Drilling Expands The D-Zone at Copperstone

 

VANCOUVER, BC - American Bonanza Gold Corp. reported that it has drilled high grade gold on the southern edge of the D-Zone mineralization at the 100% owned Copperstone Project in Arizona. Drill hole 08CS-54 encountered a 6.1 meter mineralized zone within the Copperstone Fault with an average grade of 37.8 grams per tonne gold (1.1 ounces of gold per ton) approximately 60 feet south of the southern margin of the D-Zone. These drill results will likely expand the high grade mineralized material that will be targeted for mining during the first year of the mine life. The Copperstone project produced one-half million ounces of gold between 1987 and 1993 and Bonanza is currently planning the re-activation of mining on the project during 2010.

Mine development advantages for Copperstone are significant and should shorten the permitting schedule and reduce capital costs for the new mine. Copperstone is a modern previously mined site with a clean, non-sulfide bearing mineral resource. Existing infrastructure consists of a power line and substation, and three water wells, all sufficient for the new mine at Copperstone, along with an office, maintenance shops and a laboratory building. The current study by the Company is optimizing the mining and milling plan, along with capital and operational costs. High grade in the D-Zone mineralization that is scheduled for Year One production has already been exposed in a 600 meter decline. Bonanza's revised schedule for the current Feasibility Study now estimates completion during early September.

The South Pit Zone, the Southwest Zone, and the D-Zone have the potential to significantly extend the mine life and improve the economic returns. The potential for these gold zones, which lie outside of the current resources, to extend the mine life at Copperstone will be evaluated subsequent to the current economic study.

The Copperstone Property is located in western Arizona within the Walker Lane mineral belt where it intersects gold provinces in Southern California and Western Arizona. These provinces host a total known gold endowment of over 40 million ounces of gold.

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].