October 11, 2013
American Bonanza Suspends Operations at Copperstone Mine
October 11, 2013 - American Bonanza Gold Corp. (TSX: BZA) ("Bonanza" or the "Company")
is placing the Copperstone Mine in Arizona on care and maintenance
status until further notice. The Company has made this decision in order
to cut costs while it reviews operations with a view to improving
operational efficiencies, and while it seeks additional capital to fund
performance improvements in order to meet designed capacity of the
Copperstone Mine. Declining gold prices also factored in the Company's
decision to suspend mining and milling operations at this time.
While the suspension of operations may be considered a setback in the
Company's goal of achieving commercial production at Copperstone, the
Company believes it is necessary in order to achieve that goal.
Operating costs have reached unsustainable levels for various reasons.
The Company believes that with additional capital, upon the resumption
of operations the mine will perform at a consistent mine output rate and
mill throughput rate which will help reduce overall costs as the
Company moves forward to bring the Copperstone Gold Mine to design
The Company is in discussions with a number of
potential financing sources which may result in one or more financings
in sufficient amounts to enable the Company to bring production at the
Copperstone Mine up to design rates. The Company intends to continue
A longer-term objective of the Company
remains the substantial increase in mine production upon the resumption
of operations and delineation of the significant exploration potential
at Copperstone. The Company will endeavor to keep our shareholders fully
informed, on a timely basis, of our decisions and activities.
Bonanza is owner of the newly constructed Copperstone Mine in Arizona. For more information please visit Bonanza's website at www.americanbonanza.com.