The company has not done the work necessary to verify the classification of the Historical Resources currently present at Gold Bar. The company is not treating the Historical Resources as NI43101 defined resources, but views these gold deposits as key geochemical anomalies to guide further exploration. Should the price of gold rise sufficiently, the company will undertake drilling and estimation studies to convert the Historical Resources into NI43101 defined resources. The historical estimates are not mineral reserves and do not have demonstrated economic viability and should not be relied upon. The Historical Resources currently in place at Gold Bar were prepared by companies other than the company; they were estimated by Atlas geologists in 1996. The Historical Resources were estimated by Atlas Precious Metals Inc., were believed to be reliable at the time, and were prepared to industry standards at the time, and are relevant today as they were then. Atlas at the time of the announcement of these resources did not state the methodology used to estimate the resources. The Historical Resources are not NI43101 classified, although the company believes they are similar to the NI43101 classification of "Inferred" resources. The Historical Resources are the most current such estimates available to the company.
The Gold Bar Project is the site of previous, recent, modern, open pit gold mining. For that reason, all environmental permitting, legal, title, taxation , socio-political, and marketing issues at the site have been successfully overcome in the recent past. The site has recently been permitted for a much larger operation that any potential mine that may be constructed in the near future. Title is held through un-patented mining claims purchased by the company; these claims are in good standing. No legal issues that appear to compromise the potential of the property are known. Taxation system is favorable to mining. Nevada hosts a very large modern gold mining industry. The local socio-political climate appears favorable to development of a gold mine. The locality is remote, rural, pro-jobs and pro-mining. Gold, the product of a contemplated mine, is a very liquid product that can be marketed very easily and directly.
As has been previously announced, the qualified person for the "Geological Report on the Nevada Properties of Bonanza Gold Inc" (now American Bonanza Gold Mining Corp.), which lists the Historical resources at Gold Bar is Gerald F. McArthur, FGAG, PGeo.,self-employed as an independent Consulting Geologist, whose address was 11135 Monroe Drive, Delta, BC.
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