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American Bonanza Gold (TSXV:BZA) (OTCBB:ABGFF) is Stock Pick of the Week Recommendation by J Taylor's Gold, Energy & Tech Stocks Report - Video Posted on

July 11, 2012 -

Vancouver, British Columbia, July 10, 2012 - Jay Taylor, editor of ""J Taylor's Gold, Energy & Tech Stocks"", featured American Bonanza Gold (TSXV:BZA) (OTCBB:ABGFF) as his recent stock pick of the week. has produced a ""video news alert"" which provides a brief summary of this report. If this link is not enabled, please visit and enter ""American Bonanza"" in the search box.
Jay recently visited the company's Copperstone Mine in southwestern Arizona, near the California border, where he spent time with several members of senior management and mine and milling operating personnel, and reported that he was highly impressed with the management team that CEO Brian Kirwin has assembled.
American Bonanza has, at last official count, a measured and indicated resource of 313,000 ounces of gold and an inferred resource of 256,000 ounces. The measured and indicated resource graded 10.3 grams per tonne, or approximately 1/3 of an ounce per ton. Over the first three years, average production is expected to be 46,000 ounces with cash costs od $415 per ounce. The prefeasibility results suggested an undiscounted cash flow over a 6.5 year mine life of $168 million at $1400 gold. The internal rate of return for this scenario was a very high 170.4%.
Taylor believes investors should realize that the likelihood of the life of the Copperstone Mine and/or its annual production doubling or tripling is more likely than not, assuming as Taylor does that the bull market in gold and its real price is still in its early days. Within weeks, American Bonanza should reach its current capacity of 450 tons per day, at which time this company should be generating significant cash flow. But management is already planning for a mill expansion to 700 tons per day, which Taylor expects will be implemented in 2013.
Management is assuming Copperstone will be up and running on its own very soon, and its already looking at its next project, which Taylor believes will be similar high-grade project with risk/reward metrics.
Jay Taylor summarized his report with the following comments, ""Assuming American Bonanza executes its business plan, this is exactly the kind of evolving gold producer I like for this gold share bull market of a lifetime. Companies that can develop strong cash flows will be in a position to prey upon their weaker brothers who may have developed deposits of merit but do not have the management talent to achieve profitable production.""
Jay also stated that upon returning home from his property visit, he acquired a reasonable large position, for him, in his retirement account.
The shares currently trade at $0.30 and with 201 million shares outstanding, is capitalized at $60 million.
For more information about American Bonanza Gold please visit their website at, or contact Jim Bagwell at 1-877-688-7523 or by email, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing short three minute videos based on news releases and research reports.
Barry Morgan, CFO

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Source: InvestmentPitch via Thomson Reuters ONE


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