An Emerging Gold Producer in Arizona (Debt and Hedge-free)

313,000oz Au (M+I) of > 10 g/t

Free
Message: Copperstone Gold Mine Progress for June 2013

American Bonanza Gold Corp.

TSX : BZA
OTCQX : ABGFF


July 17, 2013 19:29 ET

American Bonanza Provides Copperstone Gold Mine Progress for June 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 17, 2013) - American Bonanza Gold Corp. (TSX:BZA)(OTCQX:ABGFF) ("Bonanza" or "Company") is pleased to announce progress at the 100% owned Copperstone gold mine in Arizona during June 2013.

A total of 1,224 ounces of gold were produced during June with an increase in the mill feed grade to 0.154 ounces of gold per ton. This gold production represents the highest gold produced in one month at the Copperstone Gold Mine, as the operation continues to progress toward designed production rates.

Production Summary (see below for detailed breakdown of figures)
Development Mining January
2013
February
2013
March
2013
April
2013
May
2013
June
2013
Zones < 4 7 6 5 4 3
Development mined 146 t/d 253 t/d 167 t/d 291 t/d 399 t/d 311 t/d
Ore Mining
Total rock mined 463 t/d 562 t/d 474 t/d 622 t/d 766 t/d 623 t/d
Ore mined 317 t/d 308 t/d 347 t/d 331 t/d 367 t/d 312 t/d
Rounds per day mined 5 4.3 5.2 4.9 5.2 5
Ore Processing
Ore processed 322 t/d 315 t/d 333 t/d 346 t/d 349 t/d 313 t/d
Mill recovery 82% 86% 80% 81% 89% 85%
Concentrates
Gravity concentrate 15 Oz/t 47 Oz/t 34 Oz/t 30 Oz/t 43 Oz/t 60 Oz/t
Flotation concentrate 23 Oz/t 30 Oz/t 18 Oz/t 27 Oz/t 21 Oz/t 28 Oz/t
Gold produced 520 Oz 878 Oz 670 Oz 815 Oz 1,041 Oz 1,224 Oz

Concentrates

1,224 ounces of gold were produced during June, comprised of 381 ounces of gold contained in flotation concentrate and 843 ounces of gold in gravity concentrate.

Ore Mining

  • During June, ore was mined from four mining faces in three primary zones in the larger D-Zone.
  • Total ore production was 9,362 tons which was down from the mine's ore production during May (11,368 tons), but higher grades were achieved as a result of the new mine planning activities and greater focus on geological and grade controls for the mining.
  • The mine performed at an average of 5 rounds of mining progress per day achieving 421 feet of mined ore.
  • The Mining and Geology teams continue to work effectively together as part of the overall mine planning focus to improve and maintain ore grade and tons. Two new additions to the geology team were made during June in order to support the 24 hour underground geology program. Further additions are anticipated during July and August.
  • Over 1,036 feet of underground detailed test drilling was completed during June as part of the new mine planning.

To view the 2013 Gold Production Chart, please visit the following link: http://media3.marketwire.com/docs/bza717i.pdf

Development

  • During June, two main areas were developed towards potential new high-grade ore zones. Completion of these development areas will provide a significant increase in available ore headings, expected during August, and it is anticipated that these additional ore headings will allow for increased ore production from the mine.
  • Development footage increased to 737 feet in June (an increase of 5% from May).
  • Increasing backfilling continues to be a priority. Efforts have been successful to increase productivity through batch mixing, and through improved utilization of haul trucks from the mix site to the fill site. Alternative backfilling methods are currently being investigated.
  • Drilling is expected to commence in the C-Zone shortly. During June, the drill bay was excavated and air, water and power services were extended to the area. An initial total of 5,900 feet of drilling is planned to refine the model of the C-Zone prior to mining.

Ore Processing

  • The mill feed grade in June increased to 0.154 ounces of gold per ton, up from 0.107 ounces per ton during May.
  • Milled tons were down to 9,409 tons during June (during May, 10,393 tons were milled) due to repairs being carried out on the secondary cone crusher and the ball mill. This also reduced recoveries slightly to 85%. The repairs were quickly identified and resolved.

As a point of clarification, and as previously announced in a press release dated June 11, 2013, although Bonanza has received the requisite approvals to raise up to $10 million, Bonanza is currently engaged in raising up to $5m by way of a private placement for funds to support capital expenditures on equipment and an inventory of spare parts as well as a contingency fund of $1.5m to bring the mine to design production rates.

Mr. Brian Kirwin, President & CEO, commented: "Excellent team work between the mining, geology and engineering teams, and the new mine planning procedures, are contributing to steadily increasing ounces of gold produced on a monthly basis. Development mining progress towards the C-Zone is also anticipated to allow for higher ore mining rates in the near future. It is expected that production increases will accelerate further as the recently announced financing will provide additional working capital that should help improve productivity."

Mine and mill performance for the month of July will be announced towards the end of August.

Doug Wood, P. Geo the Vice President of Exploration of the Company, is the "qualified person" as defined in NI 43-101 who has reviewed and approved the technical information in this news release.

About American Bonanza Gold Corp: Bonanza is operating the newly constructed Copperstone gold mine in Arizona. For more information please visit Bonanza's website at www.americanbonanza.com.

AMERICAN BONANZA GOLD CORP.

Brian Kirwin, President & Chief Executive Officer

Share
New Message
Please login to post a reply