Mr. Larry Reaugh reports

AMERICAN MANGANESE INC. REVIEWS LITHIUM ION BATTERY RECYCLING HIGH GRADE COBALT AND ELECTROLYTIC MANGANESE METAL OPPORTUNITIES

American Manganese Inc.'s management is currently reviewing opportunities within its present portfolio of intellectual and mining projects as follows.

Lithium-ion electric vehicle battery recycling

American Manganese is developing a new technology for the recycling of spent cathode materials used in lithium-ion batteries. The conceptual process of recycling these materials was based on adaptations of American Manganese's proprietary know-how and patented hydrometallurgical process for the recovery of manganese from low-grade resources. American Manganese has conducted scoping studies as a proof of concept to show that a popular cathode material, lithium cobalt oxide, could be leached using a reducing acid, and that the leached cobalt and lithium could be precipitated for potential reuse in remaking fresh cathode materials. The scoping study showed leach recoveries of more than 99 per cent for lithium and cobalt, and 99 per cent of the cobalt and 60 per cent of the lithium could be precipitated from the leach solutions in a single pass. American Manganese has filed a U.S. provisional patent application of the conceptual process under development.

Kemetco Research Inc. has commenced a phased technology development program with the goal of developing a complete flowsheet to maximize recovery of valuable cathode components while minimizing reagent consumption and addressing water balance in an environmentally friendly and economic manner. Research will be reported on as the company receives updates.

Lithium metal is the most expensive by weight of all the cathode materials, currently fetching $19.90 per pound or $42,090 per tonne. Cobalt is the next most expensive at $16.90 per pound or $37,242 per tonne (see press release dated Jan. 19, 2017). Cobalt has increased 70 per cent in value over the past year, with demand projected to exceed supply later this year.

New Hazelton, B.C., high-grade cobalt/gold property

American Manganese's high-grade cobalt/gold property (Victoria mine) located near new Hazelton, B.C., has seen limited historical production of 90 tonnes grading 2.77 per cent cobalt and 3.22 ounces per tonne gold. Two grab samples at the Victoria adit obtained by the company in 2007 graded 26.64 grams gold and 1 per cent cobalt and 41.9 grams gold and 1.1 per cent cobalt respectively.

The Victoria mine and showings of vein material consist principally of cobalt-nickel arsenide in hornblende gangue with glassy quartz and feldspar. Additional minerals include molybdenite, uraninite, apatite, sphene, allanite and rare scapolite.

The company has been approached by interested parties for the potential to joint venture this cobalt-gold project.

Artillery Peak, Arizona, manganese project and patent

American Manganese first acquired claims in the Artillery Peak manganese district in 2007. Recognizing that low-grade deposits of manganese were not economic, the company moved forward with research to develop a disruptive technology to produce higher-priced forms of manganese such as electrolytic manganese metal (EMM), electrolytic manganese dioxide (EMD) and chemical manganese dioxide (CMD). The company contracted Kemetco starting in May, 2009, to perform the research (note: the U.S. Bureau of Mines worked on the metallurgical process for approximately 50 years with limited success). Kemetco made the breakthrough and successfully completed the pilot plant testing in December, 2011. Tetra Tech vetted the process and used the results to design the EMM plant for the prefeasibility study completed in September, 2012.

The project is the most advanced manganese project in the United States. Over the past few years the company has reduced its landholdings (see press release dated Nov. 7, 2013). The remaining claims contain the best grades and thicknesses, including intersections of 7.23 per cent manganese over 6.09 metres (20 feet) and 4.02 per cent manganese over 27.44 metres (90 feet).

With the renewed interested by Tesla in rechargeable lithium manganese batteries in storage and electric vehicles, the company will be looking for interested partners to reinvigorate the CMD studies. The company has previously produced CMD from Artillery Peak ores and produced working rechargeable lithium-manganese batteries (see Dec. 6, 2012, press release). The company now holds patents in three countries, the U.S., China and South Africa, on its environmentally friendly green process.

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