic manganese in the world.”
He concludes, “Our preliminary economic assessment is saying $0.45 per pound. With inflation and everything, if it goes up to even $0.60 or $0.70 per pound that would still put us at half of what it costs China. So we’d be the lowest cost producer in the world.”
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Larry W. Reaugh
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by Greg Klein and Ted Niles