American Bonanza – Focused on Developing Advanced Stage Gold Production in Arizona

American Bonanza Gold Corp. is developing and exploring gold projects in pro-mining areas of Canada and the United States. The main objective is to develop the advanced stage 100% owned Copperstone gold property in Arizona where a feasibility study is currently underway with the goal of achieving production by 2010.

Highlights

  • Positive Feasibility Study for Copperstone Project
  • IRR 96%
  • Low capital cost, fast payback
  • Permitting in process

Property Summaries

COPPERSTONE – ARIZONA

Copperstone is a past producing gold mine with significant infrastructure already on site. Bonanza is focused on re-activating the mine based on the recently release feasiblity study.

The study estimates production on average 45,891 ounces of gold annually for the first 3 years, and have a capital investment payback period of only 13 months. The Study details a total capital cost of US$17.74 million, including working capital, G&A startup, reclamation bonding, and contingencies. The study estimates the cash production cost to be US$415 per ounce of gold produced.

The net present value of the mine is estimated at $51 million and the internal rate of return (“IRR”) is 96.3% gold price estimate of $962 per ounce and a 5% discount rate. The Study results indicate a total of 256,430 ounces of gold can be mined from current known diluted Proven and Probable Mineral Reserves during the 6.3 year mine life at Copperstone.

OTHER PROPERTIES

Bonanza also has a portfolio of gold properties in North America at different stages of exploration.

Fenelon and La Martiniere properties in Quebec are in the prolific Matagami mining district

Gold Bar project in Nevada has historic resources.

Northshore Property on the Hemlo trend in Ontario with historic drilling showing gold zones open in several directions.

Management

  • Brian Kirwin – President & CEO – Former Vice President, Exploration of Vengold 1997-2000; 1990-1997 Placer Dome Inc. in various Senior roles. M.Sc. Mineral Exploration with over twenty years involved in international exploration evaluating deposits, mines and investment conditions worldwide. Credited with three satellite deposit discoveries on advanced projects in Nevada.
  • Giulio T. Bonifacio – Director – Mr. Bonifacio is a professional accountant with over 25 years in senior executive positions in the mining industry with Getty Resources Limited, TOTAL S.A. & Vengold Inc. Track record of raising equity and project capital for projects of merit. Extensive experience and knowledge in areas of corporate finance, securities matters, project finance and mergers & acquisitions. Initial Founder & CEO of Nevada Copper (TSX:NCU)
  • Robert McKnight – Director – Professional Engineer and MBA with over 25 years of experience in the resource business with a wealth of knowledge in project finance, mergers and acquisitions, feasibility studies and valuations. Vice President and Director of Selwyn Resources Ltd. And Driector of an indirect Guyana subsidiary of StrataGold Corporation since February 2004; Manager, Financial Services of AMEC Mining & Energy September 2003 to January 2004; Vice President of Pincock Allen & Holt Ltd. from 1998 to 2001
  • Ronald K. Netolitzky – Director – Ronald Netolitzky has a wealth of experience in the mining industry and has achieved exploration success on three major gold deposits which have subsequently been put into production: the Snip, Eskay Creek and Brewery Creek mines. He was chairman of Viceroy Exploration Ltd. until its recent acquisition by Yamana. Previously he was Chairman of Viceroy Resources Corporation, after serving as its President and Chief Executive Officer. Mr. Netolitzky is also the former Chairman of both Loki Gold Corporation and Baja Gold Inc.
  • James Bagwell – Director – James F. Bagwell holds a B.Sc. degree in Economics and Business Administration. He is a business executive and entrepreneur with a career spanning over 38 years. He has been involved in many new company formation, management, financial and as an investor in industries including retail, wholesale, manufacturing, real estate, mining, farming, medical, and charitable groups. He is currently serving as a director to MIT Holding. He is also a partner with ABBA Corp. and Viking Development Partners.
  • Joe Chan – Vice President, & Chief Financial Officer – Mr. Chan is a professional accountant with over 25 years of accounting, administration and system experience in the mining industry. From 1992 to 2002, Mr. Chan held various positions with Teck Cominco Limited including 6 years as Controller for its wholly own subsidiary Quintette Operating Corporation and four years in a senior financial role for its US $2.5 billion Antamina copper project in Peru. Mr. Chan has served as Controller for various public companies, including International Taurus Resources Inc., since 2003.
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