American Bonanza Gold Corp. - Copperstone - Overview (New)

Overview

Recently completed positive feasibility study indicates a robust economic profile including:
- Gold Production averages 46,000 ounces/year for first 3 years.
- Cash Production cost of US $415 per ounce produced.
- Capital Cost of US $17.7 million (includes indirect costs).
- Capital investment payback period of 13 months.
- Total Gold produced 231,000 ounces of gold.
- NPV of Base Case is US $51 million (after tax, discounted).
- IRR of Base Case is 96% return.
- Pre-tax Cash Flow of US $104 million (undiscounted, using spot gold price of US $1104 per ounce - December 28, 2009).
256,431 Ounces of Gold Proven and Probable Mineral Reserve - please refer to Resource page
313,183 Ounces of Gold Measured and Indicated resources - at a 10.35 grams per ton gold grade. - please refer to Resource page
144,892 Ounces of Gold Inferred Resources, which are in addition to the Measured and Indicated Resources - at a 12.21 grams per ton gold grade. - please refer to Resource page
Significant expansion potential identified: South Pit Gold Zone and Reserves area open to expansion.
Permitting expected to be completed during the fourth quarter of 2010.
Wholly owned property in a World Class Gold Province.

Qualified Person

The resource estimate was prepared by Jonathan Brown., M.B.A., C.P.G., a qualified person. The reserve estimate was prepared by Tom Buchholz, B.S. Eng - MMSA QPM, a qualified person. The estimates are effective as of February 2, 2010. Details of the key assumptions, parameters, and methods used to estimate the mineral reserves and resources, and information regarding the extent to which the mineral resources and reserves may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues is contained in a technical report entitled "NI 43-101 Technical Feasibility Report Copperstone Project, La Paz County, Arizona" effective February 2, 2010 and revised January 10, 2011, prepared for American Bonanza Gold Corp. by Dr. Corby Anders, Allihies Inc., MMSA QP, C. Eng FlChemE, Tom Buchholz, BS Eng. MMSA, Chris Pratt, LPG and Jonathan Brown, M.B.A., C.P.G.. To review this report in its entirety, follow this link. Mineral resources that are not mineral reserves to not have demonstrated economic viabililty.

* The information on the Copperstone Mine has been summarized from a technical report entitled "NI 43-101 Technical Feasibility Report Copperstone Project, La Paz County, Arizona" effective February 2, 2010 and revised January 10, 2011, prepared for American Bonanza Gold Corp. by Dr. Corby Anders, Allihies Inc., MMSA QP, C. Eng FlChemE, Tom Buchholz, BS Eng. MMSA, Chris Pratt, LPG and Jonathan Brown, M.B.A., C.P.G.. To review this report in its entirety, please follow this link.

The Corporation is focused on the development of a gold mine at Copperstone. Contact us should you be interested in any of our exploration properties.