American Manganese Inc TSXV:AMY announced results of a preliminary feasibility study of its Artillery Peak Manganese Project in Mohave County, Arizona. The study is based on a probable reserve of 45 million tonnes grading 2.46% manganese with an average stripping ratio of 2.46:1 and a mine life of 21 years. Mine production is estimated to be 50,000 tonnes of electrolytic manganese metal (EMM) annually from a processing plant capable of treating 7,000 tonnes per day.
Based on an average EMM cost of $1.015 per pound, the study projects a pretax NPV of $91.2 million at a 5% discount rate, with a pretax IRR of 7.28% and a $477 million initial capital cost with a 10.3-year payback.
American Manganese President/CEO Larry Reaugh commented, “The project design capitalizes on a much better understanding of the character, controls and distribution of the mineralization, maximizing the overall utilization of the manganese resource within the contemplated mining area. The combined work produced solid representation of the commercial opportunity offered by developing the manganese deposits at Artillery Peak in the current rapidly escalating capital and operating cost environment. The Artillery Peak EMM production cost is estimated to be much lower than published Chinese production costs. The technical aspects for mining and processing for the contemplated project have been thoroughly addressed and significantly de-risked. I am pleased with the overall results and look forward to advancing the project to the feasibility level, leading eventually to a positive project development decision.”
Larry W Reaugh
or Connie Fischer
604.531.9639 x 110
by Kevin Michael Grace