American Bonanza Gold Corp

Previous Exploration

Previous work on the Northway portion of the property includes a regional AEM helicopter-borne survey totaling 2,440 line-kilometres, 100-metre-grid ground-magnetic and HELM surveys and a 400-metre-spaced IP survey. Seventy reverse circulation drill holes and 145 diamond drill holes totaling 29,000 metres have been completed. Five zones of gold mineralization, related to volcanic-sedimentary rock contacts, have been identified.

Kerr Addison conducted geophysical surveys over portions of the Noyon property as early as 1985. Two reverse-circulation overburden-drilling programs (113 holes) and 18 diamond-drill holes (3,539 metres) have been completed.

Cyprus calculated a Northway property "geological resource" of 18.2 million tonnes grading 1.48 grams of gold per tonne. From context, it cannot be determined if this "geological resource" is equivalent to any NI 43-101-compliant resource. This information is presented only in a historical context and should not be relied upon by the public. Preliminary metallurgical tests recovered 91.7 percent of the gold in a flotation concentrate. Two direct cyanide tests recovered 84 and 54 percent of the gold but only with a fine grind.

Work has not progressed sufficiently on the Noyon portion of the property to calculate a resource. However, several high-quality drilling targets have been outlined with geochemical and geophysical surveys. Sampling of the basal till at bedrock, which was encountered during reverse-circulation drilling, has located areas of elevated gold-grain counts that coincide with geophysical anomalies.