The penny stocks are FUN,
just had a ideal, lots of volume in cusif, and a little in sdmcf.
this would make a perfect merger, cusif has been around a long time, have a small mill, I believe they are working some high grade from the bear vein.
have two properties that have potential.
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usac in the Media
what they're saying
about us...
Excerpt from "Lombardi Publishing Corp,"
Penny Mines News Letter,
December 1998 Issue
While gold production has declined steadily over the past three
years at Cusac Gold Mines Ltd. operations, (TSE/CQC,
$0.12), the company hasn't given up on its Cassiar, British
Columbia gold camp.
In fact, in a move that will likely result in the start-up of new
production, Cusac has optioned the adjacent Taurus property
from International Taurus Resources Inc. (VSE/ITS).
Cusac's principal asset, the Table Mountain mine and mill, has
produced 350,000 ounces of gold since 1985. Its located near
McDame Creek and the town of Cassiar, in northern British
Columbia (approximately 1,240 kilometers north-northwest of
Vancouver). Production at Table Mountain has been declining
for several years. It produced 21,905 ounces of gold in 1996.
In 1997, with full production suspended in the fourth quarter,
it produced 8,331 ounces. Limited production in 1998, mostly
from surface mining of the Bear vein, totalled 914 ounces.
Underground mining at Table Mountain may be a thing of the
past. But at least two other options exist for future
developments at the property.
First, Cusac has identified a resource in the old tailings pond,
which was active from 1985 to 1992. In 1997 and 1998,
testing concluded that the pond contains 700,879 tonnes of
material grading 1.25 grams per tonne (g/t) gold, resulting in a
resource of 28,202 ounces of contained gold. Current
projections anticipate production of 5,000 ounces per year for
three years, at a cash cost of less that $100 per ounce.
Second, Cusac also continues to surface mine the Bear vein,
and to stock-pile ore to be milled in April of 1999. At least
five target areas for further exploration have been identified at
Table Mountain. The structures targeted are underground, but
are similar to other veins previously mined.
The nearby Taurus property likely represents the next
development site for Cusac, though. Announced in
September, the option from International Taurus allows Cusac
to earn a 60% interest in the property, through payment of
cash and shares and by performing a minimum of $1.7 million
in exploration work over the next four years. A further 10%
interest may be earned through the completion of a bankable
feasibility study.
While this option is in good standing, Cusac also has the right
to mine up to 250,000 tonnes per year from the Taurus
property. The resulting gold production would be subject to a
2.5% royalty payment to International Taurus.
Located 117 kilometers north of Dease Lake, B.C., and
adjacent to Cusac’s Table Mountain mine, the Taurus
property hosts significant identified resources. Work
conducted by Cyprus Canada (the previous operator) in 1995
outlined 7.1 million tonnes of material grading 2.35 g/t, using a
1.5 g/t cutoff grade for a total of 534,636 ounces of contained
gold at the 88-Hill deposit. The Highway zone is estimated to
contain 106,197 ounces of gold in 1.76 million tonnes of
material grading 1.88 g/t of gold.
International Taurus completed further work on the 88-Hill
deposit and concluded that drill-indicated reserves of 13.6
million tonnes of material grading 1.01 g/t existed, for a
contained gold content of 442,197 ounces. This estimate
assumed that all of the material at 88-Hill would be mined; no
cutoff grade was applied. Hence, the grade of material to be
mined decreased and the amount of material to mine
increased, relative to the Cypress Canada estimate.
More importantly for Cusac, several high-grade zones have
been identified at the Taurus property. The Central vein hosts
a drill-indicated reserve of 29,480 tonnes grading 21.5 g/t of
gold (equivalent to 20,410 ounces of contained gold). If a
decision were to be made to mine the 88-Hill deposit at the
Taurus property, Cusac geologists believe that discreet zones
of mineralization could be mined at a rate of 450 tonnes per
day. Cusac’s existing mill can be modified from its
current production rate of 270 tonnes per day to process the
extra ore.
Finally, Cusac has also entered into a joint venture in Mexico,
with hopes of establishing a low-cost copper mine at the La
Esmeralda mine site. This joint venture with Minera Basay SA
de CV (Basay) is currently subject to renegotiation, however,
the Cusac/Basay joint venture covers 440 hectares in the
Chalchihuites district of Zacatecas, Mexico. It includes five
mine sites and a modern flotation mill at Gualterio.
In some respects, Cusac's shareholders have been their own
worst enemies. After failing to approve consolidation of the
company's stock (a reverse stock split) in June, the shares
were delisted from the high-profile NASDAQ exchange, under
tough new rules, after 18 years of trading.
Discontent has reached new levels and the share price has
plunged further. In November, Cusac received a requisition
from a shareholder for an extraordinary general meeting, to
which the company has yet to respond.
Cusac's own estimates would suggest that it will require
$1.5-$2.3 million to cover exploration in 1999. If the company
proceeds with a stock offering, current shareholders will see
their investments diluted even further. The total number of
issued shares as of June 30, 1998, was approximately 19.64
million, along with 2.31 million in special warrants
outstanding. Directors and officers hold 1.2 million share
options in the $0.20-$0.35 range.
With its share price now at historically low levels, we believe
that Cusac is undervalued. Its shares traded between
$0.22-$1.40 in 1997, and $1.00-$1.70 in 1996. Assets like
Table Mountain and the Taurus properties may turn this
company into a market darling in 1999.
Investors need to be cautious, however, in terms of the timing
of share purchases. And be aware that further dilution of
value may be in store here.
Recommendation: Strong Buy.
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what a hoot.
perfect match, made in heaven.
have mill, will travel.
this is more fun than a house full of monkeys.!!! |
