NR 2018-08 (amended)
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NR 2018-08 (amended)
For Immediate Release
Euro Manganese Clarifies Chvaletice Manganese Project Mineral Resource
Update News Release
HIGHLIGHTS:
• Successful 2018 Drilling Program results in updated Mineral Resource Estimate with 98.3% of
Resource classified in Measured Category.
• Drilling Program confirmed outstanding consistency of manganese grade and mineralogy.
• Successful Metallurgical Testwork Program and Pilot Plant Test runs, indicating manganese
can be extracted from Chvaletice tailings using a combination of proven commercial
technologies.
• Testwork Program confirmed the proposed hydrometallurgical process can produce Ultra-
High-Purity Manganese Products meeting or exceeding customer specifications.
• Plan to build and commission a Demonstration Plant in 2019 to produce multi-tonne, Ultra-
High-Purity Manganese Product samples for customer testing and qualification.
• Project timeline remains on track, with Preliminary Economic Assessment targeted for release
in early 2019.
• Targeting production of both electrolytic manganese metal and manganese sulphate
monohydrate, focusing principally on Europe's rapidly emerging electric vehicle industry.
Vancouver, Canada (December 14, 2018) – Euro Manganese Inc. (TSX-V/ASX: EMN) (the "Company" or
"EMN"), at the request of IIROC and the ASX, wishes to clarify and provide additional disclosures in its
news release of December 12, 2018, entitled “Chvaletice Manganese Project Mineral Resource Update,
2018 Metallurgical Testwork Program Update and Preliminary 2019 Plans” in which it announced an
updated resource estimate ( "Resource Estimate ") for its Chvaletice Manganese Pro ject in the Czech
Republic, and provided an overview of its 2018 metallurgical testwork program ("Metallurgical Testwork
Program Update") and its development plans for 2019 ("2019 Plans").
Marco Romero, President and CEO of EMN, noted:
"We are extremely pleased with the outcome of the 2018 drilling program and the resulting updated
Resource Estimate for the Chvaletice Manganese Project, where 98.3% of the Resource was confirmed as
Measured Resources. This milestone will provide a solid foundation for detailed planning of the tailings
extraction and processing schemes, and drive the project economics in our upcoming Preliminary Economic
Assessment, which we currently expect to release in early 2019.
During our extensive 2018 Metallurgical Testwork Program and pilot plant tests, our in-house team made
significant progress in advancing its understanding of the Chvaletice deposit and in the planning and
design of a technically-viable process flowsheet. By recycling the Chvaletice waste, we are modelling in our
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PEA the proposed production of some of the highest purity electrolytic manganese metal and manganese
sulphate monohydrate, while setting the stage for compliance with very high health, safety and
environmental standards.
In 2018 we have seen a continuous stream of announcements and reports of important new developments
and investments in the lithium battery industry in Europe, North America and Asia. The Chvaletice
Manganese Project is strategically located in the Czech Republic, amidst a major emerging cluster of
electric vehicle plants that have started to serve local and export markets. This transformation of the entire
European auto industry is giving birth to an entire ecosystem of battery factories, precursor and cathode
makers, recyclers, and related battery raw materials supply chains."
Updated Chvaletice Manganese Project Resource
During the summer of 2018, EMN conducted a second campaign of drilling at the Chvaletice Manganese
Project (the "Project") with a total of 80 holes, totalling 1,509.5 m. The program included completion of
35 vertical and 19 inclined 100 mm diameter Sonic holes, totalling 1,409.5 m, to supplement 80 holes,
totalling 1,679.3 m completed in 2017 . An additional 26 mobile percussion drill holes, totalling 100 m,
were completed around the perimeter embankments of the tailings piles in areas which were not
previously accessed for sampling. The tailings material observed, sampled and analysed was generally
consistent in terms of total and soluble manganese grades, and mineralogy. The combined sampling and
analytical data set from the 2017 and 2018 drill programs total 3,188.8 m of drilling, which was utilized to
develop the updated Resource Estimate.
The updated NI 43-101 Mineral Resource Estimate has resulted in a reclassification of all tailings contained
in the three Chvaletice Tailings piles to Measured and Indicated Categories. The Project's total Measured
and Indicated Resources now amount to 26,9 60,000 tonnes, grading 7.33% total manganese and 5.86%
soluble manganese, as detailed in Table 1 below:
Chvaletice Mineral Resource Statement, Effective December 8, 2018
Tailings
Cell # Classification
Dry In -
situ Bulk
Density
(t/m3) Volume (m3)
Tonnage
(metric tonnes) Total Mn (%) Soluble Mn (%)
#1 MEASURED 1.52 6,577,000 10,029,000 7.95 6.49
INDICATED 1.47 160,000 236,000 8.35 6.67
#2 MEASURED 1.53 7,990,000 12,201,000 6.79 5.42
INDICATED 1.55 123,000 189,000 7.22 5.30
#3 MEASURED 1.45 2,942,000 4,265,000 7.35 5.63
INDICATED 1.45 27,000 39,000 7.90 5.89
TOTAL MEASURED 1.51 17,509,000 26,496,000 7.32 5.86
INDICATED 1.50 309,000 464,000 7.85 6.05
COMBINED M&I 1.51 17,818,000 26,960,000 7.33 5.86
NOTES:
1. Estimated in accordance with the Canadian Institution of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on
Mineral Resources and Mineral Reserves adopted by CIM council, as amended, which are materially identical to the Joint
Ore Reserves Committee Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012
Edition ("JORC Code").
2. The Chvaletice Mineral Resource has a reasonable prospect for eventual economic extraction. Mineral Resources do not
have demonstrated economic viability, and no Mineral Reserves have been defined for the Project.
3. Indicated Resources have lower confidence that Measured Resources. A break -even grade of 3.20% total Mn has been
estimated for the Chvaletice deposit based on preliminary pre -concentration operating costs of US$5.22/t feed, leaching
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and refining operating cost estimates of US$173/t concentrate, 63% recovery for magnetic separation derived from the
average total Mn recovery of 87.7% on the average head grade, 71% recovery for leaching and refining, and a metal price of
US$2.00/kg for 99.7% EMM (Shanghai Metals Market, Dec 2018). The commodity price for high purity 99.9% EMM is
expected to be higher.
4. A cut-off grade has not been applied to the block model. The estimated break-even cut-off grade falls below the grade of
most of the blocks (excluding 10,000 tonnes which have grades less than 3.20% total Mn ). It is assumed that mat erial
segregation will not be possible during mining due to inherent difficulty of grade control and selective mining for this deposit
type.
5. Grade capping has not been applied.
6. Numbers may not add exactly due to rounding.
Image 2: 2017 and 2018 Drill Programs Hole Layout.
Tetra Tech Inc. ( "Tetra Tech "), located in Vancouver, British Columbia, Canada , a leading provider of
consulting, engineering, program management, construction management and technical services
worldwide, were engaged to oversee the planning and execution of sampling and assaying, to prepare the
updated Resource Estimate for EMN's Chvaletice Manganese Project, to prepare the Technical Report in
accordance with National Instrument 43 -101 - Standards and Disclosures for Mineral Projects , and to
prepare the independent JORC Code technical report in accordance with the JORC Code, 2012 Edition.
2018 Metallurgical Testwork Program Update
From 2015 to 2018, EMN undertook a series of sampling, resource estimation and manganese
recovery test programs, including semi-continuous, locked-cycle processing of tailings in a pilot
plant. In parallel with the process studies, EMN conducted extensive environmental baseline
and mine planning studies. The main objectives of these test programs and studies were to
verify the findings of previous work, t o confirm the amount of recoverable manganese
contained in the Chvaletice manganese tailings deposit, to characterize its mineralogy and
grade distribution, and to establish an economically -competitive process flowsheet. This
process requires bringing toge ther proven, commercial technology that can be used for the
manufacture of high-purity, electrolytic manganese metal ("EMM" or "HPEMM") and high-
2017 Sonic Drill holes
2018 Sonic Drill holes
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purity manganese sulphate monohydrate ("MSM" or "HPMSM"), while meeting EMN's very
high health, safety and environmental standards, as well as those of the Czech Republic and
the European Union.
Metallurgical test work on field samples taken prior to the 2017 dril l program for mineral
resource definition has been reported in the Technical Report on Mineral Reso urce Estimate
for the Chvaletice Manganese Project with an effective date of April 27, 2018 , filed on SEDAR
on June 26, 2018.
A total of 25 composite samples, totalling 14.8 dry tonnes of tailings, were prepared from Sonic
drill-core samples taken in 201 7 and resulting metallurgical testwork results will be published
in the technical report being prepared in connection with the 2018 updated Resource
Estimate. Detailed chemical and physical analysis were conducted on a master blend sample.
The mineralogical characterization study included mineral component determination by
optical microscope, x -ray diffraction analysis, scanning electron microscopy and mineral
chemical phase analysis. Also, spatial variation studies of particle size, chemical composition,
total and soluble manganese and various impurities were conducted . The study verified the
previous findings indicating that approximately 80% manganese occurs in the form of
leachable manganese carbonate minerals and approximately 19% of the manganese occurs as
refractory manganese silicates. It was found that total manganese contents varied between
5.71 to 8.77% Mn, out of which 75% -85% of manganese is acid s oluble.
The Changsha Research Institute for Mining and Metallurgy ("CRIMM"), a division of China
Minmetals, and one of China's leading metallurgical research and development organizations,
with extensive experience in the design, development and operation of EMM and MSM plants,
was retained to conduct a multitude of qualitative and quantitative studies on behalf of EMN
and to advise on technology selection and adaptation, and to test these on Chvaletice tailings.
CINF Engineering ("CINF"), a division of Aluminum Company of China, one of China 's leading
design institutes and a highly-experienced designer and builder of EMM and MSM plants were
tasked with the oversight of the metallurgical testwork program and vendor equipment tests ,
design and evaluation of alternative HPEMM and HPMSM process flowsheets , as well as the
development of pre -feasibility level engineering, including 3-D site layouts, equipment
selection, as well as the development of capital and operating cost estimates .
Tetra Tech has been engaged since 2016 to oversee and evaluate the drilling, bulk sampling and resource
estimation, as well as all metallurgical testwork programs, engineering and cost estimation. The results of
this work are currently targeted for publication during Q1 2019 in a NI 43 -101 Preliminary Economic
Assessment ("PEA").
The test work included bench-scale optimization test work that established parameters for the
operation of pilot scale magnetic separation and manganese electrowinning plants operating
in semi continuous locked cycle mode. The pilot scale test work results were used by CRIMM
and CINF to verify process plant design parameters that have been used to calibrate
metallurgical simulation models of different manganese recovery flow sheets.
The following process steps were tested on Chvaletice tailings material, principally at CRIMM's
major R&D center In Changsha, China, and at its manganese research laboratory in Tongren,
China, a highly-specialized working industrial facility on the site of two adjacent HPEMM and
HPMSM commercial production plants:
• Pre-concentration of raw tailings using different high-intensity magnetic separators to
obtain a manganese concentrate;
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• Leaching of the manganese concentrate using sulfuric acid to obtain manganese sulfate
solution;
• Purification of manganese sulfate soluti on using multiple stage s of purification for the
removal of iron, phosphorus , heavy metals and other impurities to obtain a refined
pregnant solution;
• Selenium-free electrowinning followed by chromium-free passivation to obtain ultra-high-
purity, low-sulfur HPEMM flakes;
• HPEMM metal flake dissolution in dilute acid and secondary deep purification, followed by
crystallization and drying to obtain HPMSM crystals;
• Production of HPMSM directly from magnetic separation concentrate , in parallel with the
above described process, and
• Various process waste dewatering, washing, geotechnical and environmental
characterization studies.
Magnetic separation tests were conducted using two types of high -intensity magnetic separation
machines, a vertical ring type separator and a horizontal ring type separator. The se test results
indicated:
• Manganese recoveries vary from 76.7 to 94.3% of total Mn, averaging 87.7% Mn; and
• That magnetic separation can increase manganese content in the fe ed from 7.2% to
approximately 14% of total Mn, ranging from 12.0 to 15.4% of Mn.
Leaching tests were conducted to determine the optimal leaching conditions taking into account
the subsequent iron, phosphorus , heavy metals and other impurity removal steps. Optimal
leaching conditions were determined on the basis of dissolution temperature, retention time and
acid-to-feed mass ratio. On average, it was determined that approximately 75% of the manganese
can be optimally extracted by sulfuric acid leaching, with results ranging from 71.9 to 82.8% of total
Mn. CRIMM also confirmed that no crushing or milling is required prior to leaching.
The leach-solution was purified in two steps, with the removal of iron, phosphorus, heavy metals
and other impurities using purification reagents . The efficiency of these processes was
confirmed, resulting in a refined manganese -bearing solution suitable for the electrowinning
step.
Laboratory and pilot plant size electrodes were used for the electrowinning tests. The purpose
of these tests was to verify operating conditions that will result in good quality manganese metal
and low power consumption. After a series of tests, manganese metal with a purity over 99.9%
was produced with power consumption of 6200-6400kWh/tonne of metallic Mn , without
requiring the use of undesirable selenium dioxide, which is used to reduce the power
consumption of manganese electrowinning . The HPEMM that was produced met or exceeded
all known customer specifications.
The production of HPMSM from HPEMM derived from the previous steps was also tested ,
including manganese dissolution in dilute acid, followed by a two-step purification procedure ,
produced manganese sulfate monohydrate with a purity of over 99.9%. The HPMSM produced
met or exceeded all known customer specifications.
Targets for next testing steps include further verification of the main process components,
definition of design parameters for full -scale equipment and detailed investigation of side -
processes, some of which could result in further process optimization .
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Preliminary 2019 Plans
EMN is targeting the completion and release of a NI 43-101 PEA for the Chvaletice Manganese Project in
early 2019 and, subject to its acceptance by EMN's Board of Directors, to subsequently initiate a feasibility
study. Planning is underway to design, build and commission a demonstration plant in the Czech Republic
to provide bulk, multi -tonne finished product samples for customer tests and qualification. The
Demonstration Plant is also expected to serve as a testing and training facility for future operations. Once
the PEA is complete, EMN also expects to file a formal project description and notification with Czech
regulatory agencies and local communities. Following a consultative and statutory comment period, EMN
plans to file its Environmental Impact Assessment and related permit applications.
Resource Estimation Methodology, Sampling and Quality Assurance
Mineral Resource Estimation Methodology
The mineralization found in tailings at the Project was deposited by manmade processes following
grinding and flotation processes of black pyritic shale and is therefore not characteristic of a traditional
bedrock hosted manganese deposit. The material can be physically characterized as a compacted soil,
with varying degrees of particle sizes from clay to coarse sand. Mineralogy has been quantified by limited
x-ray diffraction (XRD) analyses, with resulting manganese bearing mineral phases identified as
rhodochrosite (and other Mn -bearing carbonates), spessartine (and other Mn -silicates); quartz was the
main gangue mineral, and pyrite was the main sulphide mineral.
The Mineral Resource Update for the three above ground deposits of historical tailings material was
completed using Leapfrog Geo v 4.4.2. The database used for the estimate was comprised of 3,188.8 m
of drilling, of which 3,088.8 m were completed using a Sonic drill and 100 m completed around the
perimeter embankments using a mobile percussion drill. A total of 1,484 samples were collected on 2 m
continuous intervals from drill core within the tailings material; non-manganiferous material in the upper
topsoil and lower subsoil were not sampled and are excluded from the resource tonnage estimates.
Contact surfaces were created as hard boundaries from these outer material intersections which form
fully enclosed volumes of tailings, within which the resource was contained. The data was assessed for
outliers which determined that sample capping was not required.
All samples were composited to two metres, to ensure equally weighted input to the model. Manganese
concentrations measured from lithium borate fusion and XRF were used to report total Manganese, and
concentrations measured from aqua regia and ICP/MS and AAS were used to report as proxy for soluble
manganese. Interpolation of these manganese grades was performed using inverse distance weighted
(exponent of three) methodology, using a horizontal search ellipse with major and semi-major axes of 150
m, and minor axis of 8 m. The search was limited to a maximum of two samples per drill hole and required
a minimum of two to a maximum of six samples in ord er to populate a block. The block model was
established as a sub-block model with parent blocks of 50 m by 50 m by 4 m and minimum subblocks of
12.5 m by 12.5 m by 2 m.
An in situ dry bulk density value was calculated for each sample based on the sample v olume measured
in the field, mass of sample received at SGS Laboratories in Bor, Serbia ("SGS Bor "), and the loss of
moisture measured during sample preparation and drying. The mineral resource estimate tonnage is
reported using the in situ dry bulk density.
The block model was validated and classified using CIM Definition Standards on Mineral Resources and
Mineral Reserves. A variance analysis on the block model determined that blocks supported from five or
more samples, within an average distance of 100 m a nd with the closest sample within 75 metres be
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classified as Measured Resources, and blocks with greater than three samples within average distance of
150 m be classified as Indicated Resources. No blocks were classified as Inferred Resource.
Sampling Collection, Handling and Analysis
The drilling program was designed in collaboration between EMN and Tetra Tech to provide a robust and
evenly distributed sample of the tailings deposits. All Sonic drill core was logged, weighed, sampled and
recovery estima ted in the field by GET S.r.o of Prague, Czech Republic. Samples were collected to
represent two-metre drill core intervals, except where lengths were adjusted to accommodate upper
topsoil or lower subsoil intersections, which were not included in the sample.
Drill core was split in the field longitudinally along the core axis with one quarter collected for geochemical
sampling, one quarter collected for testwork in Czech Republic, and the remaining half core was collected
and stored for further metallurgical testwork. All samples were clearly labelled and stored in vacuum -
packed and sealed plastic bags to preserve original moisture content and prevent sample deterioration.
Geochemical samples were contained in plastic buckets, inventoried and st ored in a locked facility in
Prelouc, Czech Republic, prior to being shipped to SGS Bor.
Upon receipt of the samples, the SGS Bor facility weighed the samples and manually homogenized the
wet sample using a slab cake method to collect a 500 g split for use in laser diffraction (LD-PSA) particle
size analysis. The remaining sample was then recombined, weighed again and dried at 105ºC. The dried
samples were homogenized using a riffle splitter , crushed and homogenized. A second 500 g split was
collected and pulverized to 95% passing a 75µm. SGS Bor conducted the first stage of analytical testing
from the pulp which included partial digestion using aqua regia with ICP/MS or AAS, and near total
digestion using four acids (nitric, perchloric, hydrofluoric and hydrochloric) with ICP/MS or AAS from 0.5g
aliquots, to measure concentration of 48 trace elements including soluble manganese and total
manganese, respectively. The remaining pulp was packaged and shipped to SGS Laboratories located in
Lakefield, Ontario, Canada, for the second stage of geochemical analysis. Upon receipt of the pulp
samples, SGS Lakefield proceeded to analyze the material using lithium borate fusion and x-ray diffraction
(XRF) for major concentration of major cation oxide, concentration of in organic sulphur and carbon using
LECO furnace, measurement of specific gravity by pycnometer, and for particle size analysis by LD-PSA.
SGS Bor also prepared a second pulp split for every tenth sample which was shipped to Act ivation
Laboratories ("Actlabs") located in Ancaster, Ontario, Canada, an independent umpire laboratory, as
discussed below. Actlabs completed trace element analysis by partial and near -total digestion using
ICP/MS and AAS, and major cation oxide analysis using lithium borate fusion and XRF.
Quality Assurance and Quality Control
EMN has designed and implemented Quality Control (QC) protocols to identify potential for improper
sample handling, analytical error and sample contamination. The protocol included insertion of field
duplicates, blank and certified reference samples in all drill holes, collection of sample preparation
duplicate samples from coarse rejects and pulp splits, and completion of an independent umpire
laboratory analysis program. Additionally, three holes w ere drilled in 2018 to twin holes completed in
2017.
All analytical certificates were delivered direct ly to both EMN and to Tetra Tech allowing Quality
Assurance (QA) assessments to be conducted by Tetra Tech. A database was compiled, and various checks
and measures were performed by Tetra Tech. No significant QA concerns were identified by Tetra Tech;
however, high variability was identified in manganese concentrations reported from the partial and near-
total digestion methods. This result prompted the determination that manganese reported by lithium
borate fusion and XRF was more reliable and was selected as the basis for total manganese grades for
development of the Mineral Resource Estimate. The compiled database was validated for use in Mineral
Resource Estimation.
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Qualified Person/Data Verification
The scientific and technical information included in this press release is based upon information prepared
and approved by Mr. James Barr, P. Geo, Senior Geologist, and Mr. Jianhui (John) Huang, Ph.D., P. Eng.,
Senior Metallurgical Engineer, both with Tetra Tech. Messrs. Barr and Huang are consultants to and
independent of EMN within the meaning of NI 43 -101, and have sufficient experience in the field of
activity being reported to qualify as Competent Persons as defined in the 2012 edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves, and are qualified persons,
as defined in NI 43 -101 - 'Standards of Disclosure for Mineral Projects '. Mr. Barr is responsible for the
mineral resource estimate and Mr. Huang is responsible for the metallurgical testwork results. Messrs.
Barr and Huang have also undertaken reviews of the quality and suitability of the underlying information
used to generate the resource estimation. Mr. Barr visited the property during the 2017 drilling program
and again during the 2018 drilling campaign , on July 30-31st, 2018, during which time he observed the
drilling, sample collection and preparation, sample logging and sample storage facilities.
In addition, technical information concerning the Chvaletice Manganese Project is reviewed by Mr. Gary
Nordin, a consultant to EMN and its Chief Geologist, and a Qualified Person under NI 43-101.
A Technical Report prepared under the guidelines of NI 43-101 standards describing the updated Resource
Estimate will be filed on SEDAR within 45 days of this release.
Forward-Looking Statements
Certain statements in this news release constitute “forward -looking statements” or “forward -looking
information” within the meaning of applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results, performance
or achievements of the company, its projects, or industry resu lts, to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements or
information. Such statements can be identified by the use of words such as “may”, “would”, “could”,
“will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”
and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achieved.
Such statements include , without limitation , statements regarding the continued evaluation and
development of the Project, the timing and completion of the PEA for the Chvaletice Manganese Project,
initiating of a feasibility study, building of the demonstratio n plant in the Czech Republic, filing of a
environmental impact assessment, related permit applications and a formal project description with the
Czech regulatory agencies and local communities, the growth and development of the high purity
manganese produ cts market and any other matters relating to the exploration and development of
Chvaletice Manganese Project.
Readers are cautioned not to place undue reliance on forward -looking information or statements.
Forward-looking statements and information involv e significant risks and uncertainties, should not be
read as guarantees of future performance or results and will not necessarily be accurate indicators of
whether or not such results will be achieved. A number of factors could cause actual results to diff er
materially from the results discussed in the forward-looking statements or information, including, but not
limited to, the factors discussed under “Risks Notice” and elsewhere in the company’s MD&A, as well as
the inability to obtain regulatory approvals in a timely manner; the potential for unknown or unexpected
events to cause contractual conditions to not be satisfied; unexpected changes in laws, rules or
regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the
company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of
exploration programs or studies to deliver anticipated results or results that would justify and support
continued exploration, studies, development or operations.