American Bonanza Gold Corp ABGFF

news

[zutfie]

American Bonanza Purchases Mining Equipment in Move to Become Owner-Miner

09:00 EDT Tuesday, October 11, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2011) -American Bonanza Gold Corp. (TSX:BZA)(OTCQX:ABGFF) ("Bonanza" or the "Company") is pleased to announce that it has purchased a mining fleet for the transition to owner-mining at its 100% owned Copperstone gold mine in Arizona. The mining equipment purchased includes drill jumbos, loader-hauler-dumpers, exploration and production drills, ore haul trucks, a rock bolter and other specialized underground mining equipment. Some of the mining equipment has already arrived at the Copperstone gold mine site with a significant number of items scheduled to be delivered by the end of this week, and the remainder of the mining fleet on schedule to be delivered to the mine site by the end of this month. This purchase of the mining fleet represents a major step forward in Bonanza's transition from contract mining to owner-mining. Bonanza anticipates a smooth transition to owner-mining and resulting improvements in the mining production rate and reduced costs associated with mining. Copperstone remains on track for a fourth quarter, 2011, mine and mill startup process, with the goal of achieving full production rates by the end of the year.

Bonanza and Mining & Environmental Services LLC (the "Contract Miner") have mutually agreed to terminate the Mining Agreement (previously announced on March 23, 2011) and Professional Services Agreement, effective immediately. Demobilization of the Contract Miner's fleet of mining equipment has begun, and this process is scheduled to be mainly complete by the end of this week or soon thereafter. With the addition of the newly acquired fleet of underground mining equipment, Bonanza will now become owner-miner of the Copperstone gold mine.

About Bonanza

Bonanza is nearing completion of the construction activities at the Copperstone gold mine, which will allow for re-activation of mining at the construction-stage Copperstone gold mine. Bonanza is well financed and has no debt. For more information please visit Bonanza's website at www.americanbonanza.com.

[Z06]

Sure would be nice to see a picture of all this new equipment.

[REE1]

I guess this might explain why there has been no news for months. They wanted to wait until they received all the mining equipment first.Market likes the news, just hit 54 cents. 

[agmetalhead]

Owning and operating your own mining fleet is NOT necessarily a good thing vs contract mining. All the overhead expenses for day to day operations are now firmly on our shoulders; breakdowns are costly and inventory of parts can be problematic with regard to scarcity and expense.  Instead of writing one check every month to pay the contractor for moving X amount of tons now we are

[Antennae1]

You should apply for a management position at Bonanza. If you got the job, then maybe we wouldn't see speculation like this: "...resulting improvements in the mining production rate and reduced costs associated with mining." . . .I mean, they shouldn't be speculating about costs... that's a job for experts on internet message boards.

[shakingmyhead1]

Some of the mining equipment has already arrived at the Copperstone gold mine site with a significant number of items scheduled to be delivered by the end of this week,I would imagine that they are giddy like kids at the mine right now,( so am I) just iching to get those toys working on the ore, I think we might be seeing a first gold pour very shortly now......(3 weeks?)....with the goal of