American Bonanza (TSX: BZA) released the results of a Feasiblity Study today at their 100% owned Copperstone project in Arizona. Based on a gold price of $962/oz, the internal rate of return (IRR) is said to be 96.3%.
The study sets the Proven Reserves at 255,000 ounces of gold and Probable Reserves at 1,178 ounces. The plan shows these reserves can be mined over 6.3 years with a capital cost of only $17.74 million.
Brian Kirwin, President and CEO of BZA is quoted saying:
Copperstone has a very strong economic profile, significant infrastructure on-site, low capital costs, fast capital payback, a rapid permitting timeline, and excellent expansion potential near the proposed mine workings. Bonanza will stay focused on bringing Copperstone into production in 2010.
