American Bonanza Moving Mill To The Copperstone Gold Mine 

VANCOUVER, BC - American Bonanza Gold Corp. reported that work is progressing smoothly at the recently purchased 700 ton per day milling and flotation/gravity plant and building which is currently located in Calumet, Michigan. Disassembly is nearly complete, and components are being organized into shipments to the 100%-owned high-grade Copperstone gold mine in Arizona; and into shipments to a facility where refurbishing of some components will be conducted. Transportation of the equipment is expected to commence during October.

The purchase of the mill is expected to reduce the capital cost of the Copperstone project by approximately $500,000 once transportation, refurbishing and construction are complete. The mill was operated for less than one year and is in very good condition. It comes with a full set of engineering drawings, which will accelerate construction timelines and reduce costs.

The mill includes a rod mill, ball mill, fume scrubber, flotation cells, cleaner cells, concentrate filter drum, tank thickeners, water storage tank, concentrate ore samplers, cyclones, duplex gravity concentrating jigs, the mill building, control panel and conveyor. The mill does not include a crusher and crusher building, which Bonanza will purchase separately.

The Copperstone Gold Mine is estimated to produce on average 46,000 ounces of gold annually for the first 3 years, and have a capital investment payback period of only 13 months using a gold price of US$962 per ounce. The 2010 feasibility study details a total capital cost of US$17.7 million, including working capital, G&A startup, reclamation bonding, and contingencies. The feasibility study estimates the cash production cost to be US$415 per ounce of gold produced.

The feasibility 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.

The company's address is Suite 305 - 675 West Hastings St., Vancouver, BC V6B 1N2, (604) 688-7523, fax: (604) 681-0122, email: [email protected].