SOURCE: Bonanza Goldfields Corporation

December 01, 2011 10:30 ET

New Acquisition Expands Bonanza Goldfields Tarantula Project

PHOENIX, AZ--(Marketwire - Dec 1, 2011) - Bonanza Goldfields Corp. (PINKSHEETS: BONZ) ("Bonanza" or the "Company") announced today the expansion of their flagship Tarantula Project with the acquisition of the Piedmont Mine, a gold and silver mine in operation until 1940. The Piedmont Mine has been deemed by the Bonanza geological team a highly prospective addition to the Tarantula Project. The acquisition expands the Tarantula Project to 38 lode mining claims covering over 600 acres of contiguous property directly adjacent to the historic Congress Mine which produced over 400,000 ounces of lode gold between 1887 and 1959.

Bonanza Goldfields' President Scott G. Geisler stated, "Our geological team continues to identify and acquire prime gold properties expanding Tarantula's footprint to world class levels. We believe the continued acquisition and expansion of Tarantula claims in close proximity to the Congress Mine will prove out to be historic in nature."

"The Preliminary Geological Report continues to expand with Bonanza's new acquisitions, and will soon be made available to our shareholders via Bonanza's website," stated Geisler. "Furthermore, Bonanza's year end and first quarter financial statements will be forthcoming, completing the restructuring of the company and regaining our fully-reporting status."

Geisler continued, "Earlier this month, Bonanza signed a letter of engagement with Global Mining Capital Development Ltd to be our exclusive financial advisor in greater China. The $10 million funding target level discussed would represent an equity placement priced far north of Bonanza's current valuations. We believe the current market capitalization does not represent the fair value of Bonanza's 600-acre contiguous land package bordering the historic Congress Mine. We are committed to bringing favorable funding and value to our shareholders."

About the Piedmont Mine: In 1940, the owner of the Piedmont Mine was Stansbury. The mine produced gold, silver, and copper from an east-west to northeast trending vein which cuts massive, unfoliated Precambrian granite, and usually follows andesite and other mafic dikes which dip shallowly to the north. The vein was apparently accessed by an adit and also an exploration pit (USGS, 2011).

About Bonanza's flagship project: The Tarantula Project is a contiguous block of over 600 acres of pre-1955, patented, private property claims and BLM claims in the Arizona Date Creek Mountains, containing both alluvial and mineralized quartz deposits. Bonanza's management strategy is to process feasible placer ore, while proving out hard rock structures. A Preliminary Geological Report of the claims and the immediate region is now being completed. Modern access for heavy equipment is already in place via Bonanza's privately constructed roads, and rail is localized. The claims are directly adjacent to the world famous historic Congress Mine, Arizona. The Congress Mine operated between 1887 and 1959 producing about 400,000 ounces of lode gold. Unique features appear ubiquitous throughout the immediate area, including greenstone dike extensions, deep placer gravel deposits, and vestiges of numerous pre-historic waterfalls. Additionally, lode gold possibilities exist due to the extensions of schist and mineralized quartz veins in the immediate area of the Congress Mine. (No assurances can be provided that the prior production of lode gold will correspond or predict future production of lode gold.)

Learn more about Bonanza Goldfields and the flagship Tarantula: 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 --

Scott G. Geisler
President and CEO

Contact Information

  • Contact:
    Steven Ragan
    VP of Corporate Communications
    928-251-4044