Copperstone Air Photo showing Target Zones & Development
| ||November 20, 2002|
American Bonanza Mobilizes For Underground Program at Copperstone
| ||AMERICAN BONANZA GOLD MINING CORP. (the "Corporation") is pleased to report it has resumed exploration and development activities at its Copperstone Project in Arizona. The Corporation owns 100% leasehold title to Copperstone, subject to a sliding scale royalty payable to the lessor, currently a 1% royalty.|
Mining Contractor Mobilization
An underground mining contractor has been selected by the Corporation, and has begun mobilizing personnel and equipment to site. Dewatering of the existing underground decline will commence shortly, and upon completion of the dewatering program, drilling, blasting and mining operations will begin, extending the decline to the bonanza grade D-Zone target area.
Discussion of the Underground Program
The existing decline lies 500 feet (150 metres) south of the first target within the D-Zone, which lies at the southern end of the D-Zone. This first target is the mineralized interval within core hole C96-19, which was drilled from surface and contains 10 feet (3.1 metres) of mineralization grading 5.3 ounces of gold per ton (182 grams of gold per tonne), as previously announced.
The objective of the Copperstone decline project is to establish underground infrastructure for subsequent exploration and development programs. The initial goal will be detailed drilling and sampling from underground to better define the D-Zone mineralization. A number of development alternatives will be examined by the Corporation upon completion of this work including extraction of mineralized material for processing at an existing plant, or construction of a small plant on-site to process the mineralized material from the D-Zone. A third alternative is to continue driving and drilling activities to convert D-Zone, C-Zone and other resource mineralization to reserve level definition. This would lead to feasibility studies to investigate the economics of constructing a larger processing plant on-site with the purpose of mining and milling the resource mineralization described below, once converted to reserves.
MRDI Canada, a division of H.A. Simons Ltd., ("MRDI") an independent mine engineering firm was retained by the Corporation's predecessor company during 1999 to assist in a scoping level evaluation of an underground mine at Copperstone, as has been previously announced. Exploration drilling on the project outlined four zones of mineralization defined as the A, B, C and D zones with gold mineralization occurring principally within the Copperstone Fault. As has been previously announced, the scoping study evaluated the underground mine development of only the C and D zones, and estimated a global geological resource for the C and D zones that exceeds 2.0 million tons at an average uncut grade of 0.58 Au opt, containing over 1.2 million ounces of gold. This resource includes a mine design resource of 827,400 tons at a cut, diluted grade of 0.56 opt Au (459,500 ounces Au).
The report was completed prior to NI43-101 and was prepared to industry standards and is relevant and reliable today, as it was in 1999. The report estimates a geological resource which is the equivalent of an inferred resource as defined by NI43-101. The report estimates a diluted, recoverable resource included in the mine design plan, which is the equivalent of an indicated resource by NI43-101. The indicated resource is contained within the inferred resource.
The Corporation's President and CEO Brian Kirwin stated that "the Copperstone decline program is a major milestone in Corporation's strategy of exploring and developing high-grade gold properties. The decline program is the next critical step in bringing Copperstone into production. Subsequent objectives include drilling to convert resources to reserves, drilling to explore the potential of the footwall structure parallel to the Copperstone Fault, and bringing the project into production as soon as possible."
About American Bonanza
The Corporation is engaged in the acquisition, exploration and development of high grade gold properties. The Corporation's innovative metallogenic techniques developed at considerable expense represent state-of-the-art tools for modern exploration in the Great Basin of Nevada and other areas. The Corporation's metallogenic techniques have involved technical pioneering in terms of geological data analysis, hardware and software applications and will be the catalyst for future corporate growth.
Additional information about American Bonanza and its properties, including a plan map of the D-Zone at Copperstone, 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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