To view the 2013 Gold Production Chart, please visit the following link: http://media3.marketwire.com/docs/bza717i.pdf
-- 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.
-- 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
This news release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including but not limited to the expected increase in head grades, that concentrate grades will improve with optimization of the processing plant and increased tonnages, that changes to the gravity circuit will optimize recoveries, that the processing plant will adapt more readily to changing grades resulting in greater gold recoveries, that the Company will be able to continue increasing throughput to the processing plant up to design levels, the tons mined will continue increasing to design levels, the likelihood of profitable commercial mining, possible future financings, rates and performance of mine and mill production, ground conditions for underground mining, the granting of future key permits, estimated metal production and the timing thereof; and any capital and operating and cash flow estimates and operating costs is forward-looking information. Forward-looking statements or information also include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Mining exploration and development is an inherently risky business, and accordingly the actual events may differ materially from those projected in the forward-looking statements.