Click HERE to watch video
In addition to releasing a 3D Drill Tour animation of its huge Artillery Peak project in Arizona, American Manganese reported that it has commissioned a NI 43-101 compliant preliminary feasibility study for the project.
A previously reported preliminary assessment announced on August 9, 2010 showed that the conceptual project should be economically robust and could become “the worlds lowest cost producer of electrolytic manganese metal”.
Now the company has completed additional drilling and revised its NI 43-101 compliant resource estimate so that the Artillery Peak Manganese deposit is now estimated to contain an indicated resource of about 92.8 million tonnes grading 3.27% Mn (6.7 billion lbs contain Mn), and an inferred resource of about 107.2 million tonnes grading 3.76% Mn (8.9 billion lbs contained Mn).
“The preliminary feasibility study represents a major milestone in the project development process for Artillery Peak,” says Mr. Reaugh. “Wardrop will be intimately involved in the execution of the previously announced hydro-metallurgical pilot plant program so that the study can be completed by the 4th quarter of 2011.”
The Artillery Peak Manganese deposit is located in western Arizona and comprises 366 lode mining claims over 19 square kms (12 square miles). These claims comprise a number of past-producing mines.
Above ground, Artillery Peak has solid infrastructure already in place: Roads, and water all lay within the property boundaries. The Arizona power grid is located nearby, as well.
American Manganese has delineated a major resource in several deposits including the McGregor and Maggie Deposits.
Since acquiring the Artillery Peak project in 2007, more than 70 drill holes have been drilled on the project. This work in turn has inferred and indicated the largest manganese deposit in Southwestern United States.
These deposits contain an indicated resource of 92.8 million tonnes grading 3.27% Mn with an inferred resource of 107.2 million tonnes grading 3.76% Mn.
In addition to known resources the McGregor Deposit is open to the north, while the Maggie Deposit remains open to the south.
Mining operations at the McGregor deposit would commence at the existing face of the open pit with just 6 metres of overburden.
The brittle rock type and very low stripping ratio are largely responsible for the projected low operating costs on the project. The MacGreggor deposit has a strip ratio of 0.5 to 1 its neighbour, the Maggie Deposit has a stripping ratio of 1 to 1.
Additionally, both deposits are flat lying, further simplifying the open pit mining process. Cash costs are estimated to be just $0.44 per lb.
The latest NI43-101 Resource Estimate for the project calculates more than 6.69 billion lbs indicated and 8.9 billion lbs inferred manganese. At today’s Manganese price of $1.74 per pound, investors have due cause to be excited about American Manganese.
Disclosure: No Positions