Copperstone Air Photo showing Target Zones & Development
| ||October 29, 2002|
American Bonanza Completes Agreement to Fund Exploration Properties
| ||AMERICAN BONANZA GOLD MINING CORP. ("the "Corporation") is pleased to report it has completed the previously announced option agreement on its wholly owned Gold Bar and Pamlico properties, both located in Nevada.|
American Nevada Gold Corp. (formerly Mask Resources Inc.) (Collectively "American Nevada") can earn up to a 50% interest in both the Gold Bar and Pamlico properties over a three year period, by making an initial cash payment of $107,500 and issuing 800,000 common shares of American Nevada and funding exploration expenditures of $3,600,000 over a three-year period. The Corporation has retained a back-in right to increase its interest to 70% from 50% at the conclusion of the three-year period by reimbursing American Nevada for 200% of its cumulative exploration expenditures.
The Corporation's President and CEO Brian Kirwin stated that this joint venture is in keeping with the Corporation's strategy of advancing, exploring and developing high-grade precious metal properties. "The funding to be provided by American Nevada over the course of the next three years will allow the Company to aggressively move towards its stated objective of developing its advanced stage exploration projects".
The Gold Bar project is in Nevada and is centered on the Main Gold Bar Open Pit, which operated from 1987 to 1994. The milling operation produced 485,200 ounces of gold. The target lies at depth where the "feeder structures" are expected to pass through the Roberts Mountains Formation, an excellent host for high grade, large, Carlin-type deposits similar to Meikle and Deep Star. Continued data processing is required to refine the target using 3-D software.
The Pamlico project is located in the Walker Lane gold trend of Nevada, and has received little modern exploration. The Corporation's results to date are very encouraging, having identified numerous very high-grade gold anomalies at surface, in the historic underground workings, and in drilling. Bonanza grade targets are currently drill ready. The Corporation is finalizing drilling permits at the Pamilco project and is finalizing the drilling plan, in anticipation of commencing the drilling program shortly.
Additional information about American Bonanza and its properties can be obtained at www.americanbonanza.com . For further information please contact Brian Kirwin, President and Chief Executive Officer (775) 824-0707 or Giulio T. Bonifacio, Executive Vice President and Chief Financial Officer (604) 699-0023.
AMERICAN BONANZA GOLD MINING CORP.
(signed) Brian Kirwin
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
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