SOURCE: Bonanza Goldfields Corp.

August 22, 2012 08:00 ET

Bonanza Goldfields Finds Gold and Rare Earth Metals

PHOENIX, AZ--(Marketwire - Aug 22, 2012) - Today Bonanza Goldfields Corp. (OTCQB: BONZ) (PINKSHEETS: BONZ) ("Bonanza" or the "Company") is announcing higher than average gold concentration and the presence of four rare earth metals from tests of its Piedmont Mine area.

The test results found an average of 0.42 oz of gold per ton (13 grams per ton) and the presence of all four rare earth metals the Company tested for: Cerium, Lanthanum, Scandium and Yttrium. The amount of gold from this test is three to four times the concentration of gold found in historic assays Bonanza has completed. The testing was completed by a globally recognized third party assayer and the samples were randomly selected and gathered by an outside geological research firm.

Additionally, Bonanza successfully drilled a water well which is expected to provide enough water for the company to process its gold reserves.

"We are very excited with the results of our rock chip assays which tested for gold and rare earth elements as well as the finding of additional water for the future development of our land. These results show our claims contain extremely valuable elements for us to exploit for the benefit of our shareholders," said Michael Stojsavljevich, President and CEO of Bonanza Goldfields Corporation.

Gold Assays:

Our most recent gold assays occurred during the month of July 2012 and were surface level rock chip assays on the Company's Bureau of Land Management (BLM) claims located near the Piedmont Mine area.

The assays were completed based on the geological teams' recommendation to study the Piedmont Mine. Bonanza's geological team staked out and acquired the Piedmont in December 2011 as part of the planned Tarantula Project expansion. The assays were completed at a third party globally recognized assayer.

Table 1: Surface area rock chip samples on our BLM land claims in the Piedmont Mine area 

             
TARANTULA   Au (Fire)   Au (Fire 2)   Au (Fire 2)
Control #   ppb   Grams/per ton   Ounces/per ton
681   >3000   20.2   0.65
682   >3000   45.5   1.46
683   52   n/a   n/a
684   47   n/a   n/a
685   13   n/a   n/a
             

*Assays reported in grams and ounces per ton
**Conversion based on 31.1 grams = 1 troy ounce of gold

Rare Earth Metal Tests:

The Company also tested for the most prevalent and critical rare earth metals (REM) in the Arizona geographic region, which are Cerium, Lanthanum, Scandium, Yttrium. The tests proved positive for all four rare earth elements. The Company is now planning future tests for the other 13 critical rare earth elements and for estimates of concentration. The plan is to test for the remaining 13 metals in Canadian testing facilities where more advanced analysis can be performed.

Major Rare Earth Metals Uses (listed by metal):

Cerium is used in auto catalysts, petroleum refining, and in metal alloys.
Lanthanum is used in hybrid engines and metal alloys.
Scandium is used in sports equipment, the firearms industry and dental applications.
Yttrium is used in red color, fluorescent lamps, ceramics, and as an agent in metal alloys with applications to superconductors and medical devices.

Water Well Drilling Results:

In late July 2012 Bonanza completed a second water well on its flagship Tarantula Project. This additional well is a crucial first component part of a broader gold processing plan. Further, drilling of the well was necessary to meet the water specifications of the selected placer mining equipment prior to entering a gold processing phase. 

The well is 605 feet deep, and assay samples were taken every 20 feet. Management intends to test these samples in the future to assess production feasibility beyond placer and rock chip on Bonanza's claims. These 30 samples will allow the geological team to get its first snapshot of the Tarantula Project at significant depths below surface level.

About Bonanza: 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: http://www.bonanzagoldfields.com 

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.

ON BEHALF OF THE BOARD

Michael Stojsavljevich
President and CEO

Contact Information