mill
News Release
TSX Trading Symbol: BZA
Frankfurt Symbol: AB2
US OTC Symbol: ABGFF
American Bonanza Moving Mill to the Copperstone Gold Mine
October 5, 2010 - American Bonanza Gold Corp. (TSX: BZA) ("Bonanza") is pleased to report
that work is progressing smoothly at the recently purchased 700 ton per day milling and
flotation/gravity plant and building which is currently located in Calumet, Michigan. Disassembly is
nearly complete, and components are being organized into shipments to the 100%-owned high-grade
Copperstone gold mine in Arizona; and into shipments to a facility where refurbishing of some
components will be conducted. Transportation of the equipment is expected to commence during
October.
The purchase of the mill is expected to reduce the capital cost of the Copperstone project by
approximately $500,000 once transportation, refurbishing and construction are complete. The mill
was operated for less than one year and is in very good condition. It comes with a full set of
engineering drawings, which will accelerate construction timelines and reduce costs.
The mill includes a rod mill, ball mill, fume scrubber, flotation cells, cleaner cells, concentrate filter
drum, tank thickeners, water storage tank, concentrate ore samplers, cyclones, duplex gravity
concentrating jigs, the mill building, control panel and conveyor. The mill does not include a
crusher and crusher building, which Bonanza will purchase separately.
Photographs of the Copperstone milling, flotation and gravity plant during disassembly are available
for review at https://www.americanbonanza.com/s/Copperstone.asp?ReportID=141269.
About the Copperstone Gold Mine
The following highlights from the recent feasibility study entitled “NI 43-101 Technical Feasibility
Report, Copperstone Project, La Paz County, Arizona” dated February 2, 2010 (the “Study”) can be
viewed on www.sedar.com and www.americanbonanza.com, as previously announced in Bonanza’s
news release dated February 3, 2010.
The Copperstone Gold Mine is estimated to produce on average 46,000 ounces of gold annually for
the first 3 years, and have a capital investment payback period of only 13 months using a gold price
of US$962 per ounce. The 2010 feasibility study details a total capital cost of US$17.7 million,
including working capital, G&A startup, reclamation bonding, and contingencies. The feasibility
study estimates the cash production cost to be US$415 per ounce of gold produced.
The After Tax Net Present Value ("AT-NPV") of the mine is US$51.3 million and the Internal Rate
of Return ("IRR") is 96.3% in the base case using a future gold price estimate of $962 per ounce and
a 5% discount rate. At recent gold prices ($1250 per ounce on www.kitco.com during inter-day
trading on August 31, 2010) the AT-NPV is $84.9 million and a capital payback period of less than 6
months. The table below provides a range of economic results at various gold price