American Bonanza Advancing Copperstone Mine Development

VANCOUVER, BC - American Bonanza Gold Corp. continues to advance Copperstone towards the mining stage and is pleased to provide updates for the 2008 programs. The 2008 projects underway at Copperstone include underground mine planning, negotiation of plant construction contracts, drilling to expand the gold resources in two recent discovery areas, and other preparations to commence mine permitting during 2009. A rapid permitting cycle is anticipated due to favorable site characteristics for mine development at this 100% owned Arizona project.
Mining and milling studies at Copperstone have shown significant progress. The mine planning studies are focused on optimizing mining extraction rates and pre-development mining. Milling studies have been focused on capital cost optimization and numerous bids have been obtained for milling equipment. The Company's Management and Directors determined that the recent gold discoveries should be drilled and contribute to the current study of Copperstone mining economics. These new gold zones have the potential to significantly expand the mine plan and improve the economic returns.
Planning is complete in preparation of drilling the South Pit and Southwest gold discoveries. These high grade discoveries have substantial potential to further improve the economic profile of the project. The current drill campaign is expected to consist of at least 15 core holes with a combined length of 7,000 meters. Drilling is expected to begin soon, and drill contracts are being sought, during which time routine reclamation of drill sites continues.
The drilling is designed to add ounces to current gold resource of 970,700 tonnes grading 10.7 grams per tonne gold (Measured and Indicated, another 189,600 tonnes at similar grade in the Inferred category), as previously announced. Thus far, exploration drilling to expand the resource totals 44 drill holes with a combined length of 13,177 meters (43,227 feet) and has encountered gold in seven target areas, with two high grade continuous discoveries.
The South Pit discovery is at the south end of the open pit from which over 500,000 ounces of gold were produced, and is south of the current high grade gold resource. The South Pit target has a known strike length of 500 meters, and is open along its entire length to the east and west.
The Southwest Target discovery is located approximately 1,000 meters southwest of the open pit and strikes approximately 20 degrees west of north (near parallel to the Copperstone Fault) and has an intermediate dip to the northeast (same direction as the Copperstone Fault). The zone remains open in all directions, and may represent the discovery of a new gold bearing structure similar to the Copperstone Fault which hosts the high grade gold resources.
The company's address is Suite 305 - 675 West Hastings St., Vancouver, BC V6B 1N2, (604) 688-7523, fax: (604) 681-0122, email: [email protected].