SOURCE: Bonanza Goldfields Corporation

Bonanza Goldfields Corporation

October 18, 2012 08:00 ET

Bonanza Goldfields Announces Plant Purchase and Production Timeline

PHOENIX, AZ--(Marketwire - Oct 18, 2012) - Today Bonanza Goldfields Corp. (PINKSHEETS: BONZ) announces it has purchased and received shipment of an Alaskan-25 (placer ore processing plant) manufactured by Goldfield International Inc. and expects to be in full production by November 1, 2012.

"This plant purchase marks the implementation of the first phase of our multi-phase production plan which we expect will begin in earnest by November 1, 2012. The water reservoirs that support this plant have a capacity of 1.3 million gallons, which we feel is more than adequate to support our first phase of production with the Alaskan-25. We have an experienced world class production team in place that provides us the wherewithal to implement our production plan within 30 days of securing financing. Our management team remains committed to maximizing shareholder value by keeping costs low and rapidly moving into full production," said Michael Stojsavljevich, President and CEO of Bonanza Goldfields Corporation.

The Alaskan-25 plant has the capacity to process approximately 40 tons of material per hour.

"Additionally, we have negotiated a new 2 year lease extension for the mining claims, including an option to purchase, with Judgetown LLC, which is effective October 2012. These leased mining claims contain approximately 123 acres of pre-1955 patented lands. Our first phase of production focuses exclusively on patented properties," added Michael Stojsavljevich.

About Bonanza Goldfields Corporation

Bonanza Goldfields' Tarantula Project is a contiguous block of 38 lode claims covering 600 acres in the Date Creek Mountains, Arizona. The lode claims are directly adjacent to the historic Congress Mine, Arizona. The Congress Mine produced about 400,000 ounces of lode gold. Highly prospective features are ubiquitous throughout the immediate area, including extensive greenstone dikes and quartz veins as well as placer gravel deposits. Many of the newly discovered Tarantula quartz veins are similar in character to the productive veins of the nearby Congress Mine and the other historically productive mines in the area. Bonanza's management strategy is to process feasible placer ore, while proving out hard rock structures. Modern access for heavy equipment is already in place via Bonanza's privately constructed roads, and rail is localized. A Preliminary Geological Report of the claims and the immediate region is completed.

Learn more about Bonanza Goldfields:

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mining exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Michael Stojsavljevich
President and CEO

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