The company benefits from a joint venture partnership with American Bonanza Gold Mining Corp. (BZA), another mining junior whose president is credited with numerous mineral discoveries. Moreover, a sustained resurgence in gold bullion prices is making Nevada a particularly attractive environment to develop highly prospective projects. The third most prolific gold territory in the world, Nevada is a mining-friendly jurisdiction that has excellent infrastructure and still offers the prospect for further world-class gold discoveries.

One compelling prospect is the joint venture partnership's Gold Bar Property, which is located in central Nevada in the famous Battle Mountain/Eureka mineral trend. One of the state's three main golden corridors, this famous stretch of real estate hosts a number of major mines, including the Eureka, Cortez, Battle Mountain and Gold Acres discoveries. Historically, it has seen production of over 12 million ounces of gold. And much of this 200-mile-long (320 kilometers) mineral-rich belt still has considerable untapped potential.

The Gold Bar Property encompasses a past-producing open pit, bulk tonnage gold mine which yielded 527,000 ounces of gold in an era when exploration techniques were far less sophisticated than today. Grades averaged 0.08 oz/ton (2.7 g/tonne). Accordingly, several new drill targets are being tested, which include the Millsite-Gold Bar Pit area. This is where an estimated minimum resource of 150,000 ounces of gold is located at depth in high-grade veins. Grades run as high as 0.17 oz/ton (5.8 g/tonne) over 12 meters (36 feet).

Additionally, modern 3-D geological modeling of the property has also revealed an estimated resource of 140,000 ounces of gold in another key mineralized zone, known as the Gold Canyon prospect. Numerous other mineralized zones along a two-mile (3.2-kilometer) strike length are also scheduled to be tested for gold content in 2003. All told, the numerous tested and untested mineralized zones on this property suggest the potential for a multi-million ounce discovery. And the particular dynamics of this property still make it amenable to a modernized low-cost, bulk tonnage mining operation.

The partnership's other project is the Pamlico Property. It is located in a prolific mining district in western Nevada which hosts the Walker Lane golden corridor. This extensively mineralized structure is also the focus of a major exploration program by the world's largest and most successful gold mining company, Newmont Mining Corp. Indeed, this locality has seen a recent staking rush following compelling drill results that suggest that Newmont and a joint venture partner, Midway Gold Corporation, may be sitting on a multi-million ounce discovery. Additionally, numerous high-grade targets over a strike length of at least six miles (10 kilometers) have been encountered in this area. They include a number of compelling targets on the Pamlico Property.

It is worth noting at this juncture that there's a well-known adage in mining circles that goes: "If you want to find plenty of gold, go poke around an old abandoned gold mine." It's a simple but often effective formula that may yet prove true with the Pamlico Property. Etched into the side of a parched hillside are the tunnels that bear testament to historic small-scale gold production from narrow high-grade quartz veins.

Significantly, a number of high-grade veins have also been found near surface. And American Bonanza's underground 3-D geological modeling suggests that known veins may converge into rich bonanza (thick, high grade) feeder systems. Moreover, the presence of numerous historic mining shafts and tunnels on this property also provide ready access to these new high-grade gold zones.

In December 2002, four high-priority targets were selected for further drilling. The results were announced in late February 2003. This early stage drill program totaled 1,608 feet in eight holes and was designed to confirm and expand mineralization encountered previously in underground workings and earlier drilling. Encouraging results of 55.5 g/tonne (1.62 oz/ton) gold over one metre (three feet) and 95.6 g/tonne (2.79 oz/ton) gold over 0.3 metres (one foot) were obtained from two of the four mineralized structures -- all four of which returned gold values. Several intervals that tested structures did not encounter high-grade gold but contain anomalous gold grades of between 1.0 g/tonne (0.03 oz/ton) and 0.5 g/tonne (0.02 oz/ton) gold which suggests potential for these structures in other areas.

American Nevada has an option to spend up to U.S. $2.3 million (Can. $3.6 million) over three years, primarily by way of funding the drilling of both of these highly prospective properties. In return, the company stands to earn up to a 50 per cent ownership of each project. However, the joint venture contracts also allow American Bonanza to buy back up to 70 per cent ownership of each property by reimbursing American Nevada double the money spent on exploration. This clause is a key indication of how highly American Bonanza regards the economic potential of these projects.

The prospects for continued successful drill programs in 2003 on these two properties are further encouraged by the fact that American Bonanza, the operator, has strong, technically adept management. This is evidenced by the recent decision of Goldcorp. Inc., the world's second largest unhedged gold mining company, to become a major shareholder of American Bonanza. The company's President and CEO, Brian Kirwin, was previously a senior geologist with the Canadian mining powerhouse Placer Dome. Indeed, he has been involved in a number of prominent mineral discoveries worldwide, including several in Nevada. Furthermore, Goldcorp's move can also be viewed as an impressive endorsement of the two jointly owned gold projects (especially since American Bonanza only has one other gold project, which is in Arizona).

Meanwhile, American Nevada is also in very good hands. It is presided over by Hari Varshney, C.A., who also runs Varshney Capital Corp., a merchant bank and venture capital firm. He is a financier with an enviable track record for backing a number of successful projects. Mr. Varshney was instrumental in the formulation of a joint venture between Camphor Ventures Inc. (TSX.V-CFV) and Mountain Province Diamonds Inc. (TSX-MPV). These diamond exploration juniors and their venerable partner, De Beers, are exploring a world-class diamond deposit in Canada's Northwest Territories. This project is viewed by many who follow diamond exploration as being on-track to become Canada's fourth diamond mine.

SmallCapMedia believes that the mine-finding talents of Brian Kirwin, matched with the financing acumen of Hari Varshney, make for a dynamic alliance that should benefit the shareholders of both companies. Moreover, American Nevada (a relatively new story) has the added advantage of still being appreciably undervalued at around Can $0.11 (U.S. $0.07). This affords the stock considerable potential upside in a 'rising tide' gold market, especially with the prospect of encouraging near-term exploration results.