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American Manganese Pilot Plant to Produce Low Cost EMM

American Manganese begins pilot plant testing for low cost EMM production

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Welcome to another episode of resourceINTELLIGENCE’s inSITE report.  This is a very special episode for investors who are seeking to broaden their understanding of mining processes while taking a peek at one of the foremost electrolytic manganese (EMM) plays in modern history—American Manganese (TSXV: AMY). 
American Manganese—with the help of Kemetco Research and some very creative thinking—have managed to produce what could be the lowest cost EMM in the world.  Today we’re going to be visiting the pilot plant where resources from American Manganese’s Artillery Peak project in Arizona is processed into EMM and EMD.  It’s a giant, patent-pending-leap forward for the company, which has manganese resources of 14.9 billion pounds indicated and 3.5 billion pounds inferred. That’s a lot of manganese. This is also a very big deal considering that manganese is the 4th most consumed metal in the

To some investors, “grade is king”, but not so for American Manganese. Ironically, the company has unlocked a way to produce manganese metal from low-grade resources at a lower per pound cost than just about any high grade deposit in the world.To do that, American Manganese’s CEO, Larry Reaugh, hired Kemetco Research out of Vancouver, BC, to solve an age old problem: How to create a closed circuit process where water and power are recycled rather than wasted.Kemetco’s breakthrough, it turns out, is up to 12.4 times (or 1,139%) more energy efficient in its water recovery than conventional methods in low-grade manganese mining. This dramatically lowers the overall cost of production.THE KEMETCO PROCESS: Up to 12.4 times more energy efficient.
This low-cost process includes several steps that use existing technologies and one high tech step that leads to incredible cost savings.
First the resources from the Artillery Peak project—which is already very brittle or friable—is crushed. Then in the plant, the metals are leached from the crushed resources… the resulting solution is thickened and solid waste is separated from the metals solution.
The solid waste is then rinsed and cleaned in the Counter Current Decantation (NASDAQ:CCD) process while the mineralized or Pregnant Leach Solution (PLS) is purified, mixed with sodium carbonate. Finally the manganese metal is consolidated into pure manganese plates in an electrowinning circuit.
You’d think that was the end, but it’s not, because this is where the groundbreaking, cost-saving stuff begins: The remaining sodium solution contains a lot of water that needs to be removed at very high heat—very expensive and very wasteful.
The Kemetco process removes the salts from the water by lowering the temperature and then forcing the remaining solution through a nanofiltration system. This leaves just crystallized sodium sulfate, which can be sold for about $100 per tonne, and sulfur dioxide and water, which are recycled in the process. So, not only does it cost less, but the Kemetco Process actually generates revenues from the process of recycling water.
American Manganese (TSXV: AMY) is truly a value play if there ever was one: The company’s trading range is about $0.50 to $0.60 and yet it has billions and billions of pounds of recoverable manganese metal. EMM is worth $1.80 per pound. With it’s patent-pending production methods, It will cost the company as little as $0.44 per pound to recover it, which is a fraction of most competitors’ operating costs. Do the math: that’s a profit potential of about about $1.36 profit per pound.
Please note: This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.

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