NEW YORK American
Manganese Inc. has been forced to adjust the base case for the
feasibility of its Artillery Peak manganese project in Arizona,
leading to a negative net present value (NPV) for the
"Due to concerns raised by the
British Columbia Securities Commission, the company has agreed
to change the base case to the more conservative three-year
trailing (price) average," Vancouver, British Columbia-based
American Manganese said.
In its initial base case, the
company used a price forecast by the CPM Group which indicated
a $402.9-million net present value at an 8-percent discount
rate. Using the trailing average, the project now has a
negative net present value of $22.9 million at the same
discount rate and is therefore deemed not economic by the
securities commission, according to the company.
"Accordingly, the report will be amended to show there are no
mineral reserves for the project that meet the Canadian
Institute of Mining, Metallurgy and Petroleum definition and
consequently the mineral reserves for the project are
retracted," the company said.
However, a company executive
said the revision has not slowed the development of the
"Im still confident that the CPM numbers are correct,"
president and chief executive officer Larry Reaugh told
AMM, adding that the company might have a strategic
partner for the project by this fall due to strong interest
from the lithium-ion battery sector, which uses manganese
dioxide in its production process.