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The Next Hot Metal
-MANGANESE-
Ken Reser
June 5, 2007
Over the last two or more years having written extensively about Molybdenum, I currently see a very similar pattern evolving in another sector, and for many of the same reasons. The next hot ticket mineral is going to be "Manganese" (Symbol-Mn). Manganese is a major Steel & Iron industry ferro-alloy component (the primary use of Mn) and a very strategic minor metal in an extremely wide variety of applications. Some of the more standard uses include the chemicals industry, dry cell batteries, fertilizers, feeds, glass making, paints, varnishes and medicinal uses etc. First recognized as an element in 1774 by Swedish chemist C W Shule, Mn was in 1882 found to be of key importance in the production of steel by one Robert Hadfield. Manganese having been long ago classified by the US Gov't and some other nations as a strategic metal during wartime has placed Mn production & exploration in varying degrees of importance over the last 100 years. Currently there appears to be no new Mn mines coming forward and after watching the price increases over the last few months, I believe there is now a severe shortage of production on the horizon. *Note* Today alone the Mn price took a hike of $1450 p/metric tonne to $5500 p/mt from $4050 p/mt yesterday. That is an increase of $1450 in ONE DAY. (Source- www.Indianmetals.com)

Price curve for past 30 days
Manganese Flake 99.7%min FOB China USD/mt

Price curve for past 12 months
Manganese Flake 99.7%min FOB China USD/mt
Charts: Courtesy Asian Metals- www.asianmetal.com

Earlier I mentioned a similar pattern evolving between Molybdenum (Mo) and Manganese (Mn). In that context I see "China & India as well as other emerging growth nations coupled with the subsequent booming price of Nickel, & factoring the rapid growth in Iron & Stainless Steel production all having a profound forward effect on Mn prices." Nickel is rapidly pricing itself out of many equations and more and more new applications are coming forward for metals like Mo & Mn. As we have seen recently, China in their quest to hoard metals and resources, has now placed a number of "export taxes AND quotas" on many metals. Export taxes for ores of manganese, cobalt, nickel, chrome and molybdenum (including concentrates and roasted moly oxide) will now be increased to 15% from 10%. Worldwide suppliers of size in the Mn markets are China, Russia, Ghana, S Africa, Gabon, Chile, Australia, Brazil & India. Here we may note that in what we consider the free world and stable government environments there are a few countries whose Mn mines I myself would not invest in. In the USA today there are no Mn mines currently in operation. Russia holds what many consider to be the two largest Mn deposits and China produces a reported +/- 42% of world production of Mn. NOTEWORTHY also is the fact that there are NO known substitutes for Mn in the Iron & Steel industry, and EVERY bit of Iron or Steel production needs Manganese to alleviate brittleness.

Only one other writer/analyst that I know of is currently researching and gaining rapid interest in Manganese and that is Mr. James Finch, Senior Editor of www.StockInterview.com James has done some very commendable, articulate and serious research work w/ numerous leading edge editorials on Uranium, & Molybdenum, including a very widely read book on Uranium as well. I asked him earlier today what he thought about Manganese in general. James had this to say:

"Our research is pointing to increased use of chrome manganese grades in stainless steel production. High nickel pricing is driving stainless steel manufacturers to make the switch. We saw this in an Allegheny Ludlum presentation earlier this year, suggesting the high nickel price would force the crossover to manganese. Outokumpu recently launched its LDX 2101 product - a duplex stainless, which heavily relies on manganese to do the job. In some applications, the market is moving away from the austenitics to duplex, ferritic and other grades. One report suggests chrome manganese production could jump by 50 percent over the next two years. As a result nickel chrome grades could lose 20 percent of their stainless steel market share."

I believe we will be hearing a lot more from James Finch on Manganese in due course and I personally will be following his unequaled research very diligently.

Manganese deposits are one of the more difficult ores to evaluate as in general they are small deposits and often times scattered over a large area. Deposits of Mn are known to exist on lake bottoms and ocean floor areas, which will for obvious reasons, remain there for generations to come. Many known deposits are not economically viable due to low concentration of Mn a/o small size coupled with impurities. So where to look? Or better yet what mining explorationist is already on the cutting edge of Maganese exploration?

ONE COMPANY AT THE FORE-FRONT

In typical mine-finder, leading the pack fashion, as with Molybdenum (Adanac Molybdenum Corp.) over 3 years ago, we once again see Mr Larry Reaugh taking the lead and paving the way. With more than three mines to his credit in his 40 years in the business and now a Goldmine in China (Goldrea Resources) plus the new Atlin BC, Ruby Creek Moly mine in the development and permitting stage, Mr Reaugh seems in many respects to have the lead in finding the next Manganese mine of size and scope. This relatively new junior company "Rocher Deboule Minerals" as per todays news release {link} www.rdminerals.ca/Pressrelease/07_0605.pdf has just expanded their scope from their Olympic Dam style project (IOCG) on the multi mineral 8051.07 hectare (19,896.7 acre) gold/silver/copper/cobalt & tungsten property located 9 km south of New Hazelton, BC. {See link www.rdminerals.ca/GeoReport_Rocher.pdf for further data on this project} to Arizona Manganese in the historic Artillery Range Mtns. The Manganese Properties encompass 90 unpatented lode mining claims on which are located several deposits and stockpiles that were worked sporadically from 1928 to 1952 ("Manganese Deposits of Western Arizona" in 1958 Information Circular #7843 (the "Information Circular" by L.L. Farmham and L.A. Stewart). The Information Circular describes the Artillery Peak area, measuring 8 miles by 3 miles as being generally recognized as containing one of the "largest resources of low grade manganese-bearing material in the United States".

Grab & Channel/Chip samples taken over last few weeks have shown assays from 2% to as high as 50% Manganese on the Rocher Deboule Artillery Peak claims. (See RD's latest news release linked earlier)

Another report I have states,

"The deposit at Artillery Mountains in Arizona has been operated from time to time during national emergencies. It has been estimated that the deposit contains approximately 175 Million Tons grading from 3 to 4% Manganese, with zones carrying values as high as 20%"(SME- Olsen, Bentzen, Presley)"

Earlier today I spoke w/ Larry Reaugh Pres/CEO of Rocher Deboule and asked him if he would comment w/ his views on Manganese and he had this statement for me:

"Less visable essential metals like Manganese which is required in every lb of iron or steel produced have been front page news in metal publications that are not on the majority of investor radar screens. This news deals with shortages and the rising prices of these metals. This creates tremendous opportunities for astute companies like Rocher Deboule to get in on the ground floor and acquire valuable assets in a short period of time. Manganese has benefited from a price increase of 450% in the past 5 months [$1450/T from $4050.00/t to $5500.00/t or to$2.50/lb today, as reported on Indian Metals website] For 99.8% Mn, Ferro & Siicate Mn are trading between .85 & .95cts/lb, Mn demand was up a incredible 14% to 11.8 million tonnes {25.96 billion lbs includes all states of saleable Mn from 30 to 99.8% pure } in 2006. Metal inventories and supply sources are rapidly depleting, strained and are unable to keep up with demand which will not be met for several years. The opportunity for profitably mining lower grade Mn deposits at bulk tonnage rates in North America has finally arrived."

As with James Finch's future commentaries on Manganese & Moly, I will be looking forward to Rocher Deboule's forth coming NI- 43-101 report on the Artillery Peak deposit & Mr Reaugh's habit of rapid progression of his projects. There has never been any amount of drilling done on these Manganese properties and none whatsoever in recent times. Pictures File of Manganese Property: {link} www.rdminerals.ca/arizona_photos.html For an online Smartstox interview done recently (Apr/07) with Larry Reaugh concerning Rocher Deboule's Hazelton IOCG Project see link: www.smartstox.com/interviews/rd.php

The IOCG (Olympic Dam) project now coupled with the Artillery Peak Manganese project currently underway and the fact that RD.H has only 20 Million shares o/s, gives me a sense of great potential that good things will unfold for Rocher Deboule over the next few months. I look forward to hearing of drills turning on both projects in the next while.

Rocher Deboule Trading Symbols - RD.H: NEX.V & PINK SHEETS: RDBHF

Company Website: www.rdminerals.ca


Ken Reser
Metals Research & Investor Relations Consultant:
ykgold@telus.net
Office- 403-844-2914

*Molybdenum News Only Website: Free Membership:

(Soon to include Manganese News as well)
http://finance.groups.yahoo.com/group/MOLYBDENUM_NEWS_Forum/

NOTE: If you wish to receive 'periodical' reports on Gold, Silver, Molybdenum, Manganese or companies involved in these aspects of mineral exploration and production thereof please email me to become a free subscriber.

Disclaimer: I am an independent Investor Relations & Research Consultant, currently employed by Goldrea Resources Corp, Adanac Molybdenum Corp. Molycor Gold Corp and NOT presently employed by Rocher Deboule Minerals Corp. I may own shares in these or other companies from time to time a/o hold options of said companies other than in Rocher Deboule (no options, but do own shares). This editorial is not a recommendation to own or buy shares of said companies as I am not an accredited investment adviser, nor were any fees paid for the writing of this editorial. KR.


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