American Manganese Inc.

American Manganese Inc.

February 15, 2012 11:00 ET

American Manganese's Hydrometallurgical Process a Promising Means of Recovering Low-Grade Manganese: Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2012) - American Manganese Inc. (TSX VENTURE:AMY)(PINKSHEETS:AMYZF)(FRANKFURT:2AM) is pleased to announce the release of a new independent report validating the revolutionary hydrometallurgical process to be used at its Artillery Peak project in Arizona.

The report titled "American Manganese's Clean Extraction Process" and authored by cleantech analysis firm Kachan & Co. outlines the hydrometallurgical process and assesses the probability of American Manganese becoming the lowest cost producer of electrolytic manganese metal worldwide. "Kachan was commissioned to do an independent assessment of our hydrometallurgical process. Its findings illustrate how American Manganese has developed one of the most efficient models of mining low-grade manganese ore and producing low cost, high grade electrolytic manganese metal," said Larry Reaugh, President and CEO of American Manganese.

"On paper and in pilot, American Manganese's hydrometallurgical process is promising," said Dallas Kachan, Managing Partner, Kachan & Co. "The near closed loop nature of the process appears to result in high grade electrolytic manganese metal with little environmental impact and at a low cost. Proving the process at scale in the field will be the company's biggest challenge, but early indications are encouraging."

American Manganese's unique hydrometallurgical process, using commercially available equipment, maintains a low cost, low energy output while retaining a recovery rate of 92-93%% electrolytic manganese metal at a purity of over 99.7%. Heat produced from the burning of sulphur to make sulphur dioxide essentially balances out the required amount of energy for the hydrometallurgical process excluding electrolysis. American Manganese Inc.'s process is based on treatment of low grade manganese, to produce 141 metric tonnes of electrolytic manganese metal and 366 metric tonnes of anhydrous sodium sulphate by-product, which is also a saleable resource.

"Traditional extraction methods, such as roasting, aren't commercially viable for low-grade deposits, since they are very energy intensive, sometimes reaching temperatures of up to 1000°C," said Reaugh. "Our refinement process eliminates the costs, and environmental impacts related to such methods."

Highlights of the Kachan & Co. report include:

  • Detailed analysis of the patent pending hydrometallurgical process
  • Feedback from mining industry experts
  • Summary of the electrolytic manganese market
  • Analysis of American Manganese's strengths and weaknesses and probability of success
  • Outline of environmental impacts

"To have a net positive report published by a leading cleantech analysis firm supporting our unique hydrometallurgical process is a huge success for American Manganese," said Reaugh. "We are encouraged to continue to work towards becoming the lowest cost producer of electrolytic manganese metal in the world."

An abstract of the report is available for free download from the American Manganese website. A full copy of the Kachan report is available for purchase here: Kachan & Co. was commissioned by American Manganese for the independent research and publication of the American Manganese's Clean Extraction Process report.

About American Manganese

American Manganese (TSX VENTURE:AMY)(PINKSHEETS:AMYZF)(FRANKFURT:2AM) is a publicly traded junior mining company located in White Rock, British Columbia. In 2007 the Company began work on the Artillery Peak project in Arizona, the largest known low-grade deposit of manganese in the southwestern United States, and the first new manganese producer in North America. It has patented a new environmentally-sound extraction process with reduced energy and water requirements intended to deliver low-cost, high-purity electrolytic manganese metal.

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